Professional Documents
Culture Documents
Introduction to Manthan
CONTENTS
TATA CHEMICALS OVERALL PERFORMANCE HAD BEEN DETERIORATING OVER THE LAST FEW YEARS
Sales Rs crore PAT Rs crore
1627
1998 1999
2000
2001
2002
2003
1998 1999
2000
2001
2002
2003
687
1998
1999
2000
2001 2002
2003
1998
1999
2003
Price-cost squeeze
There is over 30 % overcapacity in the domestic market Production capacity in 000 tons p.a.
and realisations on exports are lower than that in the domestic market Realisation Rs / ton of SAL**
115
Demand for 01-02 1820 K tons* 420
96
2396
365
525 875
9001 5009
TCL
GHCL Nirma
SCL
TACFL DCW
Total
Domestic
Exports
* Includes internal consumption by producers including Nirma ** Price ex Mithapur, inclusive of excise and bagging costs Source: TCL Marketing department
FURTHER, THE DOMESTIC INDUSTRY FACES THREATS FROM CHEAPER IMPORTS IN THE NEAR FUTURE
Imports can come in cheaper US costs, 000 Rs./MT (natural soda ash) 8.2 1.5 Current landed price*
2.0
1.5 1.3 1.1 2.4 3.9
5.9
7.4
6.5
Variable Fixed Ex-works Local FOB Shipping, CIF cost costs cost freight handling Cost curve suggests price pressure Cash cost**, Rs./MT (2000-01 Indian cost curve) 8,200 Current landed price 6,500 Landed price at 10% duty 4,750 5,000+ 4,500 GHCL Nirma TCL
Duty
Landed cost
5,900
SCL & others 10140 Imports 7760
10
15
20
Demand 19
25
May 98
May 99
May 00
May 01
AND THE PRICE-COST SQUEEZE IN THE CHEMICAL INDUSTRY HAS LEAD TO CONTINUOUS REDUCTION IN MARGINS
Price-cost squeeze in chemical industry, Western Europe, 1986-1994 Index Costs increasing at 0.6% p.a.
Major drivers :
100
Source: McKinsey
TATA CHEMICALS IS THEREFORE WORKING ON GROWTH OPPORTUNITIES WHILE STRENGTHENING POSITION IN CORE BUSINESS
Key Issues
How can TCL achieve long term sustainable competitive advantage in core businesses?
Growth What should be the long term aspiration and strategy for soda ash, urea and salt?
What growth potential (e.g., exports) can cost reduction unlock for the core businesses? What should be the future growth engines for TCL? How far should TCL step out? Is M&A an attractive route? Should available options be pursued (e.g., Soda Ash
consolidation, fertiliser privatisations)?
Purchasing: Review sourcing strategy for key materials and services; improve purchasing
Profitability processes and organisation capabilities
Supply chain: Optimise end-to-end supply chain to reduce working capital requirements,
logistics costs and improve customer service
Throughput
Reduced losses at bottlenecked stations Current state Future state
Manthan
Cost Quality
Reduced accidents Reduced fines generated 40% reduction in compressible cost; 10-20% reduction in total cost
MANTHAN aims at overall performance improvement that is both dramatic and continuous
MITHAPUR IS WORKING LIKE A HUB TO PROVIDE SUPPORT & KNOWLEDGE SHARING TO OTHER LOCATIONS TEAMS WORKING TOWARDS ACHIEVING ACCELERATED PERFORMANCE IMPROVEMENT
Other Group companies
Babrala
CONTENTS
Wave 3 Wave 4
Process flow
Plants or sections
16 Stores & Services 17 Township & Over heads 18 Safety-I 19 MHY & Inbound Logistics 20 Port 21 ENCON 22 Replacement Ideas 23 Safety - II
STD
Power plant MUW plant 8. TOP at MUW 14. TOP at Marine & WTP CC plant 14. TOP at CC plant Boiler 2. Fuel purchasing 4. TOP at boiler Rest of power plant 15.TOP at Rest of power plant 3. Packaging Purchasing
