英语课件 Developing a Next Generation Approach to Improving

1、This report contains information that is confidential and proprietary to McKinsey & Company and is solely for the use of McKinsey & Company personnel. No part of it may be used, circulated, quoted, or reproduced for distribution outside McKinsey & Company. If you are not the intended rec

2、ipient of this report, you are hereby notified that the use, circulation, quoting, or reproducing of this report is strictly prohibited and may be unlawful.Developing a Next Generation Approach to Improving Performance: Lean in Metals and MiningCONFIDENTIALPresentation to the Metals and Mining Pract

3、iceFebruary 8, 2000PRACTICE RESEARCHSOURCES OF KNOWLEDGEClient serviceMMPJapan study tourOther basic materials sectorsExternal literatureTodays questions:1.Reaction?2.Client discussionopportunities?3.Mining?4.Collaboration?KEY INSIGHTS1. Lean applies!2. Significant benefitsUp to double ROINew value

4、proposition and true differentiation3. Main sources of breakthroughVariability reduction across separate steps of value chainImproved flow and equipment availabilitySmaller lot sizes and decreased inventoriesPerformance focus and participation4. McKinsey has demonstrated its ability to helpOVERVIEWW

5、hat are we talking about: what is lean?Why should our clients care: what are the benefits?What does it look like?How can our clients apply this?LEAN THINKING AS A SYSTEM“The Machine that Changed the World”MIT researchers coined the term “lean manufacturing” in this 1990 book to describe the Toyota P

6、roduction System“This is the manufacturing system developed by Toyota which pursues optimum streamlining throughout the entire system through the thorough elimination of Muda (waste), and aims to build quality in at the manufacturing process while recognizing the principle of cost reduction. It also

7、 includes all the accompanying technology necessary to accomplish those aims”Taichii Ohno8 KINDS OF WASTE ANYTHING THAT DOES NOT ADD VALUE1. Overproduction2. Transportation3. Inventory4. Motion5. Rework6. Process7. Waiting8. IntellectType of wasteDefinitionProducing too much or too soonAny nonessent

8、ial transportation wasteAny more than minimum requiredAny motion that does not add valueAny repairOverprocessingWaiting for anythingFailure to utilize talentExampleProcessing customer orders too early, building too much inventoryMoving product multiple times between storage locationsExcess WIP inven

9、tory between millsSearching for product throughout the plant to schedule for next processRepickling coils to eliminate streaksRerunning product through reducing mill more than necessarySlow changeoversNo process, time, or structure to engage employees in constructive problem solving“While its busine

10、sses are very solid, it is Danahers superior management system that has produced such spectacular results year in and year out and gives the company its sustainable competitive advantage”Lehman BrothersJuly 1998DollarsTOTAL RETURN TO SHAREHOLDERS FOR SAMPLELEAN COMPANIESValue of $100 invested 5 year

11、s ago“First Company to win Malcolm Baldridges National Quality Award twice in the awards 11 year history”Quality MagazineApril, 1999“One of Industry Week Magazines Best American Plants”Industry WeekOctober 19, 1998“After the Alcoa Production System was explained to Goldman Sachs, they were so impres

12、sed that they immediately upgraded Alcoa stock. APS gives Alcoa an advantage competitors would behard-pressed to match”Knight RidderAugust 13, 1999“Tier 1 status (is) the Holy Grail. Today, Dana is either Tier 1 or Tier 2 in most markets”Wards Auto WorldMay 1997“Dana recently paid its shareholders t

13、he 240th consecutive dividend since 1936”Industry WeekMarch 2, 1998AlcoaAluminum competitors234113Dana155135S & P 1500Auto partsDanaher Competitors292575SolectronS & P 1500Electrical Com- ponent Index1,568399PRINCIPLES OF LEAN PRODUCTIONSpecific products with specific capabilities offered at

14、 specific prices through dialogue with specific customersAllowing the customer to determine what value-creating steps are initiated by stating demandfor specific products in specific quantitiesThe continuous linkageof all value-creatingsteps and processesthat minimize productlead timesThe total elim

15、ination of waste in the productionof specific productsPerfectionFlowValueLeanPullWHY IS LEAN SO HARD FOR A METALS AND MINING COMPANY?Characteristics of metals and miningLarge, capital-intensive equipment, and facilities, e.g., rolling millsRaw materials with natural variation,e.g., ore, scrap metalC

16、yclical product price due to large-scale changes in supply or demandInaccessible conversion processes,e.g., blast furnacesUniform products to a human observer, e.g., coils of different grade stainless steelSharp distinction in skills between salaried and hourly workersLong history, both as industry,

