At a Glance
In this project with Renoir, a steel manufacturing client had the objective of implementing digital dashboards, raising compliance and improving performance of one of its plants. By the end of the engagement, the following results were seen:Â
- 100% maintenance compliance compared to the baseline of 27.49%
- ↑ 33.4% in steel melting shop average daily production
- ↑ Average number of daily heats by 22.38%
- ↑ Average heat cycle time by 3.22%
- ↑ Average furnace availability by 2.1%
Background
Headquartered in India, the client is a group company engaged in the manufacture of steel and steel products. From a single-product manufacturing unit, it has grown to become one of the country’s major steel companies.Â
It is a backwards-integrated steel manufacturer offering a portfolio of products including iron ore pellets, sponge iron, billets, ferro alloys, light and heavy rolled steel structures and thermo-mechanically treated (TMT) bars. With three power plants for captive consumption, they are a fully integrated steel manufacturer.
The Challenge
The client has the vision of becoming the leading steel producer in India. To achieve this vision in an expanding market and to lead the competition in the digital arena, it took the step to bring all its data and review mechanisms into an online platform with near real-time visibility.
At the time, the company was facing challenges associated with their steel melting shop (SMS), as it was unable to run it at optimum capacity. In addition, utilisation of the functionality of their maintenance ERP software was suboptimal as user awareness and compliance was below expectations.
The client engaged Renoir to improve operational efficiency by implementing management control systems in the three identified areas of digitisation, furnace operations for SMS & maintenance compliance improvement for Lighthouse for a period of 24 weeks.
What We Did
The objectives of the engagement were to implement digital dashboards, raise its ERP software compliance and improve performance of the SMS at one of its plants. This included preparation of KPIs (leading and lagging), monitoring variances and systematic execution of actions to address performance issues. Changes were to be underpinned by training in new management systems and processes.
A full-time dedicated Taskforce team was selected from various divisions within scope and who were supported by full-time Renoir consultants. Simultaneously, two Management Action Teams (MATs) – Digital and SMS – were set up consisting of division and functional heads on a part-time basis. The MATs had the responsibility to drive the project within their areas and achieve desired results.
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The approach began with studies to analyse performance data, management system effectiveness and behaviours. The studies identified issues with management systems associated with the smelter and poor compliance with the ERP software procedures. Â
After the data studies, the next step was to map the production process to understand the effectiveness of the systems for ensuring process adherence and control. The as-is system was compared with the world class operations management system to identify missing system elements. This gap analysis formed the basis of the final step, namely the implementation of changes to deliver the business performance improvements.Â
The project plan was created in consultation with the project team. The 24-week project was divided into following time-bound phases:Â
Project Setup & Renoir Focus Process®Â
This phase included Task Force team selection, Task Force training, Management Action Team formation and the Steering Committee formation. During Renoir’s Focus Process®, as-is and to-be systems were mapped (design and development) and KPIs were defined. These were discussed with all stakeholders and systems to be implemented in the field were identified.Â
ImplementationÂ
Starting in the 6th week of the project, all the systems were trialed to assess how well they supported the overall. This included tracking of all division performance KPIs and maintenance compliance.Â
Sustainability & HandoverÂ
During this phase, the client’s team took over all project implementation activities with Renoir monitoring activities. This ensured that everyone understood the implemented systems and took the initiative forward once Renoir’s involvement was no longer needed. To foster sustainability of the results, a quantitative audit system was developed that provided an objective assessment of compliance, understanding and usage of all implemented systems. This would then facilitate measurement of the systems’ effectiveness.Â
Systems for efficient data-capture and reporting were established using analytics tools deployed by the client to improve availability of data and expedite decision making. Â
All major review system elements such as MAT presentations were made available in digital format resulting in significant time saving for data collation, verification preparation and presentation on a daily, weekly monthly basis.Â
All production, maintenance and quality KPI dashboards were installed to improve planning of activities and understating of deviations, which in turn provided a basis for setting KPIs and reviewing deviations from them, to improve the flow of information from the shop floor to decision makers.Â
A digital approach for performance monitoring was institutionalised, and motivational elements such as rewards and recognition (monetary incentives) were introduced for improving performance.Â
The ResultsÂ
The project work not only established management control systems across all divisions but also strengthened the foundation for operational excellence initiatives and encouraged the entire team to achieve better results. The project objectives were fully met and having established a culture of continuous improvement, the client is now better placed to realise its vision.
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