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BS/021110/SH-SG(2000GB)第六階段工作成果報告文件機(jī)密January15,2003此報告僅供客戶內(nèi)部使用。未經(jīng)麥肯錫公司的書面許可，其它任何機(jī)構(gòu)不得擅自傳閱、引用或復(fù)制。ImproveHRM’sproductquality,OEEandstabilitywithleanmanufacturingBS/021110/SH-SG(2000GB)1ExecutivesummaryUndertheleadershipofBaosteelleanmanufacturingsteercommittee,HRMhasachievedsignificantoperationimprovementduringthesixmonthpilotperiodwithgreateffortsfromdepartmentsinsideandoutsideHRM.HRMhasgreatlyincreaseditsOEEthroughtheimprovementeffortsinquality,rollchangeandmaintenance.Inaddition,sixlongtermkeyqualityproblemsallimprovedinpilotperiod.Moreimportantly,HRMhasgraduallybuilditsoperationalimprovementcapabilitiesthroughoutthepilotingprocess.LeantoolsandimprovementmethodswerewidelyusedinHRMinsolvingproblems.Moreover,leanandsixsigmatoolswerecombinedinsolvingsomequalityproblems.Inordertosustainthepilotresultsandensurethecontinuousimprovementefforts,HRMalsomadechangesinitsperformancemanagementsystemandbeguntheimplementationsincebeginningofthisyear.HRMhassetclearoperationaltargetsfor2003tofurtherimproveproductqualityandOEE,mainlythroughcontinuousimprovementinmaintenancetime,productqualityandspeedloss.BasedonthesuccessofHRMpilot,Baosteelshouldquicklydesignandrolloutanoperationalimprovementprograminordertobetterpositionedforfuturechallenges.ThisoperationimprovementprogramwillmainlyconsistaseriesofimprovementprojectscarefullyselectedbasedonBaosteelownbusinessstrategyandfinancialgoals.Astandardproblemsolvingapproachwillbeusedcompanywide,withsixsigmatoolsinqualityproblems,andleantoolsinotheroperationproblems.Atsametime,thoseimprovementprojectswouldprovideatraininggroundforagroupofBaosteelownimprovementexperts.ESIwillbeplayamajorroleindrivingthisoperationimprovementprogramforward,McKinseycouldprovidemanyformsofsupportbasedontheneedofBaosteelandrolloutprogress.BS/021110/SH-SG(2000GB)2AgendaHRMLeanPilotProgressOverviewBaosteelOperationalImprovementRollOutPlanBS/021110/SH-SG(2000GB)3OEE*20012002(Jan~Jun)2002(Jul~Dec)20012002(Jan~Jun)2002(Jul~Dec)15802050BefPilotAftPilot*:速度損失假設(shè)保持2001水平，年修時間按年修周期分?jǐn)傆嬎鉌inancialimpactrealizedthroughpilot10,000RMBRollchangeMaintenanceQualityTotalIfimprovementachievedcouldbesustained,theannualizedimpactis150millionRMBHRMhassignificantlyimproveditsOEEandrealizedsignificantsavingthroughleanpilotBS/021110/SH-SG(2000GB)474.553SIGNIFICANTIMPROVEMENTSCAMEFROMPRODUCTQUALITY,MAINTENANCEANDROLLCHANGERidgecoldrollingdowngrade

（1580）tonJan-Jul,2002averageAug-Dec.2002AverageScalehotrollingfinallock-out（2050）tonJan-Jul,2002averageAug-Dec.2002AverageWidthhotrolllock-out

