Step 4 - Perform remainder of departments Figure 30

OMET SKILLS LEVEL RATING FOR THE CTG PEOPLE PLAN SELECTION

3.3 The first step

3.3.4 Step 4 - Perform remainder of departments Figure 30

Communicate the process

Design CONTROL

Perform Pilot

Track Progress

•

The CTG project plan can be as follows:

76

• The teams:

• First Phase: Finance, Carbon1,RedA 1,Red B&C 1, Casthouse 1.

• Second Phase:BMS, Projects, Carbon2,Red A 2,Red 2.

Presentation 30-Sep-99 08Nov-99 to 11-Nov-99 10-Dec-99 to 15-Dec-99 To

30-Sep-99 04-Nov-99 09-Dec-99 From

15-Aug-99 04-0ct-99 08-Nov-99 Task

Pilot project First Teams Second Teams Figure 31:

r---=---:----_=---:;::---;:~==::c==______,

Presentation in this context means the end ofthe exercise for that particular department 3.3.5 Step 5 - Continue with other departments

Figure 32:

Track Progress Perform

Pilot Design

CONTROL Communicate

the process

• Select and train team leaders.

• This should at least be a one day session to cover process plus documentation.

• It is important that all the team leaders have a common vision and understand the process thoroughly.

• Venue: for example, auditorium.

• A large enough venue needs to be chosen to ensure that all the teams could fit in.

• Anopen plan cubicle type arrangement is preferable.

• All facilities must be provided for the team to work from for example, computer network points, computers, telephones, sufficient desk space, flip charts, writing and presentation material, etc.

• An area to 'park ideas' as they are suggested. This should be open to anyone from the team to other departments sitting adjacent to them.

• Ruri the individual processes.

Figure 33: Summary flow chart of process to be followed

I

Cascade presentation

I

~

^{Pilot Team}

I

l '----i>

^{1 month ....1 1st Phase}

L -

^ImonthN

VI

2nd Phase

^I

1mont.^h Implementation

---~

3.3.6 Step 6 - Track progress

Figure 34:

Perform Rest Perform

Pilot Design

CONTROL Communicate

the process

•

Implementation Tracker.

•

•

A central person need to compile a summary of all the departments combined.

To do this the individual needs to track each departments progress and compile a summary for the total organisation progress.

78

•

•

•

•

3.4

Monthly feedback at Cl meeting. Manager to present actual versus plan on implementation and impact on fixed cost.

Quarterly Appraisal of progress.

Success will be measured in terms of fixed cost actual versus budget.

The target for savings at Bayside Aluminium was twenty percent of total controllable fixed costs.

Mapping the Process

Insome organisations change does not happen as rapidly as it should. Change also does not occur favourably in order to eliminate waste and smooth out processes. Rather processes become clumsier with more additions and rules that become historical legends that are difficult to get rid of. Therefore a system like Mapping the Process aims to simplify the process and eliminate all the wasteful steps thereby making the process simpler and more cost effective.

The procedure followed is

• Use a clean sheet of paper.

• Map the process from the input stage until the output stage.

• Do not question the stages as they are written down.

• If there are more than one outputs, allow the process to branch out into the adjacent process and map the branch process.

• Once the process has been placed onto paper go back to the beginning and take each step asking the following questions

• Why are we doing this step?

• Is this step necessary?

• Is there a better way to perform this step if it is necessary?

• Start to draw the new improved way of doing the process on a clean sheet of paper.

• This process may sometimes require more than one iteration in order to explore all avenues.

A good example of the benefits of mapping the process can be seen using the Casthouse example below. During mapping the process many inefficiencies were eliminated and steps contributing to inefficiencies were reengineered. The result was

• Improved and simpler workflow

• Less equipment - less equipment to produce the same quantity means less costs and more profit

• Visibly improved layout

• Clearer logistics

Figure 35: Before

Bayside's Casthouse has low productivity levels, andpoorcapacity utilisation. (Typical of much of the South Mrican Industry).

BAYSlDE CASTHOUSE

-

ID!

..