Gypsum, Limestone
Cement plant
Wave 9
Units repeated in cycle - II Process flow Plants or sections Raw material inputs 33 Soda Ash Quality 34 Plant Safety 35 Fire Safety 36 Solar Salt Quality 37 OEE in Soda Ash
Salt works
Brine Refinery
Packaging
Process house
STD
Lime kiln
38 Cement Marketing 39 Sea Water System 40 Corporate & Mktg O/Hs 41 Stores Inventory 42 Administration
Power plant
29.Packaging Purchase
Gypsum, Limestone
MUW plant
CC plant
32. TOP CC & Marine
Boiler
24.TOP at Power Plant
30.TOP at Cement
Cement plant
Wave 10
Wave 12
Wave 11
Wave 13
Salt works
Brine Refinery
Packaging
Process house
STD
Lime kiln
Power plant
MUW plant
CC plant
56 Caustic Throughput & Marketing 57 ESF Cake Utilisation
Raw material inputs 43 Salt Logistics 44 Supply Chain - I 45 Soda Ash Maintenance 46 Corporate Overheads 47 Supply Chain - II 48 Delayed Ideas 49 Lime Path -I 50 Brine Path 51 Lime Path-II 52 Raw Material - Cement 53 Soda Ash Throughput 54 Energy conservation Cement 55 Salt Throughput 56 Caustic Throughput & Marketing 57 ESF Cake Utilisation 58 Water Conservation Gypsum, Limestone Cement plant
55 Salt Throughput
Boiler
58 Water Conservation
WE HAVE TAKEN ENERGY CONSERVATION, WATER MANAGEMENT, MUW PLANT EVAPORATORS AND SIX SIGMA OEE IN CYCLE - IV
64 Water Management
Wave 15 Wave 14
Wave 12 Wave 13
Units repeated in cycle -III Process flow Plants or sections Raw material inputs 51 Lime Path-II 52 Raw Material - Cement 53 Soda Ash Throughput 54 Energy conservation Cement 55 Salt Throughput 56 Caustic Throughput & Marketing 57 ESF Cake Utilisation 58 Water Conservation 59 Maintenance Excellence 60 Waste Reduction 61 Business Process Innovation 62 Replacement Ideas 63 Energy Conservation 64 Water Management 65 MUW Plant Evaporators 66 Six Sigma and OEE Gypsum, Limestone Cement plant
Salt works
Brine Refinery
Packaging
Process house
63 Energy Conservation
STD
Lime kiln
Power plant
MUW plant
CC plant
Boiler
AFTER COMPLETING THE CYCLE-1 WE HAVE NOW STARTED WITH CYCLE-2, IN CYCLE-2 WE SHALL REVISIT ALL THE UNITS OF CYCLE -1 IN 4 MORE WAVES AND CONTINUE TO IMPROVE SAFETY & PRODUCT QUALITY
Wave 8 Wave 7 Wave 6 Q1, 2003 Q2, 2003 Q3, 2003 Q4, 2003 Wave9
Units
Lime Kiln Finished Product Handling Soda Ash Quality Power Plant Plant Safety (MUW, Marine & CC)
Fire Safety Bicarb- Dense Ash Quality Solar Salt MUW Plant OEE - Soda Ash
Cement Marketing Cement Plant Cooling Water System Packaging Purchase Corporate O/Hs
Process House & STD Administration CC and Marine Stores Inventory and usage
Num.of units
CYCLE - III HAS BEEN COMPLETED AFTER COMPLETION OF WAVE- XIII IN APRIL 2005
Wave 13
Q4, 04-05
Units
Supply Chain Soda Ash Maintenance Corporate Overheads Salt Logistics & Distribution
Lime Path Lime Path Brine Path Soda Ash Delayed Idea Throughput Implementation Cement Plant Supply Chain Energy Raw Materials for cement plant
Salt Throughput Caustic Throughput & Marketing ESF Cake Utilization Water Conservation
No.of units
WE STARTED CYCLE 4 BY LAUNCHING WAVE XIV AND WILL START WAVE XV ON 12 AUG 05
Wave 17
Q4, 05-06
Units
Maintenance Excellence Waste Reduction Replacement Ideas Forecast to stock (Business Process Innovation)
