How could we help?
Increase performance level
Our customer, ArcelorMittal Downstream Solutions (AMDS) provides processing and distribution solutions for ArcelorMittal’s automotive and industrial customers in Europe. In addition to the distribution of flat and long products, ArcelorMittal Downstream Solutions offers value-added and tailor-made steel solutions through its Steel Service Centers Europe. With more than 25 Steel Service Centers (SSC) across Europe, AMDS is one of the largest service providers in this field.
The project:
One of the key elements for a profitable business is the optimization of processing costs, including the handling of slitting/decoiling and the packaging of the various coils according to specific customer orders.
What have we achieved?
In focus:
Customer testimonial ArcelorMittal
Our contribution
Assessment and identification of challenges
After a significant investment period in the automation across the different production lines, the expected improvements levels had been below expectation. An initial assessment has shown several challenges at the production lines, independent from site.
It was therefore necessary to significantly and sustainably improve the productivity of the lines in order to achieve the individual target values.
Approach and methodology
The “Breakthrough” approach was therefore developed by ifp consulting in order to achieve outstanding improvement levels in line operation from both an organizational and technical aspects. ifp consulting has developed a standardized approach to significantly improve the individual line productivity level based on three important KPIs: OEE, changeover time, output/hour.
The approach is divided into three steps, which were carried out for each line within one week:
I – Transparency (Monday – Tuesday)
II – Concept development (Tuesday – Wednesday)
III – Implementation (Thursday – Friday)
The first step, “transparency”, is a combination of data assessment with innovative tools, e.g. to reflect past performance, downtimes and quality levels combined with information on the raw materials and finished goods product portfolio, and the on-site assessment of the production and changeover processes at the slitting and decoiling lines.
Based on the results and findings, the improvement concept was developed in the second step. The activities are clustered into organizational and technical measures and linked to individual effects on the most important KPIs.
The third step is the immediate implementation of organizational and initial technical measures to proof the concept. This is combined with training measures for the line operators and the management team at the Steel Service Center. Typically, the KPIs could already be significantly improved in this step, which also created confidence in the achievability of the target values.
This highly focused approach is based above all on a profound and trustful collaboration with the operators and the plant management in order to get their buy-in and to further orchestrate the improvement process.
Challenges
This condensed and focused “breakthrough” approach requires close and seamless collaboration with the local operators and the plant’s management team, combined with a full commitment to the objectives of this task.
Result
We have been able to apply our approach during the phased roll-out across more than 25 steel service centers and almost 50 slitting and decoliling lines, with overall improvements based on three key KPIs:
OEE: +20%
Changeover time: -50%
Output: up to +100%
The individual line-level targets were transferred into a centralized productivity dashboard by the corporate operations improvement team to track progress and to develop an overarching benchmarking tool for production lines that had not previously been assessed.
Successful collaboration
Lasting effect
Following the very successful implementation of the “Breakthrough” approach at all sites and production lines in Europe, the basis for continuous tracking of line performance has been established. AMDS has therefore used the results of the ifp consulting project to determine the target figures and is currently tracking achievement on a weekly basis in order to monitor line performance and identify deviations for further activities.
Moreover, the continuours review of the line performances based on changed input parameters are conducted individually in order to adapt the individual target levels for each production line.
ifp consulting supports this by individual assessments of the line parameters to calculate the new target levels based on the the standardized “breakthrough” approach.
As this approach has been very successful at AMDS, ifp consulting is now engaged at other ArcelorMittal business units to apply this approach for the performance improvement at other production lines and to exploit the significant benefits in a broader range.
Enquire now without obligation!
How we can optimize your processes
Our team of seasoned professionals brings decades of experience in production and logistics optimization. By partnering with ifp consulting, you gain access to industry-leading insights, methods, tools and technologies that deliver immediate and tangible improvements. Contact us now to make the transformation and optimization of your processes a success!