3¹

...·.· · ·m.· ·.···..,..··.···,···..···,···.··.· ,. , _ ., .

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Casthouse 2 Casthouse 1 CoolbtgChamber!

176

80

Figure 36: After

Action will resultina rationalised /optimised Casthouse which is substantially more simple.

RATIONAliSED CASmOUSE _._._.. _... _ .._ ..__ _._ _ _ ,

1·---···-···----····-·-·-···-···-· -..- -_.

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potroom B&C

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Reference - Bayside Aluminium network - L IBGIPSIBGA Author - J Wilson - 1999

Insummary mapping the process has many benefits to the organsiation and this should be a process that is entrenched into the culture of the organisation. The learning's that come out of using this process are

• Focus on simplification

• Elimination of waste

• Idea of doing. more with less 3.5 The progress presentation

The presentation format used to track the progress of each teams performance is very important since

• To ensure consistency of reporting costs.

• Similar scales to differentiate deviances.

• For the steering committee to be able to directly compare performance of different departments.

• For the rest of the organisation to be able to see the same presentation and immediately identify with it in different areas.

• This presentation pack will form the overall plant presentation which will be presented to shareholders on the plant appraisal.

Below is an explanation of each graph used to form the presentation pack

Figure 37: Slide 1

FIXED COST ANALYSIS - Bayside

Costs Cl Salaries Cl Maintenance Cl Administration Cl Consumables Cl Pot relining Cl Production Contracts Cl Plant Power and Fuel

Cl Total

gUilD.o.

§ALUMINIUM

R'OOO 181956

64068 50004 48192 36456 36456 25859

442991

Percentage of total 41.1 %

14.5 % 11.3 % 10.9%

8.2%

8.2%

5.8%

100%

Reference - - Bayside Aluminium network - L /BG/PS/BGA Author -JWilson - 1999

The above slide illustrates the following

• The breakdown of the major costs incurred by Bayside Aluminium.

• The percentage makeup of each of the major costs. This would make it easier to focus on the necessary areas.

82

• Note that these are annual costs.

Figure 38: Slide 2

FIXED COST ANALYSIS - Bayside

Prod Cdractas 8%

PetRelinirg 8%

[glBllUtOD

~ALUMINIUM

Reference - Bayside Aluminium network - L /BGIPS/BGA Author - J Wilson - 1999

Salaries 42%

• The pie chart above is simply an graphical illustration of the costs presented on the previous slide

• The pie chart however makes it clearer to visualise the high costs areas, especially when comparing departments

: 0 VALUEADDINGIDEAS

Z Numerous ideas that impact on variable costs and metal volume.

? PoolIManage vehicles

? Anode rodding to operate on2 shift basis

? Increase lifetime on tapping equipment.

? Standardise tapping equipment

? Upgrade and simPIitY casthouse

? Utilise specialisedIpurpose vehicles

Figure 39: Slide 3 - Initiatives

SIGNIFICANT INITIATIVES TO CLOSE THE GAP - Bayside

r - - --- --- - - -- - -- --- -- - - - -- - - - -- -- -- -- -- - - --- ---- - -- - - -- - -- - - - -- - - -- -- - ---- --- --- - --- - --:

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: ~

: 0 MAINTENANCE STRATEGIES :

: :

: Z Full maintenance lease on forklifts :

, ,

Z Replace the tractor fleet '

Z Rebuild specialised vehicles :

Z RationaliseKANBANstores and reduce inventory :

Z Simplify the procedure for dealing with repairables

i

Z Temporary centralisation of maintenance controllers (planners) ,

Z ReM pilot project :

• Improve plant reliability ,

• Reduce inventory levels ;

• Drive the team approach :

,, ,, ,,, ,

, ,'

,_ ------------------------ ------------------------ ----------------------------------------------__I

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~AWMINIUM ~ALUMINJUM

SIGNIFICANT INITIATIVES TO CLOSE THE GAP - Bayside

o

ORGANISATIONAL

? Re-organise and simply worlc flow in carbon and the garage.