MUW Evaporator bodies Water Balance Six Sigma and OEE Energy Conservation 4
Indigenous Purchase Coal and coke purchase Coke Consumption soda ash plant Salt Marketing 4
No.of units
Gypsum and Solar Salt Throughput Cement Plant Throughput Customer profitability improvement Fixed Cost reduction 4
TOTAL COST SAVING IDEAS FROM CYCLE - I, II & III WAVES UNDER IMPLEMENTATION ARE WORTH ~ Rs 135 CRORES
Throughput
134.57
Wave - V
Wave - IV
Wave - IX
Wave - III
Wave - VI
Wave - X
Wave - II
Wave - I
Wave - VII
Wave - XI
Wave - XII
Wave - VIII
Wave - XIII
Total
29.53
Wave-1
7.14
Power plant
2.53
Packaging purchase
6.57
Coke purchase
1.53
L/s purchase
5.54
Lime Kiln
Wave-2
7.58
Process House MUW plant Prod Hand. Solar Salt SABR STD Cement Usage&Services Marketing&Logistic
Wave-3
Wave-4
Town &O/H
TOP at MHY
Wave-5
TOTAL COST SAVING IDEAS FROM CYCLE - I WAVES UNDER IMMEDIATE IMPLEMENTATION ARE WORTH ~ Rs 97 CRORES
0.54
97.04
97.58
Cycle - I Savings
1.34
Power plant
Wave-6
3.23
Lime Kiln
0.16
1.01
0.11 0.66
Wave-7
2.10
MUW
0.79
5.56
4.90
Wave-8
1.20
TOP at Cement Sea Water System Corporate & Mktg O/Hs Process House & STD CCG & Marine
Wave-9
0.24
Stores Inventory
TOTAL COST SAVING IDEAS UPTO CYCLE - II (INCLUDING CYCLE -I) UNDER IMPLEMENTATION WILL BE WORTH ~ Rs.124 CRORES
124.77
Total Savings
UPTO WAVE - XIII, UNITS HAVE SYNDICATED ~ Rs.175 CRORE IN COST AND THROUGHPUT RELATED SAVINGS
Rs Cr
Throughput Savings
37.39 13.09 134.82 171.96
No Investment
10 24.03 54
ROI%
280 260 240 220 200 180 160 140 120 100 80 60 40 20 0
59 59 59 59 59
62 62 62 62 62 60 60 50 58 46
26 11 22
32
40
2 1 14 8 3 2 4 20 22 23 24 3 11
42 5 35 71 75 78 78 79 28 60 60 60 63 66 15 44 48 5 8 33 25 27 30 46 47 47 48 48 48 48 48 48 48 27 27 31 32 37 39
57
Aug-03
Mar-04
Jul-03
Year 06-07
Year 07-08
Year 08-09
Year 09-10
Year 10-11
Sep-03
Nov-03
Dec-03
Oct-03
Jan-04
1 2004-05
2 2004-05
3 2004-05
4 2004-05
1 2005-06
2 2005-06
3 2005-06
4 2005-06
Jun-03
Feb-04
IMPLEMENTATION OF CYCLE - III (till Wave - XII) IDEAS WILL BE FULLY COMPLETED BY MAR 2007 Wave - XII
Wave - XI
Wave - X
60
60 *
9 13 2
50
44 42 38 34 22
1 5 2 1 7 2 2 8 2 3 9 2 4
9 13
10 2 2
21
26
28
30
30
34
36
36
Year 0708
Target Actual 600 574 575 516 ** 522 550 514 525 499 486 500 473 462 475 448 426 450 476 413 464 403 383 425 389 441 448 375 * 400 423 369 358 405 411 375 401 331 382 350 375 314 301 325 351 291 338 342 276 300 326 260 275 299 244 229 277 286 250 267 211 225 225 192 212 244 253 236 198 200 177 175 155 150 125 100
Ye ar 02 Ap 03 r' M 03 ay ' Ju 03 n' 03 Ju l'0 Au 3 g' 0 Se 3 p' 0 O 3 ct '0 No 3 v' 0 De 3 c' Ja 03 n '0 Fe 4 b' 0 M 4 ar Ap '04 ril M '04 ay Ju '04 ne Ju '04 ly '0 Au 4 g Se '04 pt '0 O 4 ct ' No 04 v ' De 04 c '0 Ja 4 n ' Fe 05 b ' M 05 ar '0 Ap 5 Ye r ar '05 05 -0 6
* Impact of rescheduled ideas ** Impact of dropped ideas Note: In above status, Marketing ideas are not included
THE VALUE OF ACTUAL IDEAS IMPLEMENTED IS BELOW THE TARGETED IDEA VALUE
Rs Crores
Target
130 120 110 100 90 80
Actual
127.80 117.09 113.67 **
110.22 106.31 107.32 104.32 105 101.14 103.02 97.6 102.42 100.43 96.96 98.08 96.16 97.76 102.64 96.59 91.92 93.96 * 94.81 88.94 91.63 87.43 95.78 96.84 90.07 89.66 90.71 88.12 84.49 94.05 85.94 88.65 89.85 90.21 90.76 82.8 82.78 83.21 80.49 83.6 83.8 77.35 76.66 83.11 81.61
