IDEASFORTHEMEMOTransformingBaosteelTheHRCleanmanufacturingpilothasalreadyprovidedsignificantbenefitsinroll-change,maintenanceandquality.ValueofthecurrentimprovementsisaboutRMBYmillionperannum¶Bothrollinglineshaveachieved11mininworkrollchangeand4.5hours?inbackuprollchange.ThevalueoftheimprovementisRMBxmillionperyear.Furthermore,thereisadditionalimprovementpotentialofinworkrollchange(downto10minjune2003and8min2003/4?)andbackuprollchange(downtoxandy)¶Inquality2subteamshaveachievedtheirtargets:width…andridge…Scaleteamhasnotyetachieveditstargets.ThevalueofcurrentimprovementsisRMBxmillionperannum.Inaddition,newprocessbothforqualityproblemdetectionanderadicationhasbeenestablished.AdditionalsubteamsworkingwiththenewprocessesshouldbeabletoreducethetotalqualityproblemstothetargetlevelbyDec2003?¶Newmaintenanceplanningandschedulingprocesshasbeenestablished.Inaddition,newleantools,e.g.,SMED,….,havebeentrainedtothecoreteamtoincreasetheefficiencyofthemaintenance.Asaresult,thescheduleadherencehasalreadyimproved…andthemaintenancetimeshavebeenreduced…However,theteamshavenotachievedthetargetsyetandthereisstillsignificantpotentiallefttoberealized.ValueofthecurrentimprovementsisRMBXperannum.Asanextstepeffectivenessofmaintenanceisaddressedandnewequipmentstrategiesaredeveloped.¶InadditiontothesubteamresultstheoverallawarenessofleanmanufacturinginBaosteelhasincreased….WhileresultssofarhavebeenpromisingtheresignificantchallengesleftthatneedtobeaddressedtoensurethesuccessofleanmanufacturingatBaosteel.¶CurrentperformanceatHRCisstillnotyetstable.Inallworkstreams(rollchange,maintenance,quality)thereisatendencytofallbacktooldpractices(e.g.,lunch,…..).ItiscriticalthattheimprovementsatHRCarestabilizedquicklyandinstitutionalizedasapartofdailywork(e.g.,SOPsimportanttosupport).WhenoperationshavebeenstabilizedBaosteelneedstopursuefurtherContinuousImprovementsatHRC,andweknowthereisstillalotofpotentialleft(showexamplesinrollchange,maintenance,quality).Furthermore,asyouimprovetheachievablepotentialwillalsoincrease(e.g.,inrollchangefrom8to7minutes).Moreimportantthantheperformancelevelitselfisthatitimprovesfasterthanthecompetition.Onlythencanyoubecomeagloballeader.¶OtherBaosteelunits,e.g.,steelplant,CRC,havenotbeenaddressedyet.Rolling-outleanmanufacturingtootherunitsalsoisaprerequisitetobecomeagloballeader.However,thatisnottrivialatallaschangingbehaviorisverydifficult(aswehaveseenatHRC)andBaosteelisshortofqualifiedresources.¶Becomingtrulycustomerdrivenleanrequireseliminationofunnecessaryactivitiesandcostseverywhere.TransformationofdeliveryprocessestoprovideshortermorereliabledelivertimesisaddressedbytheESIproject.Further,excellenceinsalesandmarketingtotranslatecustomerneedstoproductcharacteristicsandproductionrequirementsisneeded.Similarly,excesscostsinpurchasing(maintenanceitems,fuels,…)andcapex,andconsumptionlevels(e.g.,energy…)needtobeaddressed.¶Whileleanmanufacturingmethodologies,toolsandapproachesarerequiredtheyarenotsufficientalone.Asimportantistofindtheexecutives,managersandsupervisorswhowillbelieveinthepotentialandarewillingtodowhateverittakestorealizeit.Thus,appointingtherightpeopletoberesponsibleforthetransformationispivotalforthesuccess.Intheenditisthepeoplethatmakethedifference.TransformingBaosteeltoacustomerdrivenleancompanyandagloballeaderrequiresawellconcerted2-3yeareffortwhered...
