BS/020416/SH-WZ(2000GB)1ExecutiveSummary•BaoSteelcurrentlyfacessignificantchallengesinsatisfyinggrowing,demandinganddifferentiatedcustomerneedsinabidtobecomeworld-classsteelcompany.Asthekeybottleneckpartoftheproductionchain,currentHRCperformanceonassetproductivity,productqualityanddeliveryperformanceneedstobesignificantlyimprovedforBaoSteeltosecureandstrengthenitscompetitivepositiontogrowmarketshareinanincreasinglycompetitiveenvironment(Challenges&Opportunities)Topdownbenchmarkingwithexternalandhistoricalinternalbestpracticesaswellasbottomuprootcauseanalysisrevealssignificantreductionpotentialinmaintenancetime,rollchangetime,breakdown,speedloss,rework(includingdowngrade),anddeliveryleadtime.Potentialnearterm(withinnext2years)financialimpactacrossallthreeareascouldreachRMBmillionintotal.Interviewsandperformanceethicssurveyalsoindicatedimprovementpotentialinorganizationalefficiencyandconsequencemanagement.(Diagnosticresults)BaoSteelshouldrealizesignificantimprovementpotentialandresultingfinancialbenefitswithinandacrossassetproductivity,productqualityanddeliverythroughacomprehensive3-5yearschangeprogram.Itshouldengageandempoweremployeesatoperationalleveltorigorouslyapplyleantoolsandstructuredproblemsolvingapproachtosetupsystemsandparticipativeprocessestopursue“Kaizen”.Tosupportleantransformation,BaoSteelshouldalsostrengthenitsorganizationalcapabilitybysettingupContinuousImprovementOrganizationaswellaspolicydeploymentsystemtoinstitutionalizethechangeprogram.ITsupportinselectedhighpriorityareashouldalsobedevelopedtosupportchanges.(Visionforimprovement)HRCshouldkickstartthechangeprogrambyimplementinga6monthspilotprogramimmediately.Itshouldpursuebreakthroughinitiativestoimproverollchangetime,maintenancetimeusingleantoolsaswellassettingupappropriateorganization,systemsandprocessesforcontinuousimprovementbysolvingaselectednumberofhighpriorityproductqualityandbreakdownproblems.ItshouldstartpolicydeploymentinparalleltoinstitutionalizethechangeprogramwithinHRC.ITsupportshouldalsobebuilttosupportimplementation.
