report on input material cost saving project
TRANSCRIPT
Any interest, please email to: [email protected] 1/17 2/15/2011
Viglacera Dapcau sheet glass
joint-stock company
Center for Coaching & Transferring
Management technology (CTMT)
Report on Input material
Cost - saving project
Main achievers:
Vu Van Chinh, Nguyen Manh Chan, Do Thi Thu, Pham Quoc Khanh, Nguyen Van Phuc, Mia Ba
Quang, Chu Duc Tho, Nguyen Huu Luat, Than Trong Dai, Ngo The Hanh, Do Duc Ngoc, Trinh
Khac Lu, Nguyen Hoang Thanh, Pham Van Chuong, Hoang Minh Thuyet, Nguyen Danh Van,
Nguyen Chau Van, Quan Ba Manh, Luu Van Nhiem, Nguyen Quang Trung, Tran Van Tho,
Tran Trung Kien, Nguyen Tien Thuan, Do Hong Son, Nguyen Van Chinh, Nguyen Van Viet,
Hoang Van Viet and
Tran Ngoc Trung, Nguyen Manh Mai, Bui Thi Nhan.
Bacninh, January 2008
Reclaim rate of drawn glass
and Norm
Month, 2007
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Contents
Page
1. Project description 3
2. Objectives 3
3. Starting point of the project 4
4. About Viglacera Dapcau sheet glass joint-stock company 4
5. Implementation process 5
6. Achievements 8
7. Other lessons 9
8. Suggestions for spreading the project results 10
9. Appendixes 10
10. Other references 10
11. Images of implementation process 11
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1. Project description:
Name: Input material cost – saving project
Company: Viglacera Dapcau sheet glass joint-stock company.
Coaching and training unit: Center for Coaching and Training Management Technology (CTMT)
Duration : 6 months, from July.2007 to January.2008
Important landmarks:
- July .2007: CTMT hold a training course for management staff of Viglacera Dapcau sheet glass
joint-stock company, inlcuding: “ Enterprise’s busincess efficiency improving; Teamworking
method, Management, Renovation and Analytical tools for project - implementation groups”
- August .2007: The company’s leaders decided to set up 18 project – implementing groups and
work regulation for them. The groups then planned their detailed acting schedules.
- August .2007 : CTMT further trained 260 staff and workers from departmenrts and workshops to
help them renew their concepts, unify their strengths together and propose solution for saving
input material cost as well as increasing the enterprise’s business efficiency. The participants then
contributed 260 innovative ideas to their company.
- August.2007 - January.2008: The groups collected information, analyzed data, suggested and
implemented measures for strictly controlling and reducing raw material and fuel cost in the
whole business and manufacturing process of the company.
- February.2008: Evaluating the project results and holding conference for reporting them to the
company’s leaders and key management staff.
2. Objectives:
The project aimed at surveying real business and manufacturing status of Viglacera Dapcau sheet glass
joint-stock company in order to:
a) Design and organize “Project management, analytical and renovation tools usage for project –
implementation groups” training course.
b) Assist the company in implementing “Input material cost - saving” project.
“The synchronization of the whole management
staff and workers’s awareness of economization,
the absolute control over the business and
manufacturing process did help the company
maintain safe production while raw material and
fuel storage reduces remarkably compared with the
established norm”
Nguyen Van Phuc, Deputy manager of General
Issue Department
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3. Starting point of the project:
Under the leading of Viaglacera Corporation, according to the official letter number 707/TCT-TCLĐ
August 8th 2006, CTMT collaborated with Viglacera Dapcau sheet glass joint-stock company to survey its
real status, design and hold a trainning course for management staff, which helps them renew their
concepts, unify their strengths, sharpen their creativities to overcome obstacles and increase business
efficiency.
After finishing the course, the company’s management staff proposed 15 projects. 6 of them need
implementing soon.
In June 2007, leaders of the 2 companies agreed to select and co-operate with each other to implement
Input material cost – saving project in Viglacera Dapcau sheet glass joint-stock company.
4. About Viglacera Dapcau sheet glass joint-stock company:
Generally in the period of 1990-2004, the company developed very well. Its revenue, labors and
netprofit increased strongly. Glass was its main product which counts for the biggest contribution to the
development and netprofit of VIGLACERA Corporation.