? Re-organise the worlc organisation and embrace the unit approach inthe potrooms.

? Re-organise teams by product type in the casthouse.

? Reduce the amount of supervision.

o

^PROCESS

,

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, ,

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--- --- --- ---

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:-SAYSID.

[gIALUMINIUM ~~Wtl..bU"'!~.J.£iJti

Reference - Bayside Aluminium network - L /BG/PS/BGA Author -JWilson - 1999

84

The above slides illustrate

• Significant areas of attention that the team is focussing on in order to perform the reengineering process

• It is not looking at simply reducing people numbers but rather looking at making processes more efficient. Ifthe process thereafter requires fewer people to operate it then it will be a fixed cost saving

• All areas of the process are being looked at for opportunity, for example, process, maintenance and organisational

Figure 40: Slide 4 - Benchmark slide

13)

100

tn 8)

t!:!m

LL40

3)

o

107

HlIIiton AWMINIUM

NNAlun BBC

Reference - Bayside Aluminium network - LIBS/ZZIBSZ/CTG Author - MS Khan - 1999

The above graph illustrates

• The benchmark smelters versus Bayside Aluminium's department

• It is easy to decipher the difference in numbers between the benchmark smelter and Bayside Aluminium and ascertain the gap.

Figure 41: Slide 5 - Actual gap graph The waterfall graph below illustrates

• Benchmark figures against Bayside Aluminium's actual figures

• The justifiable numbers due to Bayside Aluminium's given circumstances

• The gap after all justifiable numbers have been taken into account

• This is the gap that Bayside Aluminium needs to eliminate in order to match world class performance

Considering the differences, Process is over staffedby 8F!'E's.

25 _{8 23}

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Benchmark Shift Specialist Metal&81th stud height Specialists Systems

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-- -.- --. ----- -- - - --- -- ---.--- - ---.-.--- -- ---- - - -- .-.------- ----- - - ----- - -- --- ---.-- -- ---------------.----------- ---

I9JBiIIUon

~ALUMINIUM

Reference - Bayside Aluminium network - LIBS/ZZIBSZ/CTG Author - G Pretorius - 1999

86

Table 5: Slide 6 - Ideas table - 2C form

TOTAL SAVINGS FORPOTIDAYSHIFf OPERATIONS ISR2,n MILLION

Reference - Bayside Aluminium network - LIB S/ZZIBSZ/CTGfPot Operations Author - MS Khan - 1999

The above slide illustrates

• Ideas that are documented and approved

• The approximate timeframe when these ideas will be implemented

• The value of the idea to be implemented

• The sum total ofthe savings expected

Figure 42: Slide7 -saving expected - actual versus budget

The savings predicted to 2001 represents 20% of the PotIDayshift Operations fixed cost budget. Total savings amount to 21,5%

2001 -PIcnm

I

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o+---r---r--r--.--~'--....,....___,

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COST REDUCTION - POTIDAYSHIFf OPERATIONS

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Reference - Bayside Aluminium network - LIBS/ZZIBSZ/CTGlPot Operations Author - MS Khan - 1999

The above slide illustrates

• Total costs required to be saved

• The actual value once tracking begins into the required quarter

88

Figure 43: Slide 8 -Full time employee reduction

FfE REDUCIION - Bayside

1400

1200

~

1000 966

-

.111 800 900

wI-

600 u.

400 200

912

26%reductioninF1E numbersbyend of 18 month period.

o+---,r----r--....----,---y---r--tc---r--r----r----,

1999 2000 2001 2002

I-Actual-Planned -Benchmark

I

IgJBiDiton

~ALUMINIUM

Reference - Bayside Aluminium network - L /BG/PS/BGA Author -JWilson - 1999

The above slide illustrates

• Benchmark target FTE numbers to be reached

• Planned versus actual time taken to reach the target according to the plan

Figure 44: Slide 9 - Simplified organogram

ORGANOGRAM - ANODEandTAPPING OPERATIONS

9 Supervisors 86Operators 12 Contractors

107

Superintendent , 'Anode & Tapping OperationsI

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ • I1

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