Case Studies
The following pages detail the type of work and the results the IES consultants of The iDepartments Enterprise Services Group have been a part of. The consultants of The iDepartments Enterprise Services Group have worked with public as well as private organizations. Due to client confidentiality The iDepartments Enterprise Services has only made public the information from projects with public organizations.
Vale Inco Limited. (Canada: Manitoba Division)
What We Found:
Overview of Findings:
Lack of a functioning Management Operating System. Where indicators and standards exist, they are not used to enhance production at the point of execution. Operations are not controlled and key individuals are unable to make effective resource, quality and process performance decisions based on facts.
Capability of supervisors is poor. Supervisors are “best operators” and lack adequate training. As a result, they do not maximize the output of the resources under them (people and machines).
Common behavior demonstrates an acceptance of mediocre performance, with limited signs of ownership.
There are no structural, embedded ways of continuous improvement, with existing initiatives being focused on systems. The general operating mode is reactive.
The organization’s ability to make a change happen at the point of execution is not sufficient to make the needed changes in the required timeframe.
Skill levels differ per employee, resulting in a variance in output. Limited structural approach to upgrading these skills is part of the cause for maintaining this status.
Employees Worked with: 250
Project Snapshot:
Situation:
Mill and Smelter Operations and Maintenance had been an area of concern for then President of Manitoba Operations. He saw the Smelter as a bottleneck but also indicated the Mill was inconsistent in output and had recent issues. The Surface Plant Manager (Manager of Mill, Smelter and Refinery) took over the surface plants a year prior to beginning the project. The President tasked the Surface Plant Manager with improving throughput of the surface plants a year before the projected started. They had a number of consultants do reviews but were not satisfied with them. The consultants did not meet their needs because they wanted to piggy-back off of current initiatives and wanted to do multiple projects that required resources the Mill and Smelter did not have. The President had previous experience with us at a different mine site in Indonesia and made the decision to bring us in. The Smelter performance was based on anode production.
Solution:
Smelter Operations:
The task team was focused on the key control points within the Smelter and improving throughput through reduced variation and improved on the floor execution.
Smelter Maintenance: The maintenance task team concentrated on improved scheduling of larger preventative maintenance tasks as well as daily coordination of scheduling with operations needs. Planning Alignment: • A new planning system was developed and installed. This included a pull production model based on refinery requirements.
Planning Alignment: A new planning system was developed and installed. This included a pull production model based on refinery requirements.
Supervisory and management training was delivered and active management behaviors installed. Section Coordinators were aligned on production targets and gained a greater understanding of how to meet production targets. Operators became involved in improvement opportunities and worked with supervisors in creating shift targets aligned with monthly production targets.
Outcome:
The project achieved an ROI of 5.9:1 and actual benefits of $16.8M CAD. The target savings were $14M. Production improved by 4.1%.
Issues – Hurdles – Realities:
Departments outside of the project scope impacted project performance. Although these areas were included in the planning stream we were not in the area to ensure consistent production from the upstream customers.
The original asset was in place from the 1960s with very little upkeep in recent years. The client was boringly scheduled to halt production in 2013 which created the culture of running to failure. The project timeframe was not long enough to bring all assets back up to ideal conditions.
Myers Industries (Lawn & Garden Segment) Now the HC Companies
Overview of Findings:
Consistent with most businesses that have grown through acquisition we found inconsistent sales and operations planning (SOP) processes across L&G.
Lack of an effective manufacturing strategy that insures maximized margins by producing the right products at the right location to maximize production capacities and minimize distribution cost.
Existing management operating systems are fragmented and lack the transparency and accountability that would allow existing management team to objectively evaluate performance take corrective actions and develop a culture of continuous improvement.
Lack of standard operating procedures and process predictability tends to limit sound manufacturing practices and effectiveness.
Lack of a cohesive management training program
Brantford findings:
Lack of rules, SOP’s, and processes. Even where processes have been defined they are not close looped and are not followed. Moreover, many are band aid solutions which attack symptoms and not the root cause.
Lack of metrics and transparency. This is exemplified by the fact that there is a lot of talk about customer service but no indicators to measure it. This results in a lack of control at the point of execution and diminished accountability.
Locally, major organizational deficits exist in the areas of leadership and alignment. Furthermore there is a serious lack of depth in management which is compounded by a lack of training.
Lack of sales forecast, no sales involvement and/or commitment to lead times, service levels, minimum order quantities etc. Constant changes to plan, changes not communicated effectively resulting in excessive changeovers and lost capacity.