The company’s activities were always based on the philosophy of “Raising product’s quality and
customer’s values”. That’s also the guideline for all short, medium and long-term activities of the
company.
The company’s management staff was methodically trained which made such a big contribution to senior
management staff of VIGLACERA Corporation or other subcompanies It’s also a good place for them to
get experienced. In 2001, it gained the Great Labour Award in Renovation period from the government. Its quality
management system was built and certified by TUV organization as in accordance with ISO 9001 2000
standard.
In 2003, on the request of Viglacera Corporation’s strategy towards developing competitive capacity to
actively integrate into the world market, the company invested capital in drawn and rolled glass
production line and other equipments to make post-glass product and diversify their product range.
In 2005, under the guideline of the state and the corporation on dramatically renewing, rearranging and
developing enterprise, the company changed into Dapcau Sheet galss joint-stock company.
The company now is now actuating to build up an appropriate distribution channel system to meet
customer’s demand better.
Figures from manufacturing and business activities points out that the company is facing difficulties at
present. Production excecuting results at glass-producing unit, main activity of the company also shows
that: although the company had some renovations, their glass-producing technology and process still need
improving more and more. Their product from drawn glass production line have the same quality with or
have no distinct differences from their competitors while their technology chain has just been invested in
2003.
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Especially, in the recent years, the period of 2006-2007, input material cost has unusually fluctuated and
risen. Therefore, the company comes into realize that they need to do research, analyze and unify all the
brains of staff to save input material cost and raise its business & manufacturing efficiency.
5. Implementation process:
The implementation process of Input material cost – saving project at Viglacera Dapcau sheet glass joint-
stock company can be devided into 3 main steps:
- Raise awareness about, methods and measures for synchronous saving activities among the
whole company: :
Training course for key managers and management staff of the all company’s departments allowed
them to have synchronous awareness about teamworking method, management, analytical and
renovation tools as well as propose important measures for controlling and implementing Input
material cost – saving project in the entire manufacturing & business process of the company.
After the course, participants suggested the company set up 18 groups to implement 18 measures
designed to collect necessary information , apply analytical model learnt to analyze the company’s
condition in detail and propose cost-cutting measures.
“The project helps us to raise our
awareness, develop scientific work
style, observe and manage
manufacturing data safely and
strictly. Electricity consumption
ratio / one ton blend reduced
compared with norm.”
Thân Trọng Đại,
Material prefabrication
plant manager
18 project groups including members of many or one unit implemented and solved concrete
tasks/solutions:
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o The 1st solution : develop the staff’s economical awareness when using material and
fuel through training course about it.
o The 2nd solution : Improve contract works to buy input material with better price,
quality, payment and transportation methods. Recheck all evaluation acativities to
ensure imput material quality.
o The 3rd solution : Reduce material storage to decrease bank interest.
o The 4th solution : Sell off utilities not being used for a long time that are still in stock
to decrease bank interest.
o The 5th solution : Avoid changing production schedule and lengthening the amount
of time to produce one product.
o The 6th solution : Reduce sales amount in the South and the Middle, increase sales
amount in the North. Reduce finished product in stock.
o The 7th solution : Increase Ha Tinh sand used in production to replace Van Hai sand.
o The 8th solution : Reduce diminished rate of soda used.
o The 9th solution : Increase equipment capacity, try to avoid using electric during rush
hour.
o The 10th solution : Develop crushed glass management regulation.
o The 11th solution : Re-examine regulations to ensure sustainable stoking regime.
o The 12th solution: Re-examine regulations on gas supplying technology for each kind
of product and anneal regime. Training workers and applying what they learnt to their
jobs.
o The 13th solution: Hold training course to improve cutting and wrapping workers’s
skills.
o The 14th
solution : Do research to reduce tiem for changing product, machine and
direction.
o The 15th
solution: Entrust each unit/part with their tasks.
o The 16th
solution: Increase product reclaim rate at Glass manufacturing workshop.
o The 17th
solution: Boost making full use of subordinate material (paper, nilon…)
o The 18th
solution: Re-examine regulations on providing and using energy resource to
ensure stable provision and frequent observation.
All the above solutions were well-conveyed to the workers and staff concerned in all
workshops/departments before being implemented.
Picture: Organization chart of 18 groups and Project management board, detailed schedule for each
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project.