70 69.59 60 50
Ju l '0 3 Se p' 03 No v' 03 Ja n '0 4 M ar '0 4 M ay '0 4 Ju ly '0 4 Se pt '0 4 No v '0 4 Ja n '0 5 M ar '0 5 Ye ar 05 -0 6 02 -0 3 Ye ar ay '0 3 M
340 320 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0
275
301*
52 52 38 42
42 43 49 50
139
9 31 54
148
10 34 58
159
15 40 58
4
20 46 67
33 53 71
65
65
70
70
99
78 62 45 20 28
3 17 30 1 41 4 8 45
5 28 51
73
73
76
77
11 1 46 46 50 51 52 52 52 52 52 28 32 36 42 45 45 11 19 25
ay -0 2 Ju n02 Ju l-0 Au 2 g0 Se 2 p02 O ct -0 No 2 v0 De 2 c02 Ja n0 Fe 3 b0 M 3 Q a r-0 1 20 3 Q 032 0 20 4 Q 03-0 3 20 4 Q 034 0 20 4 0 Ye 3-0 4 ar 04 Ye a r 05 05 -0 6
Ap r
-0 2
280 260 240 220 200 180 160 140 120 100 80 60 40 20 0
234 219
176 46 55 158
63 58 59
64 64 64 64 64
70 70 70 70 68 70 32 68 58 66 53 107 28
79 63
58
26
47 51 5 8 31 35 22 27 2 25 11 1 14 3 55 56 56 57 57 57 57 57 57 57 8 2 4 33 36 42 45 20 22 23 25 28 28 3 11
32
41
5 41 31 15
48 76 80 83 83 84 65 65 65 68 71
Aug-03
Sep-03
Mar-04
Nov-03
Dec-03
Feb-04
Jun-03
Oct-03
Jan-04
Jul-03
1 2004-05
2 2004-05
3 2004-05
4 2004-05
1 2005-06
2 2005-06
3 2005-06
4 2005-06
Year 06-07
Year 07-08
Year 08-09
Year 09-10
Year 10-11
Cycle II
Wave- VI Wave- VII Wave- VIII Wave- IX
Cycle III
Wave- X Dropped Idea Repl Wave XI
5.73 5.73 5.73 5.45 5.73 7.6 7.6 7.6 7.6 3.09 7.6 0.91 0.1 2.61 2.61 2.61 0.76 5.6 2.57 2.61 3.152.25 4.5 4.5 4.5 4.5 4.5 2.25 66.50 71.35 2.61 1.2 4.5 4.5 1.08 4.5 0.4 0.38 4 4 53.99 18.46 18.46 18.46 18.46 18.46 0.37 0.36 3.84 0.36 3.67 15.29 15.29 3.5 0.36 52.08 13.07 13.49 13.69 3.34 11.98 12.77 12.99 42.64 16.94 11.94 18.32 18.63 18.63 18.63 18.63 15.13 2.6 3.17 0.36 13.32 14.5 38.84 0.25 0.05 0.73 12.35 12.54 12.54 16.94 30.48 6.68 6.99 7.69 31.07 5.88 26.80 2.5
88.83
0.06 42.75 42.75 43.17 36.34 36.51 45.7 43.17 43.17 43.17 45.7 45.78 45.7845.78 45.78 45.78 45.78 45.78 45.78
0 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Q1 02 02 02 02 02 02 02 02 02 03 03 03 0304
Q2 0304
Q3 0304
Q4 Year Year Year Year Year 03- 04- 05- 06- 07- 0804 05 06 07 08 11
Number of 11 20 ideas
28
45
62
78
99
236
Wave- IX
7.32 3.82
8.59
5.46 7.27 5.50
6.8
6.8
6.8
6.8 6.8
2.78 2.78
6.16 1.38 1.45 1.45 1.45 1.45 0.11 0.2 0.88 1.18 4.61 4.61 4.61 4.614.61
0.06 0.1 0.21 0.08 0.51 10.57 0.01 0.15 0.08 0.24 8.58 8.58 10.0510.5710.5710.57 0.60 1.14 0.01 0.06 5.97 6.27 5 0.52 5.03 4.28 4.37 4.37 2.29 2.29 2.29 2.29 2.292.29 2.15 2.15 2.29 2.29 0.34 0.38 0.03 0.06 0 0.2 0.21 0.21 0.21 0.26 0.26 0.26 0.76 0.38 1.08 1.08
4.66
Ap r-0 M 2 ay -0 Ju 2 n02 Ju l-0 Au 2 g0 Se 2 p02 O ct -0 No 2 v0 De 2 c02 Ja n03 Fe b03 M ar Q 1 20 03 Q 032 20 04 Q 033 20 04 03 Q -0 4 20 4 0 Ye 3-0 4 ar 04 Ye -0 5 ar 05 Ye ar 06 0 Ye 6-0 7 ar 07 Ye -0 8 ar 08 -1 1
Rs Crores
128.10
33.03
94.90 94.76
Q4
25.97
45.47
Q4
27.15 24.10
2004-05
32.58
Q2
Q3 Q2 Q1
28.63
2005-06
Q1
Savings 45.47 Accrued (Rs Cr) No. of Ideas Implemented Value of Imp. Ideas (Rs Cr) Wrt. Budget Savings Accrued (Rs Cr) Savings Inbuilt (Rs Cr) --301 77.35
30.85 9.20
---
---
(1.35) 67.15
---
1.21 81.10
(36.12) 101.15
---
Target
Actual
1025
1052
1033
1068
1079
1072
917
600
551*
500 400 300
Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06
* Savings is lower due to higher LS & fuel consumption at Kilns, higher fuel TCO & higher maintenance cost in Cement
Actual
14,037