17、 individual companies, and specific mines/plantsWell-established mind-setMaximize own equipment utilization, little concern for impact on total value streamWork around unpredictable variability, e.g., through large buffer inventoriesSalaried managers and engineers runthe mill from the office buildin

18、g, hourly workers do as toldOptimization of individual business units and not across the value streamCHALLENGE OF LEANSpecific products with specific capabilities offered at specific prices through dialogue with specific customersPursuing economics of scale by fillingavailable capacity with all come

19、rsCommodity mindset: “make it and they will buy it”Allowing the customer to determine what value-creating steps are initiated by stating demandfor specific products in specific quantitiesMaking to forecastsPushing to maximize utilizationThe continuous linkageof all value-creatingsteps and processest

20、hat minimize productlead timesLarge batches for economies of scaleSchedulingaround disruptionsInternally focused debottleneckingThe total elimination of waste in the productionof specific productsFew standards,“black art”Reactive maintenance, equipment failures considered “normal”Improvement through

21、 capital expenditurePerfectionFlowValueLeanPullMany M&M companies*Alcoas quarterly net income adjusted for special itemsSource: Platts Metals Week, McKinsey Metals Practice, Wall Street Journal-$100$0$100$200$3001982 8384858687888990919293949596979899$0.40$0.60$0.80$1.00$1.20Alcoa AdjustedNet In

22、comeAluminumSpot PriceALCOAS PERFORMANCE VS. ALUMINUM PRICESAdjusted net income$ MillionsSpot price (London Metal Exchange)$/poundInitiated Alcoa Production SystemBroke out of price cycle5-year change processOVERVIEWWhat are we talking about: what is lean?Why should our clients care: what are the be

23、nefits?What does it look like?How can our clients apply this?VALUE CREATION FROM LEANMarket forces at workRelentless cost-price squeezeCustomer push for supply chain optimization and customer integrationInvestors rewarding productivity and growthNew value propositionsProduct introductionSpecificatio

24、n tightnessand sophisticationResponsivenessOperating productivityAcross steps of value chainWithin each stepSelf-sustaining improvementDIFFERENTIATION IN COPPER SEMIFABRICATIONChanging customer requirementsLead timeTraditionalNew segments287TraditionalNew segments515Number of alloys-75%+200%Finishin

25、gMinimal lead time for final productCustomer specific inventory at gauge and temperCustomer ordersRoll, anneal and pickleControlledinventory balanced to EOQReplenish-ment ordersCastRequired pull redesign of production systemProduction ordersOPTIMIZING ACROSS STEPS IN THE VALUE CHAINDetermine input a

26、nd output parameters that are performance drivers of down stream processDetermine optimal solution based on total operational cost/performanceFactors include:Grain sizeMoisture contentPurityOptions include:Segregation of ore sizesBlending of ore qualitiesScreening out impuritiesA nontrivial exercise

27、 where relationshipsare not alwaysstraight forwardOptimizing the perform-ance across the flow of both units could lead to unconventional methodsFlow vs FunctionExamples:Mining / RefiningResource planning and allocationOre input qualityConversion / FabricationInventory management (lead time)Process y

28、ieldsWHAT IS LEAN WORTH TO AN INTEGRATED STEEL PLANT?* After capital chargesSource: Industry statistics; McKinsey analysisCommon assumptionsGreenfield integrated flat steel plant in Western EuropeCapacity 3.5 million tons/year off hot roll; sold 2.1 million tons HRC, 1.3 milliontons CRCBaseline cons

29、umption and productivity based on existing good plants8% cost of capitalOperational differencesConservative estimates based on observed performance advantagesof lean in similar settingsOEEPrice premiumLabor productivity advantageWIP80%n/an/a5.5 weeks85% (improved downtime and changeover)5% premium o

30、n 30% of volume20-50% advantage in rolling mill2.5 weeksBase caseLean caseResulting key figuresROS*ROIIRR (20 yrs.)2.2%5.1%6.9%Base case9.2%8.9%11.0%Lean caseMCKINSEY EXAMPLES OF OPERATIONAL IMPACT OF LEAN PRACTICESImprovement dimensionQualityCostTimeExampleStainless steel (U.S.)Chemicals (France)Al

31、uminum (France)Copper (U.S.)Aluminum (France)Uranium mine (Namibia)Performance indicatorSubstandardcoil productionEquipment reliabilityCapacityThroughput timeChangeover timeOn-time deliveryChangeover timeChange50% improvementIncrease from 70 to 95%20% increase45% reduction30-50% reductionImproved fr

