“Processes shielding – ITALIAN CASE STUDY”

MAG WIRE PLANT – CASE STUDY

WELDING – ITALY

WELDING – ITALY

BUSINESS STRATEGY

• Increase sales in Southern Europe;

The plant is located in Italy and freight cost is key cost element

Product is a commodity ( alloyed steel made as raw material)

and compete in a price driven market;

• Improve scale economy is a way to reduce cost per unit through

capacity expansion. Current demand is higher than full capacity;

• Increase productivity is a key drive to increase capacity;

• The plant process has capability to process recycled material with

low scrap level and good quality level;

• The plant has been investing in Lean Manufacturing philophy aiming

to sustain continuous improvement mind set already in place.

ORGANIZATIONAL ALIGNMENT WITH OPEX

• Vision

• Mission

• Policy Deployment

• Organizational Structure Standard Factory

Standard KPI’s

• Roles & Responsibilities Job Descriptions

Leadership

• Continued Education

• Culture / Engagement /Recognition

• Succession planning

• Change Management

” Become the best in class Mag wire

manufacturer by focusing in production

process continuous improvement, HSE

high performance and striving for

competitive cost and excellent quality

system.

PLANT VISION

Policy Deployment Matrix

Key: O = Owner T = Team A = accountable

POLICY DEPLOYMENT MATRIX FOR: Europe 2011

Revision log: Budget 2011 review T O A

Issue date: Nov'2010 Q1 Q2 Q3 Q4

Prioritise and develop Environmental Health and Safety initiatives

with the aim to achieve zero lost time injury and zero environmental

incident

O T T T T T T T T

Continuous improvement in the existing quality systemA O T T T

Terni MAG Expansion - project designA T T T T

Develop the use of low cost raw materialO T T T T

Cost Reduction ( FO-VO-WIP) O T T T T

T

Consolidate project Star A T T T

T O T

Implement lean tools and TPM A T T T O T

Coaching at each level within the organization - Increase Flexibility A T O T T T T T T

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PM

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QM

S Lost time innjury & environmental incidents zero

A

reduction of complaints ( max 300 ppm) A

98% attainment to plan A

Saving 10% in waste disposal A

5% MCC cost reduction year 2011A

Direct labour productivity improved from 180 to 200 Kgman/hA

Saving 25-50 Eur Ton using LCW Raw material A

Reduce Scap 0,3%A

Lean Audits improved until 6 score A

OWNERSHIP

PROJECTS & ACTIVITIESFor 2011

VISION: ”To become the best in class operations within 5 years by

PDM Owner: MD Terni -Pagliari Mirko

DELIVERABLESin 2011

AIMS throughto 2015

RESULTS for 2011

Key:

O = OwnerT = TeamA = accountable

Aims

Projects

Results

Deliverables

• Mass production;

• Standardized process in a repetitive serial production

• Intensive in capital;

• Three shifts 6 days a week operations model.

Italian Factory owned by a English International group to

produce solid MAG Wire to supply the whole European industry base with MAG solid wire.

Production Process Caracteristics

In order to improve plant produtivity aiming to achieve capacity increase

at same time give the plant control back to the production manager, it

was developed a Manufacturing execution system project comprised by

additional drivers interface in order to establish an automatic and reliable

Shop floor data collection system through and internet connection

Network connecting the plant equipments to a computer system.

The plant had been implementing Lean Manufacturing tools such as

Communication cells where the employee`s could discuss daily basis

the performance and come up with ideas to drive performance using

lean tools for problem solving.

BUSINESS CASE STUDY PROPOSITION

MES – Manufacturing Execution System

MES – AUTOMATIC DATA COLLECTION

MES – Manufacturing Execution System

The hardwares showed in the picture below were installed

in the eletromechanic machines and connected into a

internal network. A number of KPIs and performance

reports became available real time allowing the leadership

team take quick data driven decisions.

First step:

• Display factory supervisory: colored visual

management shows machines in downtime mode.

• Real time trend graphics: shows KPIs about machine

speed, real production, OEE, scrap and productivity

curve per machine e total plant by process.

• Various reports in real time: easy interface

configuration and customization user friendly mode;

• Statistics: promptly analysis to fast problems response

SCADA - Supervisory Control and Data Acquisition

SCADA – PILOT IMPLEMENTATION

Second step: Statistical Process Control.

Process variables such as wire diameter,

treatment bath temperature, bearings temperature.

Trend graphs were implemented to visually

control variances and displays alerts to the

leadership;

Third step:

Maintenance control activities

The operator started interacting with the machine

logging the dowtime via hardware.

Tools consumption control were introduced;

Downtime connected into ERP to feedback planning progress and production costs.

SCADA – PILOT IMPLEMENTATION

03/02/2016 12

• SCADA brought in …

– Process control back to the Management

– Reduce down time to increase capacity

– Remove manual data processing

– Respond to problems before they escalate

– Reduce scrap and optimise machine speed

– Motivate operators

– Understand your process and capability

– Improve maintenance scheduling

– Distribute information, encourage ownership

SCADA IMPLEMENTATION BENEFITS

To Connect shop floor data to ERP IT system meanwhile

feed up the plant KPI’s dashboard therefore creating the

manufacturing execution system.

RESULTS

After MES pilot implementation

Investment - € 87,000

OEE improved from 54% to 85%

Capacity increased in 160 tons per month without

any Investment

Turn over increase - €320,000 per year

Process Scrap reduction from 4% to1,5%

Implementation time: 6 meses

For more information please access

http://www.blindagemdeprocessos.com.br/

Thanks to

http://www.ldcriacao.com/ slides graphics review