2002-03 2003-04
Actual
2004-05
22,962 22,007 21,067 20,105 19,162 18,148 16,447 17,257 17,971 15,819 14,366 15,032 13,682 11,421 11,885 12,399 16,515 17,158
23,792 23,513
** 19,470
18,981 19,876
Mar' 04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05
* Cumulative saving target adjusted for all dropped & rescheduled ideas * * Actual cumulative saving adjusted for anthracite coal usage in lime kilns
2002-03 2003-04
Actual
3,626
34,349
2,923
35,421
31,000 28,000 25,000 22,000 19,000 16,000 19,470 21,446 20,243 20,793 23,513 24,431 25,253
22,392
Mar' 05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06
Target
Actual
516 486 514
536
** 522
529
531
462 476 464 413 423 383 375 351 382 401 405 411 441 448
480
488
493
338
342
* Impact of rescheduled ideas ** Impact of dropped ideas Note: In above status, Marketing ideas are not included
Rs Crores
Target
130 120 110
103.02 104.53 105 96.16 93.96 98.08 101.14 97.6 90.76 90.71 91.63 94.05
Actual
117.09 113.67 107.32 110.22 106.31 102.42 96.59 96.84 95.78 102.64 103.48 103.70 94.81 106.88 119.35 117.68 118.25
**
100 90 80 70 60 50
'0 4
89.66
90.21 89.85
Ju ne '0 4 Ju ly '0 4 Au g '0 4 Se pt '0 4 O ct '0 4 No v '0 4 De c '0 4 Ja n '0 5 Fe b '0 5 M ar '0 5 Ap r' 05 M ay '0 5 Ju n' 05
'0 4
Ap r
Ju l'
ay
05
Above Target
20 7 27 27 3 2 1 0 1 1 1 2
Below Target
4 5 9 9 13 16 26 36 41 63 218 4 10 10 1,415 2 1 946
S Ash Throughput
Packaging purchase
Actual savings for these units are being tracked under other earlier units, so only targets are considered here
Limestone Purchase
TOP at Replacement
TOP at FP Handling
SA Maintenance
TOP at ENCON
Coke Purchase
TOP at Cement
Actual Savings
TOP at SABR
TOP at MUW
Sub Total
Fuel Purchase
TOP at MHY
TOP at Port
TOP at Boiler
TOP at STD
TOP at Kiln
Target
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
01/06
Cumulative
Idea status
Planned No. Of Actual No. Value of Ideas to be Implemd Rs Cr Implemd Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to Idea Implmd
No.of Ideas
% of planned
Rs Cr
1 2 3 4 5 6
Fuel purchase & Fuel Mix Coke Packaging TOP at Boilers Marketing & Logistics 1 L/S Purchase
16 03 16 17 361 4
16 3 16 17 292 4
16 3 16 17 259 3
76.53 8.29
89.52 (8.35)
117
93 112 37 51
11.22
25.29 10.69 7.29
10.41
28.37 391 (3.75)
7
8 9
TOP at Kiln
TOP at Pr House TOP at F P H
11
17
9
17
9
14
3.09
7.58
3.09
7.12
100
94 100 100
16.38
24.90
4.32
20.50
26
82 170 16
25
19
25
19
25
19
2.02
1.96
2.02
1.96
5.89 4.96
9.99 0.79
489
418
381
66.45
64.89
98
191.44
155.71
81
Continued
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
02/06
Cumulative
Idea status
Planned No. Of Actual No. Value of Ideas to be Implemd Rs Cr Implemd Actual Value of Implemd Ideas Rs Cr % of
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to
No.of
% of
Ideas
planned
Idea Implmd Rs Cr
planned
Sub Total upto Wave II 11 TOP at Salt 12 TOP at SABR 13 TOP at STD 14 TOP at Cement 15 Usage & Services 16 Supply Chain 17 TOP at ROP 18 TOP at CC Marine 19 TOP at Town 20 Safety - I Sub Total
489 14 10 22
418 14 10 21
381 11 10 20
98 66
81
97
100
109
76
8
11
5
11
5
11
5
2.63
8.06
2.63
8.06
100
100
147 54
1222 284
6
7 19 7 14
6
7 18 7 14
4
7 19 7 14
100 108
100 -
159
84
604
531
489
86.89
84.83
98
237.77
200.50
Continued
