L4B case study tata steel


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A write up of my time spent on an Asset Management programme for Tata Steel in South Wales.

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L4B case study tata steel

  1. 1. Case Study Specialist Expertise in Manufacturing Process Improvement Andy Dobson, PaCkRaT Ltd.t/a Lean 4 Business Registered in England, Company no. 4676181 Vat. No. 122 6139 44 Tel: 0845 108 3949 Mob: 07850 776994 E: andy@lean4business.co.uk An Asset Management Approach to A Strong Future Tata Steel amongst many global businesses impacted by the onset of the world recession in 2008. The immediate actions of cost cutting led to reliability and cost issues over the longer term; jeopardising the future of the company worldwide as well as the local economy of South Wales. They needed a well thought through maintenance programme to ensure production was capable of responding to demand and operational costs were minimised. Background The Tata brand is highly respected throughout the world and is the world’s most geographically diversified steel producer. They have operations in 26 countries as well as commercial offices in over 35 countries. Tata are the second largest producer of speciality steels in Europe. Tata Steel and Strip Products serve demanding markets worldwide, each with differing needs. Markets include Aerospace, Automotive, Construction, Consumer Products, Defence & Security, Energy & Power, Lifting & Excavating, Packaging, Rail and Shipbuilding. Their Issue In 2008 Tata Steel’s orders dropped 40% almost overnight with the onset of the global recession and the subsequent world steel demand and price slump. They had to cut costs anywhere they could to be able to stay in business. One of the items put on hold was equipment maintenance, meaning that maintenance compliance was down to as low as 15% at the Port Talbot site. The Story In 2010, with little maintenance being carried out in the previous year, equipment was unreliable, resulting in excessive downtime and poor service to a demanding customer base. Costs were also starting to rack-up as equipment was failing prematurely... This was an unsustainable situation and had to be addressed. A project was instigated; CAM-F (Company Asset Management Framework) – a rigorous methodology to manage assets efficiently and effectively, reducing downtime and cost of operation. Andy Dobson joined the existing team in late 2010 to provide specific support for the Steel and Slab department. Although not having worked in Steel-Making before, Andy’s Lean engineering background, helped the department to develop, implement and sustain CAM-F. There were specific issues with Steel and Slab and Andy worked to fit CAM-F to the specific requirements of the area. Previously the maintenance catalogues for each piece of equipment were kept remotely, however as maintenance had not been a major priority, they had not been kept up to date and had been poorly implemented in SAP. Changes to the assets had also not been reflected in the maintenance catalogue so maintenance was often being neglected. Andy was responsible for ensuring that weekly maintenance reviews were carried out and that maintenance plans were adhered to. Andy worked in a mentoring role in order to bring up understanding and increase compliance. This meant the equipment worked efficiently and maximum output was achieved. Also, going forward maintenance costs were reduced by over £300k with an added benefit of using fewer external resources, thus further reducing maintenance expenditure. As a result of the improvements demonstrated at the Port Talbot operation, many of the processes were also implemented in the other global operations to aid reduce running costs and stablise production in an over supplied and price sensitive market. “Andy worked in our asset management improvement programme at Tata Steel and made a very good contribution through his people- oriented approach to change. He also has a lot of consultancy experience and a very good knowledge of operational excellence approaches such as Lean and Six-Sigma”. Roger Hammond, CEO Chief Operating Officer and Partner at Act-3D B.V