More benefits with fewer costs at Tata Steel Corus

In 2008-2009, Corus IJmuiden (now Tata Steel) worked together with PDM on the "More for Less" project for the raw materials department (GSB).

Case_Corus_Meer voor Minder-crop.jpg

Objectives

Two objectives were defined in advance:

  • Achieving a € 5.8 million reduction in spend within three years.
  • To develop the “Lost Hours” program with which all units within Corus can reduce their lost hours in a sustainable way.

So, on the one hand, cost reduction in the short term, on the other hand, making best practices available for the other eight working units. All Corus working units were able to benefit from the knowledge developed and Corus could do More for Less. The implementation of the process went through a large number of factories, notably the GSL, PeFa, SiFa, KoFa 1 and KoFa 2.

Corus was skeptical in advance. Consultants evoked the image of beautiful words and few deeds. PDM was able to adjust this image. The PDM team, in collaboration with Corus management, has proven to be ‘implementers’ at all levels. Making proposals, creating support, training and implementing. The basis was laid to make the next step forward in the development towards World Class.

Results

The results of the 40-week process include:

  • Implementation of a package of measures in all GSB factories to prevent ‘lost hours’ at the start of the day.
  • Good agreements on planned shutdown times of installations between management and production.
  • Good agreements regarding breaks during the day.
  • Daily feedback in the morning consultation of the different GSB factories.
  • Better cooperation and planning coordination between technical management and production.
  • Better insight into the assessment and handling of invoices.
  • Better insight into the types, structure and application of existing contracts with suppliers.
  • Insight into payments that have not been agreed upon according to contract.
  • Better insight into the use of hours and materials by contractors when carrying out jobs at the GSB factories.
  • Savings of € 4 million on reducing lost hours and incorrect payments; savings of € 1.5 million through the internal tendering of large contracts to companies within the first year.
  • System for preserving the results achieved.

These impressive results have been achieved thanks to the systematic approach, training, and coaching of the Corus project team. And not to the least, thanks to the confidence that the PDM team managed to convey to Corus to achieve those results. The GSB Working Unit of Corus IJmuiden has optimally benefited from the good relationship with PDM.

M. Mookhoek
Manager IBO, Corus

The PDM team gave us the confidence to achieve impressive results.


  • Share this page