（1580）coilJan-Jul,2002averageAug-Dec.2002AverageFoldingedge/edgedamagetemplock-out（2050）%Jan-Jul,2002averageOct-Dec.2002AverageRollingcracktemplock-out（1580）%Jan-Jul,2002averageOct-Dec.2002AverageThicknessprecision（2050）%Jan-Jul,2002averageOct-Dec.2002AverageWorkrollchange(minutes)1580Currentlevel（Verystable2050Maintenancetime:actual/plan15802050Target90%64.5Backuprollchange(hrs)MajorrollMinorroll158020505hrs/guide2.2hrs/guide1580FMentryguideInitialdowntimeExpecteddowntimeafterimplementation4.7hrs3.2hrsUnplannedbreakdownmaintenance-55%InitialdowntimeExpecteddowntimeafterimplementation2050F?RollingMillTarget90%6/187/167/278/138/279/119/2410/910/2211/512/312/136/287/107/248/78/219/49/1810/811/1110/3011/20-30%-60%-49%-24%-32%+1%-67%BefAftBefAftBefAftBS/021110/SH-SG(2000GB)5Throughthepilot,HRMemployeesmasteredleantoolsandmethodsandHRM’scapabilityisstrengthenedLeantoolsRollchangeSMEDVisualmanagementStandardizedworkWasteeliminationKaizenParetoanalysis

Maintenance5SSMEDWasteeliminationKaizenVisualmanagementParetoanalysisPFMEA/FMEAQualityStandardizedworkWasteeliminationKaizenParetoanalysis

VisualmanagementPFMEA/FMEACorrelationanalysisUsedoneveryworkingrollandbackuprollchangeUsedineverymaintenanceactivityUsedbysixqualityteamsSystemicproblemsolvingapproachSuccessfullyimplemented39improvementideasSuccessfullyimplemented46improvementideasSuccessfullyimplemented77improvementideasDatadrivenimprovementactivitiesPilotincentivesystemplayedimportantroleinencouragingactiveparticipationfromemployeesinHRMBS/021110/SH-SG(2000GB)6HRMDESIGNEDAPERFORMANCEMANAGEMENTSYSTEMTOHELPSUSTAININGPILOTRESULTSANDENSURECONTINOUSIMPROVEMENTSelectkeyperformanceindicatorsSettargetDevelopactionplanPerformancedialog

andconsequencemanagementDesignKPIsfor163positionsinHRMSetKPIweightforall163positionsSetKPItargetvaluesforall163positionsIllustrationofKPIs,theirweightandtargetvalues,explanationofKPIs,calculationmethod,unitandresponsibleofficestocalculateKPIsDesignedanactionplantemplateandeachdepartmentwilluseittodevelopdetailedactionplanstosupportdivisionKPIsHeldtwoperformancedialogmeetings,optimizedmeetingcontent,formatandprocess.Themeetingwillbeheldeverymonthfromnowon.Designedadraftbonusdistributionplanbasedonperformance.Implementationwillbeginthisyear.BS/021110/SH-SG(2000GB)7AgendaHRMLeanPilotProgressOverviewQualityimprovementRollchangeMaintenancePerformancemanagementHRMrolloutplanBaosteeloperationalimprovementrolloutplanBS/021110/SH-SG(2000GB)8HRMhasmadegreatprogressinallthreequalityproblemsinitiatedinJulyFinancialimpactrealizedthroughpilot3.76million2,074821RidgeCRMdowngradeTon/month2002Jan~Jul2002Aug~Dec-60%Target*1,20015196148WidthHRMlockoutCoil/month-24%Target*159150.56million1,512776ScaleHRMFinalLockoutTon/monthTarget*5579-49%1.1millionNumberofideasimplemented2002Jan~Jul2002Aug~Dec2002Jan~Jul2002Aug~Dec *Targetsetbasedbest3-monthmovingaverageinlast18monthsBS/021110/SH-SG(2000GB)9ThreequalityproblemsstartedfromOctoberalsoshownsignificantimprovement *Targetsetbasedbest1monthinlast18monthsNone,butcouldhelptofurtherstrengthenitsleadingqualitystatusinChinamarket0.68%0.46%Rollingcracklockout%Target*0.45%16-32%0.69%0.23%Foldingedge/edgedamagelockout%Target*0.49%12-67%96.1%97.1%Thicknessprecision%Target*97.5%10+1%0.37million0.23millionFinancialimpactrealizedthroughpilot2002Jan~Sep2002Oct~DecNumberofideasimplemented2002Jan~Sep2002Oct~Dec2002Jan~Sep2002Oct~DecBS/021110/SH-SG(2000GB)10Atsametime,HRMismoreandmorewidelyapplying6-stepprocess#ofqualityproblemssolvedviasixstepapproach個Peopletrained人Improvementideasimplemented個37Problemdefinition1Brainstorming2Prioritization3Developplan4Implementation5Evaluation68671314AllCoreBS/021110/SH-SG(2000GB)11WeeklyqualitymeetingwasprovedtobeveryeffectiveandgraduallybecamenorminHRMParticipantsMeetingobjective：Updatesonpastweek’smajorqualityproblems，reviewqualityteamweeklyprogressandprovidesupportifneededHRMvicemanagerandassistant1580and2050managerQualityteamleadersRelatedqualityteammembersProductiondepartmentandCRMQCTime：EveryTuesday(1580),Wednesday(2050)3：00~4：30pmAgendaReviewlastweek’splannedactionsDiscussthisweek’smajorqualityproblemsKeyproducts’qualityproblemssummaryReviewkeytechnicalparametersQualityteamprogressupdatesTime10mins20mins20mins10mins30mins

