SOMETHING NEW
Phase I
The 8-week long phase was aimed at
developing ownership among team members and ‘Focus on Process’. Dedicated task
force and cross functional ‘Management Action Teams’ were appointed for each key
area viz. Throughput, Yield and Supply Chain.
| Throughput |
Yield |
Cost
Reduction |
| 90%
Performance Indication (PI) |
1%
improvement in wire plants 0.5% improvement in wire rod mill. |
Rs. 200/MT
reduction in manufacturing cost. |
The following targets were set :
Phase II
The next 9 – 14 weeks were centred
on gauging and fine tuning the newly formulated processes and designing new systems. This
phase focused on involving the management action teams to ensure ownership and
accountability.
Phase III
From 15 – 40 weeks the team focused
on implementing the new systems and processes.
In addition, a number of areas were
streamlined during the course of ‘Nai Disha’.
Implemented Exhaustive Preventive
Maintenance System and developed skill matrix.
Put structured Root Cause Analysis
tools in action to reduce breakdowns.
Ensured greater control through
Available to Promise (ATP) process on order fulfillment cycle.
Developed new Standard Operating
Procedure to impact work practices.
Developed Visual Management System
throughout the organisation.
Provided extensive training on shop
floor management, confrontation handling, etc.
Outcome and
Achievement
Despite criticism and resistance from
some sections of employees, the new strategy was proved to be successful and the positive
changes in terms of statistics and attitude of the workforce were encouraging. The audit
methodology ‘CAMS’ adopted by Renoir hastened the change process.
The plant average PI showed an
improvement of 25% in December 2003 as against 62% in April 2003. The Yield improved by 1%
and the target cost reduction came down to Rs. 292/MT.
The other positive changes can be
assessed from the table below.
| New practices |
Positive
changes |
| Hourly charts
on machines |
- Enabled Shift Managers to exercise better control on shift
activities.
|
|
- Encouraged prompt corrective actions
|
|
- Facilitated mapping of the machine idle time by the
minute.
|
|
- Enhanced accuracy in booking idle time.
|
| Installation
of scrap collection bins on each machine |
- Introduced the process of collecting and weighing scrap
from every machine at the end of each shift.
|
|
- Increased accountability of scrap generation, reduced
scrap production, thereby loss in yield.
|
| Balanced
scorecard for improvement in productivity |
- Improved operational measuring efficiency by reviewing
score cards for each shift.
|
| Earned hour
as an indicator of throughput improvement. |
- Improved focus on deviation from targets and taking
preventive actions.
|
|
- Nullified the the effect of product mix and size change.
|
|
- Focus shifted from tons to hour.
|
| Better yield
management control systems. |
- Improved yield by changing work practices and better
process control.
|
Graphs on Performance
Excellence & Reviewing Standard
Having identified the strengths and
weaknesses of the Wire Division, it is not difficult anymore to achieve the target of 90%
PI. ‘Nai Disha has brought about a metamorphosis in the work culture of the division.
The Wire Division of Tata Steel aims to be among the top five manufacturers in the world
by the financial year 2008. In the meantime the strive towards excellence continues.
|