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
03/06
Cumulative
% of planned
Idea status
No.of Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned Ideas
Saving status
Targeted
accrued Savings Rs Cr
Ideas to be Implemd
Sub Total upto Wave IV 21 TOP at MHY 22 TOP at Port 23 ENCON* 24 Safety - II Replacement Ideas* 25 TOP at Power Plant* 26 TOP at Lime Kiln* 27 TOP at SA Quality 28 TOP at FPH* 29 Safety -III
604 10
531 10
489 9
86.89 0.79
84.83 0.38
98 48 100 96 -
237.77
0.79 1.41 2.13 NA 6.96 0.49 1.20 0.21
200.50
(0.76) 1.58 NA 0.38 0.60 0.08
84
112
4
24 4 7 15
4 24
4 7 15 5 9 10 8
4
22 4 6 10 4 7 10 8
0.80
1.21 3.92 0.52
0.80
1.16 1.60 0.19 3.07 0.10 0.75 -
5 122 7 -
41
37 95 56 100 -
5
9 11 8
3.23
0.16 0.75 -
(0.33)
NA
1.42
NA
Total
701
627
573
98.27
92.88
95
252.38
202.05
80
* Actual savings for these units are being tracked under other earlier units
Continued
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
04/06
Cumulative
% of planned
Idea status
No.of Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned Ideas
Saving status
Targeted
accrued Savings Rs Cr
Ideas to be Implemd
Sub Total upto Wave VI 30 Fire - Safety 31 TOP at Bicarb Dense ash 32 TOP at Solar salt quality* 33 TOP at MUW* 34 OEE in Soda Ash* 35 Packaging* 36 Cement Marketing 37 TOP at Cement*
701 19 5 25 17 22 14 7 14
627 19 5 11 16 9 14 6 9
573 17 3 7 13 14 13 5 11
98.27 0.11 0.59 1.12 0.05 4.52 1.72 0.72 0.49 2.80
92.88 0.05 0.06 0.97 0.03 2.78 2.68 0.59 0.14 1.92
95
45 10 87
252.38
NA 2.61 0.34 0.87 0.09 2.57 4.32 1.33 0.33 1.93
202.05
NA 2.15 1.18 (0.10) 3.08 0.22 (0.01) 9.79
80
82
136 71
60
62 156
82
29 69
17
507
15
12
11
12
6
11
Total
851
739
673
110.39
102.10
91
266.77
218.36
82
* Actual savings for these units are being tracked under other earlier units
Continued
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
No.of Sr. No. Unit Ideas
05/06
Cumulative
% of planned
Idea status
Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr
Ideas to be Implemd
Sub Total upto Wave VIII 40 TOP at Process House & STD*
851 13 8 25 13 7 10 2 17 2
739 9 6 22 13 5 3 2 17 2
673 5 3 22 11 4 3 2 14 1
110.39 0.77 0.68 0.23 0.00 3.20 0.09 0.00 3.54 0.29
102.10 0.68 0.08 0.23 0.00 0.27 0.09 0.00 3.01 0.23
91 88 12
266.77
0.28 0.18 0.23 NA
218.36
0. 32 3.19 0.32 NA
82
114
1772
114 188 42 -
100
8 100
0.16 0.00
NA 3.17
0.30 NA 1.34
85
88
NA
NA
Total
948
818
738
119.19
106.69
270.79
223.74
83
* Actual savings for these units are being tracked under other earlier units
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
No.of Sr. No. Unit Ideas
06/06
Cumulative
% of planned
Idea status
Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr
Ideas to be Implemd
Sub Total upto Wave X 49 Brine Path * 50 Lime Path - 1 * 51 SCM - 2 52 Delayed Ideas 53 Lime Path - 2* 54 Raw Mat. Cement 55 Cement ENCON* 56 Water conservation
948 2 3 7 4 8 2 5 13
818 1 0 6 2 0 1 0 0
738 1 0 5 2 2 1 2 1
88 100 100
270.79
0.01 -
223.74
-
83
-
31
0.58 -
0.18 -
Total
992
828
752
119.35 106.88
88
271.38
223.92
83
* Saving tracking for these units will be started after implementation of the cost based ideas
01/06
Idea status
Planned No. Of Actual No. Value of Ideas to be Implemd Rs Cr Implemd Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to Idea Implmd Rs Cr % of planned
Sr. No.
