Steel Mill Pilot Project Results

(An entire division of a large integrated mill)

Process Steps Involved:

  • Pickle
  • Cold Mill
  • Continuous Anneal
  • Batch Anneal
  • Tandem Mill
  • Tin Plate Lines (2)
  • Leveler / Trim / Inspection Line
  • Coil Prep Line
  • Manual Coil Pack
  • Finished Goods Storeroom
  • *The mill’s standard crewing was three shifts, five days/week

Results in 10 months:

  • Days of Inventory reduced by 58% ($17,000,000 tax free cash generated)
  • Lead times cut by 60%
  • On-time Delivery increased from 54 % to 96 % (with Core Customers @ 100%)
  • Customer Complaints cut in half
  • Biggest quality problem, downgrades due to rust, went from 5 % to 0 %
  • Profitability Increased by $5,000,000 per month.
  • Kanban controls implemented and documented throughout the business.  All crews trained. Inter-unit teams formed, trained, and goal curves in place.
  • Six internal facilitators fully trained: complete with all training materials (slides, handouts, checklists, and demonstration materials).  The entire transformation process was thoroughly documented and the training manual distributed to all facilitators

Level of Effort:

  • One Senior Partner: 2 weeks per month, and
  • One Senior Implementation Specialist: 1 week per month

Our simple, powerful, process is typically self-funding within three months, and generating mega-dollar bottom line results in six to nine months.   Our average ROI in the metals industry exceeds 90 to 1.

A complete overview of our Lean Manufacturing conversion process for the Steel Industry is available in our article “Running Steel Lean.”

Click here to benchmark your own lean progress.

If you are not getting these kinds of results, give us a call.  We’ll provide a risk-free assessment including a process overview, expected results, resources required, ROI, and time frames to accomplish such.

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