32、om 50 to 75%75% reductionOVERVIEWWhat are we talking about: what is lean?Why should our clients care: what are the benefits?What does it look like?How can our clients apply this?FOCUS AREAS FOR A LEAN METALS AND MINING COMPANYRelentless variability eliminationParticipative problemsolvingRigorous pol

33、icy deployment“The sum of many little things make it work”(Alcoa)Serve specific customer needs, by understanding what creates customer value and what does notEliminating all waste, nonvalue-adding activitiesPacing production to actual customer needsDriving improvements acrossthe supply chainStable f

34、low through continuous improvementin flexibility, consistencyand reliabilityComprehensive preventive maintenance programQuick detection of problems at sourceManaging acrossthe value chain tostamp out variabilityTapping the problem solving capacity ofthe work force (hourlyand salaried)Strong shop flo

35、or focusand awareness among managementStandardized best practice of doingany operationRaising the standard when an improvement is identified in pursuit of perfectionTrue customerfocusTop-down goals driven down to equipment/team/operator levelTargets and performance displayed visually in the plantTra

36、nsparent bottom-up performance measurementand dialogueFOCUS AREAS ALONG THE VALUE CHAINMiningRefining/smeltingFabricationPolicy deploymentCustomer focusVariability eliminationParticipative problem solvingImpact on downstream process, e.g., grain size variability, chemistryTPM of crushers, trucksFast

37、 changeovers,e.g., of crushersExternal customer orientationPull schedulingDemand segmentationTPMFast changeoversFlowQuality processesTop-down target setting, performance measurement,and dialogueVisual managementDownstream process, or price premium in market (e.g., purity)TPMFast changeoversFlow and

38、quality im-provement (with mine)Quality processes and tools: SPC/DOEBroad involvementStandardization of operating procedures (no black arts)Plant targetBU targetsSection targetKPI target(OEE, waste, etc.)POLICY DEPLOYMENT: TOP LEVEL GOALS DRIVEN DOWNTO SHOP FLOORSEKISUI EXAMPLECompany targetsResults

39、Problem solving teams actionsIndividual actionsArea action planSection action planRoadmapsAxes for improvementProcesses“We create corporate structure which profits under any circumstances”“No changeover longer than10 minutes”“Reduce changeover time of machine 23 from 13 to 9 minutes by June 1”WHAT I

40、T REALLY LOOKS LIKE: POLICY DEPLOYMENT AND PERFORMANCE MEASUREMENTInstant display of actual status vs. planPareto for prioritizing improvement activities and tracking progressKey performance indicators vs. targets tracked over timeDocumentation of changes made and results obtainedCUSTOMER FOCUS: MAT

41、CHING THE “RIGHT COIL” TO THE“RIGHT ORDER”Prepilot situationOrder applied early in the process. Right order not always applied to right coil MaterialHot strip millMeltCastHAPR-millCAPSlitOrder applied later in the process to match best fits. Result is higher customer quality and satisfactionSlitHAPO

42、rder AMatch!Order BMatch!Inventory locationOrder CMatch!Order AOrder BOrder CR-millCAPHot strip millMeltCastNew processXXXXDifferent shutdown periodsQuality problemsNeed short stripLow delivery performanceVARIABILITY ELIMINATION: GETTING RID OF THE SPEED BUMPSRolling plantBuild inventory before shut

43、downsLittle in-process quality controlLow process yieldin castingSchedule different every weekTube welding plantStore large inventories before shutdownAbout 4% rejectsPhysical size of tube baskets too smallLarge buffer stocksfor incoming goodsCLIENT EXAMPLEWHAT IT REALLY LOOKS LIKE: SORTING AND STAN

44、DARDIZATIONA place for everything and everything in its placeColor-coded standard for oil changes. Oil cans and their proper locations coded the same wayEverything!WHAT IT REALLY LOOKS LIKE: TOTAL PRODUCTIVE MAINTENANCETPM status of workteam posted over areaCut-away models for trainingSpare parts vi

45、sually displayed, reordered by kanbanPreventive maintenance schedule for month posted, color-codedby area of plant.For each day of the month, maintenance to be performed postedon color coded, laminated sheets. Sheet reversed when maintenance performedPROBLEM SOLVING: MOBILIZING THE WORK FORCEFOR IMP