Ideas to be of Ideas
Implemd
1 2 3 4 5 6 7 8 9
Fuel purchase & Fuel mix Coke Packaging Top at Boilers Marketing & Logistics1 L/S Purchase TOP at KILN TOP at Pr House TOP at F P H
16 03 16 17 361 4 11
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 -
2.43
0.06 0.27 0.71 0.16 0.09 0.77
3.98
1.13 0.15 0.41 0.07 (0.16) (1.18) 1.36
164 1883 56 58 44 --
-132 162
17 25
19 489
1 0
0 1
0 0
0 0
0.17 0.00
0.00 0.17
0.00 0.00
0.00 0.00
1.03 0.18
0.14 5.85
Continued..
0.30
0.04 6.10
28 104
02/06
Idea status
Planned No. Of Actual No. Value of Ideas to be Implemd Rs Cr Implemd Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to Idea Implmd Rs Cr % of planned
Sr. No.
Sub Total upto Wave II 11 TOP at Salt 12 TOP at SABR 13 TOP at STD 14 TOP at Cement 15 Usage & Services 16 Supply Chain 17 TOP at ROP 18 TOP at CC Marine 19 TOP at Town 20 Safety - I
489
14 10 22 11 5 6 7 19
0
0 0 0 0 0 0 0 0
0
0 0 0 0 0 0 0 0
0.17
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.85
0.20 0.07 0.30 0.18 0.47 0.04 0.08
6.10
0.21 0. 07 (0.32) 0.44 1.06 0.25 0.25 0.09 NA
625
313
129
7
14
0
0
0
0
0.00
-
0.00
-
0.07
NA
112
Sub Total
604
0.17
0.00
7.26
8.15
Continued
03/06
Idea status
No.of Ideas Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr Savings Accrued due to Idea Implmd Rs Cr % of planned
Unit
Ideas to be Implemd
Sub Total upto Wave IV 21 TOP at MHY 22 TOP at Port 23 ENCON * 24 Safety - II Replacement Ideas*
604 10 4 24 4 7
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
7.26
0.03 0.06 0.10 NA 0.21 0.05 0.24 0.02
8.15
(0.05)
112
67
0 --
0.04
NA 0.11
52 20 4 -
0.00
0.00 0.00
0.00
0.00
0.01
0.01 0.00 NA
5 9
0.00 0.00
-
28 TOP at FPH *
29 Safety -III
11
8
0.00
-
0.08
NA
Total
701
0.17
0.00
8.06
Continued
8.27
103
* Actual savings for these units are being tracked under other earlier units
04/06
Idea status
Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr Savings Accrued due to Idea Implmd Rs Cr % of planned
Ideas to be Implemd
Sub Total upto Wave VI 30 Fire - Safety 31 TOP at Bicarb Dense ash 32 TOP at Solar salt quality * 33 TOP at MUW *
701 19 5 25
1 0 0 0
0 1 0 0
-0 0 0 0 513
8.06
NA 0.41 0.06 0.12 0.02 0.22 0.30 0.12 0.04 0.00
8.27
NA 0.00 0.06 (0.01) 0.31 0.05 0.01 --
103
-
50 -103
42
17
0
0 0 1 0 1 0
0
0 0 1 0 0 0
0.00
0.00 0.00 0.52 0.00 0.00 0.00
0.00
0.00 0.00 2.68 0.00 0.00 0.00
14 7 14
25
12
93
Total
851
0.69
2.68
388
9.34
Continued
8.69
* Actual savings for these units are being tracked under other earlier units
05/06
Idea status
Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr Savings Accrued due to Idea Implmd Rs Cr % of planned
Ideas to be Implemd
Sub Total upto Wave VIII 40 TOP at Process House & STD *
851 13 8 25 13 7 10 2 17 02
3 0 0 0 0 0 0 0 0 0
2 1 0 0 0 0 0 0 0 0
0.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.68 0.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
388
-
9.34
0.07 0.09 0.02 NA 0.02 0.01 NA 0.04 NA
8.69
0.00
93
256
0.23
0.01 NA 0.29 0.00 NA -NA
0
0 -
50
-
1450
-
--
444
Total
948
0.69
3.07
9.59
9.22
96
* Actual savings for these units are being tracked under other earlier units
06/06
Idea status
Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr Savings Accrued due to Idea Implmd Rs Cr % of planned
Ideas to be Implemd
948 2 3 7 4 8 2 5 13
3 1 0 0 0 0 0 0 0
3 1 0 0 0 0 0 0 1
444
100 -
9.59