BenefitsParticipationandattentionfrommanagementcouldenergizequalityteam’swork,andalsoprovideneededresourcesquicklyStandardizedreportingformatimprovecommunicationefficiencyWeeklyreviewreducedthepossibledelayofproblemsolvingBS/021110/SH-SG(2000GB)12Through6pilotproblems,HRMhasformedeffectivecross-functionalcooperationmechanismforqualitymanagementandimprovement

TeammemberHRMManagers/assistants1580/2050managerOperatorrollinglineLinemanagerequipmentQCtechnologyothers加熱粗軋精軋卷取加熱粗/精軋/卷取機(jī)械電氣儀表加熱粗軋精軋卷取1580Width：姚士杰1580Scale：劉獻(xiàn)東1580Rollingcrack：孟文旺2050thickness：楊曉臻2050scale：何國軍2050卷形小組：唐文勝冷軋、技術(shù)中心、制造部技術(shù)中心冷軋質(zhì)檢Teamleader TeamleaderisresponsiblefortheresultsandcoordinationEngineersinHRMneedtoanalyzequalityproblemsandhelptosetimprovementplansandactualimplementationsOperatorshelpwithimplementationsLinemanagersneedtomakesurethattheactionplanswerefollowedEquipmentandtechnologydepartmentprovidesupportBenefitsQualityteamleaderensurecontinuityofproblemsolingandaccumulationofknowledgeCrossfunctionalparticipationensuresexclusivenessofproblemsolvingBS/021110/SH-SG(2000GB)13Crossdepartmentcollaborationalsobeguntohappeninsolvingridge,widthandscaleproblems1580Ridge2050Scale1580widthIssuesCrossdepartmenteffortsColdrollingstandardforidentifyingridgedefectarechangingconstantlyduetomarketconditionandcustomerdemandSomehotrollingcoilscouldnotfitintocoilopenerin1420duetowidertailandhastoberepairedfirstineither1580or1420Coldrollingdefinitionforscaledefectisdifferentfromholdrollingmill,50%ofscaleinCRMisactuallyhotabrasion.AcrossdepartmentmeetingwasledbyproductiondepartmentwithparticipantsfromHRMandCRMActiveinteractionhappenedbetweenengineersinHRMandCRMNewstandardforridgedefectwassetupinCRMwhichisconsistentwithHRMAcrossdepartmentmeetingwasorganizedwithparticipantsfromproductiondepartment,marketingdepartment,HRMandCRMProductionplanwerere-arrangedtoensurethosecoilsweresentto1550Threecrossdepartmentmeetingswereorganizedwithparticipantsfromproductiondepartment,technologycenter,HRMandCRMStartingfromJan.1,2003,CRMwillintroducefournewscaleidentificationcodestofurtherdifferentiatedifferentscaledefectsNextstepistodevelopBaosteelowncrossdepartmentproblemsolvingmechanismandrolloutcompanywideBS/021110/SH-SG(2000GB)14PROBLEMSOVINGFORNEWPROBLEMSNEEDTOBEGRADUALLYROLLEDOUTINYEAR2003TOENSUREFOCUSJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC1580RidgeWidthRollingcrackThicknessCoilingshapeScaleTemperatureHolesAbrasionOtherqualityproblems2050ScaleThicknessFoldededge,edgedamageOthercoilingshapeRollingcrackWidthTemperatureAbrasionHairdamageOtherqualityproblemsBreakthroughphaseContinuousimprovementBS/021110/SH-SG(2000GB)15AgendaHRMLeanPilotProgressOverviewQualityimprovement