46、ROVEMENTNissan Chemicals AI programProgram to encourage all workers to submit ideas for improvementRequirement for ideas: Related to own job Concrete proposal for implementation Contain supporting data and statistics including cost, estimates and estimates for productivity and cost improvementSmall

47、group-based, each group has 5-6 members, meets twice per weekCentral committee for AI chaired by managing director for personnel, plant committees organized and chaired by plant managers, with HR acting as secretariat3-day training sessions for group leaders, and facilitators several times per yearR

48、esultsTarget for year 5Year 4First3 yearsImplemented ideasN/A987928Savings$4 million$2.5 million$2.4 millionCosts (including implementation of suggestions)$800 thousand$640 thousand$500 thousand_Net benefit$3.6 million$1.86 million$1.9 millionNISSAN CHEMICAL EXAMPLEOVERVIEWWhat are we talking about:

49、 what is lean?Why should our clients care: what are the benefits?What does it look like?How can our clients apply this?OUTLINE OF IMPROVEMENT PATHAvailability of equip-ment low, uneven, or not measuredLimited inventory controlFew standards for operatorsReduce major capac-ity lossesEnsure predictable

50、 behavior of equipmentBuild capacity for targeted problem solving performanceEstablish performance measurement systems and targetsStabilize and standardizeFacility flow(optimize)Equipment stable (OEE 75%)Consistent execution of existing production systemHigh inventory levels and lead timesReduce inv

51、entories and lead times by redesigning flowsDedicated flow pathsReduced product complexityRepeating pro-duction cycleEstablish pull systems to avoid overproductionPull across value chain (reconceive)Individual facilities stable with good flowsGood problem solving environment and customer/supplier re

52、lationsProcess linkages (time/cost/quality) across organizational boundariesInitiate improvement activities focusing on speed and end-to-end efficiency in value chainInvolve customers and suppliers in problem solvingExample indicatorsObjectivesTOOLS AND TECHNIQUES FOR VARIABILITY ELIMINATIONTool/tec

53、hniqueObjectiveOverall equipment efficiency (OEE)Changeover reduction (SMED)Sorting and cleaning (5S)Statistical process control (SPC)StandardizationKaizen eventsTotal productive maintenance (TPM)Measure actual equipment availability and focus improvement activities on largestloss categoriesReduce t

54、ime lost in changeovers through improved methods and equipmentReduce searching for tools and materials through clear workplace organizationSystematic measurement to detect and correct deviations at the sourceEnsuring that the most efficient way of performing an activity is used every timeFocused, cr

55、oss-functional, structured multiday improvement eventSystematic, proactive approach to maintenance the end state for stability improvement OVERALL EQUIPMENT EFFECTIVENESS (OEE)Total available timeScheduledtimeWork hoursEffectiveproductiontime100%3%7%1%6%7%9%1-2%1%65%Potentialareas for loss reduction

56、/variability eliminationSTRAND ANNEAL EXAMPLEShut downHolidaysExclusionsNotscheduledNo metalScheduled mainte-nancePreventive mainte-nanceDown timeRepairs Elec-trical Mech-anical Hydraul-icalDelayStrip breaksMissing crewChipoff rollOperation-al delayUnre-ported delay and down timeStringer run rateBre

57、aksChange-oversCoil mix“1-size-fits-all” stringersYield lossProcess lossesScrapStitched endsDentsBad edgesIdentify target equipment Importance in plant, e.g., bottleneck Skills of crews and area management Ease of addressing major loss categories, e.g., changeoverEstablish systematic performance mea

58、surement Weekly OEE measure Daily output measure vs. planConduct improvement activity Communicate objectives to all parties (crews, manage-ment, unions) Solicit crew viewpoints and ideas for improvement Establish targets with crews and IE staff Conduct trials and training Ensure quick implementation

59、 of crew-generated ideas Monitor progress of actual performance toward targetINITIAL IMPROVEMENT ACTIVITIES TO BUILD PROBLEM SOLVING SKILLSELEMENTS OF TOTAL PRODUCTIVE MAINTENANCEEarly equipment managementAutonomous maintenanceFocused equipment improvementSpare parts managementEquipmentmaintenance s

60、trategyOrganizationSTRATEGIC MAINTENANCE FRAMEWORKEffectivenessOEEProcess capabilityEquipmentlife timeFlexibilityEfficiencyParts/materialPersonnelCapitalHighLowLowHighCurrentImprovementTargetTOOLS AND TECHNIQUES FOR FLOW IMPROVEMENTTool/techniqueDescriptionDemand segmentationComplexity reductionDedicated flow pathsUnifor