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Lean Benchmark Factory Consulting Case - Special Steel Smelting Industry

Company Profile:
A special steel company is a highly specialized special steel production company under the China CITIC Group. Since the joint venture in 1993, the company has taken "building the most competitive special steel enterprise in the world" as its vision. After more than 20 years of development, it has become a leading enterprise in the special steel industry in China. It has been listed as one of the four special steel industrial bases and China Special Steel Technology Leading Enterprise in the “12th Five-Year Plan” of the national steel industry. At present, the company has more than 8500 employees, with an annual output of 5 million tons of iron, 6.9 million tons of steel, 6.6 million tons of billet production scale.

The company's main equipments for ironmaking, steelmaking, rolling and testing are imported from abroad, including 7 rod and wire production lines and 2 medium and heavy plate production lines, , which have various specifications and varieties of production capacity of "rod, line, plate and blank". The company hopes to further improve the operation mode with the help of external forces.

Project Achievements:
Quantitative Indicators:
1. Increased OEE by 12.84%, reduced process energy consumption by 7.93%, increased the comprehensive yield by 0.1%, and increased contract delivery rate by 1.44 in the special steel wire factory in 2016. 
2. Increased the comprehensive yield by 0.43%, reduced process energy consumption by 3.15%, increased OEE by 11.1%, and increased contract delivery rate by 1.37 in the medium plate branch factory in 2016.
3.Reduced the power consumption for steelmaking 16.04%, reduced process energy consumption by 1.86%, increased OEE by 4..49%, reduced the low defect rate by 2.39%, and reduced the central segregation by 0.108% in No. 1 factory in 2016.The first echelon achieved a total financial benefit of 54.14 million yuan and ROI was 1:50.
Qualitative Indicators:
Through the implementation of lean production, 50 qualified internal trainers were trained, and a standardized curriculum system was gradually established.

For more information, please contact Dantotsu Lean Strategy Consultant at 86-21-61122398.


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