- Focus on strictly controlling important expenses:
To conduct the above tasks, the management staff in each group once again did their research on the
whole manufacturing and business process – the value chain of the company and defined main
operations and expenses to set detailed indexes so as to observe economical productions. For
example:
o Observe main utilities’s value and productivity of the company every month.
o The amount of main utilities storage every month.
o Times of production schedule changes each month.
o Sales amount / month / area.
o The amount of 2 kinds of sands used each month.
o Soda diminished rate per month.
o Time using machine per month.
o Electricity comsumption per month.
o Electricity consumption norm / one ton blend
o Input, output and storage of crashed glass per month.
o The amount of FO oil, gas or electricity consumption at plant per hour …
The above ratios and detailed norms are required to observe, compare with the ratios and norms over
the same period last year/month and analyze their genereal progressive tendency to find out abnormal
fluctuations. Therefore each unit will propose appropriate measures for approaching established
objectives.
- Observe and update the company’s data, control the whole manufacturing and business process
by visualization method.
The entire objectives, norms and real figures were updated and observed by visualization method
every month. They were shown on charts put at easy-to-see places such as: General issue Department
or right at plant.
The above information helped the management staff and officials be aware of where they were, how
things were actually going and what they should do to achieve their goals successfully.
Executive board of the projects held meeting regularly to examine the entire implementation process
and propose timely measures to adjust and drive the groups to fulfil the company’s general goals.
To implement the saving project, the company also reorganized “5S Program” to keep work
environment tidy, scientific and clean.
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Picture: Important consumptions were analyzed and observed strictly at each workshop.
6. Achievements:
After 6 months implementing the Input material cost saving Project, the company obtained the following
results:
6.1. The project made a move to develop the labour’s awareness of saving input material and keep
their work place safe and clean. It was warmly responded by the entire company.
The synchronization of the whole labour’s consciousness and their support to the total chain value of
manufacturing and business process greatly contributed to the company’s following results:
o Input material’s quality was frequently checked to meet production’s need. (Appendix 8).
o Reclaim rate of rolled glass and white glass remained stable and always above the norms. In
parrticular: (Appendix 2):
With rolled glass:
From August – December 2007: reclaim rate was from 85.94 – 88.17 %,
From January – December .2006 reclaim rate was from 76.77 – 90.23 %. Norm was 84%.
With white glass:
From August – November 2007 reclaim rate was from 81.54 – 83.98. In December 2007,
time of overdone glass was long so the rate was just 78.28 %.
From January – December reclaim rate was from 66.09 – 77.06 %. Norm was 79 %.
o The amount of main input material comsumption reduced compared with the norm.
(Appendix 3). In particular: in August – December .2007 :
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Electricity consumption/ one ton of blend fluctuated from 6.1 – 8.32 KWh/ton, norm was
10.8 KWh/ton;
Amount of resistance, paint, solvent and glass-line paper consumed were always under
control and below established norm, while glass reclaim rate was from 98.3 – 98.7 % with
VFG rough draft, (norm was 98.3 %) and 96.0 - 96.6 % with Dapcau glass rough draft.
Consumption norm of electricity, gasoline and FO oil for body-tinted glass manufacturing
gradually became stable.
o The manufacturing process still continued safely while the real amount of material and fuel in
stock reduced compared with the demand for maintaining production. (minimum storage - 20
days) (Appendix 4 )
6.2. New, scientific and visual management methods were introduced:
Key Performance Indicator (KPI) during the whole manufacturing and business process were
established and observed. (Appendix 5)
All spreadsheets and charts were in agreement and regularly updated, which showed the company’s
management staff an overview of their company’s business condition. Therefore, they can pointed out
abnormal factors, the data tendency and suggest appropriate measures. (Appendix 6).
The method of strictly observing the entire manufacturing and business process is also a base for
setting up consumption norm for that process.
6.3. Approaching methods of synchronously and democratically managing and using the entire
staff’s brains to conduct the company’s general objectives.
So as to conduct the projects synchronously, the company must follow these steps:
- Define clear objectives.
- Set up groups whose members come from 1 or some units?
- Encourage to collect ideas of everyone and choose one which is widely agreed.
- Create ratios showing the projects’s success.
- Develop detailed plan to implement them.
- Manage, support and encourage the groups to work scientifically and effectively.