0.01 -
9.22
-
96
-
50 Lime Path - 1 *
51 SCM - 2 52 Delayed Ideas 53 Lime Path - 2 * 54 Raw Mat. Cement* 55 Cement ENCON * 56 Water Conservation
406
150 -
0.16 -
0.24 -
Total
992
0.78
3.17
9.76
9.46
97
* Saving tracking for these units will be started after implementation of the cost based ideas
SAVING ANALYSIS
Categories of Savings 1 Operational Performance For the Month Jul 05 243.12 For YTD Jul 05 1,007.27
2 Procurement
3 Fixed Cost
422.21
281.06
814.28
1,101.22
4,800.38
8,998.45
a)
Idea Base
90.28
368.48
3,174.15
b)
Top Down
190.78
732.73
5,824.29
TOTAL
946.38
2,922.76
22,392.83
Mithapur Operations
J Bhardava
Co-ordinator
H T Gangaramani
CONTENTS
Mithapur Operations
MUW PlantEvaporator
V P Chandarana G J Adroja
Water Management
T Radhakrishnan V P Chandarana M Ravindranath K B Makadia
Energy Conservation
T Radhakrishnan V P Chandarana M Ravindranath K B Makadia
Alpesh Merja
A J Takodara Jayesh Bhatt
S J Shah
A L Sah A K Savani
Supervisor
Sandeep Shah
M P Mashroo
TAS
Sr Facilitator Co-ordinator
H T Gangaramani
LIKE IN EARLIER WAVE A SYSTEMATIC PROCESS WILL BE FOLLOWED WHICH WILL TARGET COMPLETION OF WAVE XIV BY 20 NOV 2005
Phase 1
Set aspirational targets (1-2 weeks)
Phase 2
Phase 3
Phase 4
Plan implementation (1 weeks) Nov 20
Review meetings
Generate & Take evaluate ideas decisions for improvement (8 weeks) (1 week) Communication Sep 26
Plant SC
Aug 12
Aug 22
Plant SC
Oct 28
Plant SC
Develop cost
database
Develop
detailed implementation plans
Existing ideas
Understand
organisation and process flows
Formal
steering committee meeting for finalisation of all ideas
Understand impact of
existing ideas
sessions
Suppliers Competitors
Evaluate and
prioritise ideas
Syndicate ideas
RECENTLY WE HAVE INITIATED THE SIX SIGMA PROJECTS TO REDUCE THE PROCESS VARIATION
12
40
Step A : Collect VOC & identify CTQ Step B : Project & Team Charter development Step C : High Level process Map (SIPOC) Step 1 : Drill-down Y, characterise CTQ Step 2 : Define Performance Standards
How do my customers look at me? Team Dynamics & Biz. Need How my output links with processes& suppliers? Detailed Y analysis Whats the best way to measure? Can I trust the output data?
FURTHER, WE ARE PLANNING FOR FULL SCALE DEPLOYMENT OF SIX SIGMA FOR VARIOUS PLANTS THROUGH A SYSTEMATIC APPROACH
Step I:
Understand the plant operations in detail, in the context of its function, existence in the organization & outputs produced.
Step II:
Identify various input & process variables with regards to various plants, that are critical to measure the performance of the plant, consumption of inputs, productivity/efficiency of processes, quality & quantity of outputs.
Step III:
Evaluate the measurement systems for the identified input, process & output variables with regards to their ability to reflect the actual performance of various processes.
Step IV:
Analyze the information gathered and plan way forward towards a full scale deployment of Six Sigma for various plants.
CONTENTS
TRAINING EXAMPLE
Star ideas
1.45
Tighter control of
MOL in still effluent using an online lime analyser
1.3
Dec-02
Sep-03
Dec-03
Mar-04
TRAINING EXAMPLE
109
109
Star Ideas
107
104
103
102 101
101
100
99
97
95
Dec-02
Sep-03
Dec-03
Mar-04
TRAINING EXAMPLE
45.0
25.0
23.3 23.3
21.8
5.0
Base Jun 02 line Aug
Oct
Dec
Feb 03
Apr
THE END