Customer service is trying to be all things to all men. Nature of relationship to distributors is subservient resulting in dropped shipments and unrealistic promises. No measurement or transparency.
Poor inventory control – excessive, inadequate marking, obsoletes, lack of data integrity particularly outside, poor housekeeping, damaged goods and no system to delete SKU’s.
Tooling is a major bottleneck. Operation lacks processes and control. Drawings are not updated, information is not shared, unable to meet commitments, and subcontracted mold work is uncontrolled and unreliable. Lack of capacity creates rushed work which has a negative effect on quality and results in unplanned changeovers.
Poor manpower planning – lack of effectiveness of temporary workers is a huge issue with the high season coming up. A robust process needs to be defined and actions initiated immediately to minimize quality, customer service and efficiency losses.
Middlefield – Maintenance:
Backlog of work orders exist, but are missing estimated times, making it difficult to determine required labor to complete the jobs.
Backlog consists of very old open work orders that may be duplicates or actually open work not yet performed.
There is a daily assignment sheet, but it is turned in by technicians at the end of the week, without pre planned expectations.
Inefficient reporting which lacks ownership. Reports are not discussed daily, weekly, or monthly on a consistent basis.
A written skills matrix does not exist. It’s impossible for area to determine how you should assign work without key personnel. Training gaps are also difficult to determine.
There are elements of a maintenance system, but many elements are missing and the loop in the system is not closed.
CMS implementation:
Existing CMS implementation is a key element in transforming Dillen, ITML, Procal and Listo into a cohesive Myers L&G organization. We found a lack of consistent functional roles and activities across the organization, which has resulted in excessive manual steps, work-arounds and skill deficiencies.
Critical data has to varying degrees been identified as incorrect, insufficient and in some cases totally absent from legacy systems, i.e. Pricing, BOMs, Work Standards (cycle times).
Poor knowledge at multiple levels has resulted in high risk levels of exposure.
Inability to leverage existing technologies that would have significant positive effect to meet customer demand, and potentially offer up-sell opportunities.
Industry standard practices of basic MRP disciplines are not being followed and need immediate process and skills re-engineering and talent acquisition.
Processes and key activities are not viewed or mapped at a holistic (Myers) level.
Manual processes have resulted in lost time, rework, & high levels of unnecessary inventory levels.
Current installation timeline appears ‘system focused’ as opposed to ‘process focused’.
This wrong focus potentially result in a lack of ownership, unsustainable practices, confusion at the work level regarding job content, work-arounds and ultimately an under utilization of the system investment made.
Employees Worked With: 1838
Project Snapshot:
Situation:
The client had grown by acquisition and had eight plants with inconsistent operating processes. They lacked a strategy to optimize margins by producing the right products at the right locations to maximize production capacities and reduce cost. In the Brantford, Ontario, facility a lack of sales forecast led to excessive changeovers and lost capacity. Sales were not committed to respect lead times, minimum order quantities and other planning parameters. Poor inventory control led to excessive stock, obsolescence and damaged goods. Manpower planning was a critical issue in view of the seasonal nature of the business. The Middlefield, Ohio, plant suffered from a backlog of maintenance work orders, old work orders which were subsequently duplicated, and a failure to estimate time to complete a work order. Maintenance reports were not discussed on a consistent basis and the whole system lacked ownership.
Solution:
The team used simulation modeling to optimize plant layout and reduce freight through plant consolidations. This was supported by a proactive management style which allowed the plants to improve their processes and free up capacity. Mold changeovers were improved and a SMED (Single Minute Exchange of Dies) philosophy was installed. In all sites, the team worked with production, maintenance, warehousing and shipping, customer service, scheduling and transportation. Systems were implemented to accurately plan production to minimize inventory and balance large variations in seasonal demand. Processes were standardized across the businesses to develop one Myers Lawn & Garden way. The focus was changed to emphasize results and professional management in contrast to the previous family run style of business culture.
Outcome:
The project achieved actual annualized benefits of over $20million with agreed savings of $30 million against a cost of $7.6 million. Throughput was increased by over 20% and production costs were reduced by 30%. Three plants out of eight were closed and freight costs declined by 20%. The maintenance backlog was reduced by over 50%. The Statistical Process Control system allowed the 2% overage in material yield to be eliminated as processes ran at standard. The entire organization is now aligned to allow business growth and not act like independent companies.