- Sum up the teamworks and objectives’s results. Rewards.
This method will improve the company staff’s activeness. They will engage in contributing
ideas, managing their works and other activities, finding methods to build up their company’s
competent capacity and business effectiveness, instead of just sit still waiting for their
manager’s leading.
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7. Other lessons:
Some other lessons resulted from this project:
- Fact has shown that: besides many technological and managerial solutions having been
applied during the whle company’s active process, there were still many other opportunities to
seize and measures to apply so as to enhance the company’s competent capacity and business
effectiveness.
As a result, the company must frequently update and accept to change – especially their
thoughts to be able to make progress.
Information data after being collected should be summed up and analyzed regularly and
systematically. In additon, it should be shown visually to easily understand then watcher can find
abnormal problems and suggest appropriate solutions to them.
8. Suggestions for spreading the project results:
+ To maintain the project’s results, the company has the project and its results filed into
standardds, procedures and educated for the whole staff concerned to apply.
+ Research the new method – BPR to continue improving the company’s competitiveness.
9. Appendixes:
Appendix 1: Member list of 18 project-implementing teams, including 125 participants.
Appendix 2: Reclaim rate of rolled glass and white glass in 2006, 2007.
Appendix 3: Some important input material consumptions being strictly controlled and
reducing below the norm.
Appendix 4: Amount of input material in stock required for safe production reduces
below the norm.
Appendix 5: Some imprtant ratios of business & manufacturing process need observing.
Appendix 6: Charts showing important ratios.
Appendix 7: Detailed implementation schedule of the project.
Appendix 8: Evaluation statement of project group number 1, 2, 3, 4, 5, 8 and 18.
Appendix 9: Management staff – training statement of the company: “Renew thought,
unify strength, create to overcome obstacles, improve business & manufacturing process
at Viglacera Dapcau Sheetglass joint-stock company” October 2006.
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Appendix 10: Training report: “Improving business effectiveness of a company, tools of
management, analyzation and innovation” July 2007.
10. Other references:
None.
11. Images of the implementation process
“Make the whole
management staff and
workers thoroughly
understand about and be
aware of saving work as
the basement for the
success of the project”
“Develop detailed action
plan, observe evaluation
raios and propose
appropriate measures in
order to carry out the
project”
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The company’s image has changed considerably into more clean, tidy and magnificent.
Appendix 1
Member list of project – implementing teams (125 participants)
Project executive board
Vũ Văn Chinh - Leader
Đỗ Thị Thu
Phạm Quốc Khánh
Nguyễn Văn Phúc
Mai Bá Quang
Chu Đức Thọ
Nguyễn Hữu Luật
Thân Trọng Đại
5S Project executive board
Nguyễn Mạnh Chấn – Leader
Ngô Thế Hanh
Đỗ Thị Thu
Đỗ Đức Ngọc
Nguyễn Hoàng Thanh
Phạm Văn Chương
Hoàng Minh Thuyết
Team 1
Nguyễn Danh Vạn – Leader
Ngô Thế Hanh
5S Project executive board
Team 2
Nguyễn Văn Phúc – Leader
Phạm Quốc Khánh
Trần Văn Quyết
Team 3
Nguyễn Văn Phúc – Leader
Phạm Thị Thuỷ
Đỗ Quang Hoà
Bùi Thị Thanh Hương
Team 4
Nguyễn Văn Phúc – Leader
Phạm Quốc Khánh
Nguyễn Thu Hường
Bùi Thị Thanh Hương
Nguyễn Thị Kim Chung
Team 5 and 6
Trịnh Khắc Lự - Leader
Nguyễn Châu Văn
Vũ Đình Quyến
Nguyễn Mạnh Hùng
Lê Văn Tạo
Team 7
Nguyễn Hoàng Thanh - Leader
Nguyễn Kim Chi
Nông Trung Lý
Ngô Văn Lạng
Nguyễn Văn Duy
Lê Đình Sơn
Nguyễn Hoa Văn
Nguyễn Thành Trung
Nguyễn Xuân Cương
Team 8
Quản Bá Mạnh – Leader
Nguyễn Thị Yến
Đặng Thái Ngọc
Nguyễn Anh Tuấn
Hoàng Văn Hải
Lê Ngọc Mạnh
Nguyễn Văn Dương
Trần Phong
Huỳnh Đức Long
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Team 9
Lưu Văn Nhiệm – Leader
Nguyễn Kim Ngọc
Vũ Thị Đếm
Hoàng Thị Nhật
Vũ Thị Diệp
Và 16 người khác hỗ trợ
Team 10
Nguyễn Quang Trung – Leader
Đỗ Quang Hoà
Tổ KCS Cty và
Tổ Kho Cty
Team 11
Trần Văn Thọ - Leader
Nguyễn Chí Thanh
Nguyễn Văn Tấn
Nguyễn Bá Thuyến
Nguyễn Bá Hoạt
Phan Thanh Tuấn
Mạc Thanh Tùng
Hoàng Công Xuyên
Team 12 and 14
Trần Trung Kiên – Leader
Lê Văn Quang
Trần Ngọc Tuyến
Nguyễn Hữu Song
Trần Văn Nghinh
Chu Văn Ngọc
Lê Văn Huy
Nguyễn Trung Thành
Nguyễn Như Hoa
Đỗ Xuân Hà
Nguyễn Hồng Long
Nguyễn Văn Trung
Team 13
Nguyễn Tiến Thuận – Leader
Trần Ngọc Tuyến
Nguyễn Văn Thế
Nguyễn Văn Cương
Nguyễn Khắc Thuyết
Lê Văn Tường
Nguyễn Văn Nghệ
Nguyễn Thành Luận
Đào Minh Nam
Team 15 và 16
Đỗ Hồng Sơn – Leader
Nguyễn Văn Chinh –
T.nhóm
Trần Đình Bắc
Phan Xuân Anh
Vũ Đức Chính
Nguyễn Khắc Long
Nguyễn Văn Khanh
Trần Tuấn Luận
Team 17
Nguyễn Văn Việt – Leader
Trần Bình Bắc
Nguyễn Khắc Long
Phan Xuân Anh
Vũ Đức Chính
Nguyễn Văn Khanh
Phan Trọng Bằng
Nguyễn Đức Hạnh
Team 18
Hoàng Văn Việt – Leader
Lê Tuấn Cường
Lê Tiến Cường
Nguyễn Văn Lăng
Nguyễn Văn Tá
Hoàng Thanh Dương
Ngô Thế Anh
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Appendix 2: Rolled glass and white glass reclaim rate in 2006 and 2007
T ? l ? thu h ? i kính cán và kính tr ? ng
50
70
90
1.06 3 5 7 9 11 1.07 4 6 8 10 12
Tháng, 2006 - 2007
T ? l ? (%)
Rolled glass White glass
?
Average: 85.91
73.29
86.95
81.81
Rolled and white glass
reclaim rate
R
at
e
(
%
)
Rate
(%
)
Month, 2006-2007
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Appendix 3: Some main material consumptions are strictly obsersed and reduce compared with established norm
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Appendix 4: Amount of material in stock for safety production reduces compared with established norm.
Năm 2007: Reserve demand for main material/month: 7.858.414.914 VND
Real reserve of main material on average: 1.894.880.413 VND (account for 24 %)
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Appendix 5: Some imprtant ratios of business & manufacturing process need observing
1. Main material buying and storage status (white sand, dolomit, permatit, soda, sunfat, FO oil, glass-line paper, May so, mirror paint,
solvent and limestone) compared with minimum storage norm every month – 20 days ( General issue Department)
2. Main material export and using status (General issue Department)
3. Sales amount in the North, Central and South per month. Sales amount in each area per month/total per month. Revenue and product in
stock. (Business Department)
4. Amount of the 2 sand used every month. Amount of soda diminished after producing. Blend productitvity, electricity consumption/ one
ton blend compared with established norm. (Material prefabrication plant)
5. Observing manufacturing condition of rolled glass and white glass (Productivity and Reclaimation rate, Productivity and rate of A-level
product, Productivity and FO oil, gas, electricity and diesel consumption) compared with norm (Glass plant)
6. Observing crashed glass arising and storage, Times and time to change product or stop machine (Glass plant)
7. Productivity and consumption of paint, solvent, resistance, aluminium compared with norm. Glass reclaim rate (Post-glass product
plant)
The above indexes were observed and analyzed generally, systematically and monthly
in order to give a full picture of the company’s manufacturing & business status.