RollchangeMaintenancePerformancemanagementHRMrolloutplanBaosteeloperationimprovementrolloutplanBS/021110/SH-SG(2000GB)162050/1580

WORKINGAVERAGEROLLCHANGETIMEREDUCEDMORETHAN30%2050Averageworkingrollchangetime（Mins）Financialimpactrealizedduringpilotisabout41.8millionRMBmin1580Averageworkingrollchangetime（Mins）

min-36%min-33%BS/021110/SH-SG(2000GB)172050/1580BACKUPROLLCHANGETIMEWASUNDERPILOTTARGET2050Backuproll1580BackuprollTarget270minTarget25minTarget170minTarget75minPreparationChangingrollRecoveryTotal245337*168160150*60min270minmin15minmin195minmin60minPreparationChangingrollRecoveryTarget10200**190***170201215013512040353812/312/1012/1912/312/1012/1912/312/1012/1912/312/1012/1912/212/18172712/212/1812/212/1812/212/18*12月18日大換輥恢復(fù)階段設(shè)備調(diào)整同時粗軋故障耽誤50min。**12月3日F4,F6沒有更換；12月10日F1~3沒有更換BS/021110/SH-SG(2000GB)18Rollchangeteamgenerated40improvementideasandimplementedmostofthemduringthepilotperiod(1/2)BS/021110/SH-SG(2000GB)19已定稿，需審批Rollchangeteamgenerated40improvementideasandimplementedmostofthemduringthepilotperiod(2/2)BS/021110/SH-SG(2000GB)20ManyimprovementideasbecamestandardoperatingprocedureduringthepilotperiodBackuprollchangeSupportingplateimprovement（Internaljobtoexternaljob）ChangestorageplaceofsupportingplateRollgrindingshoppreparerollinadvancePreparecraneinadvance1Cooperationwithrollgrindingshop（reduceinternaltime）2Others（reduceinternaltime）3PlacesupportingplatebesidesrollingmillbeforerollchangeReducerollpreparationtimeSupportingstaffassistReducesupportingplatechangeOptimizedbackuprollchangemethods（SOPs）舉例BS/021110/SH-SG(2000GB)21AgendaLeanPilotProgressOverviewQualityimprovement

Rollchange

MaintenancePerformancemanagementHRMrolloutplanBaosteelrolloutplanfor2003BS/021110/SH-SG(2000GB)223WORKSTREAMSAREWORKINGONMAINTENANCEONAHOLISTICWAYGenerateideausingprocessintroducedformonthlymaintenanceefficiency–applyingittobreakdownefficiencythistimeMonthlymaintenanceefficiencyimprovementStabilizeresultsandpracticesIdeasandnewprocesshavebeenimplementedNoSOPandprocessstillnotstrictlyfollowedNeedtodevelopSOPandimprovedskillonnewprocessMovetowardcontinuousimprovementandachieve2003targetbygeneratingmanymoreideasonexecutionphaseEquipmentstrategyTrainteamonequipmentstrategy(FMEA)approachProveapproachhasimpactbyapplyingapproachanddevelopingimprovementactionplanon2selectedpilotequipmentsPlanrolloutofapproachtoallequipmenttomeetlongtermtargetRepairefficiencyimprovementActual/planPlanExpectedbreakdown*RepairefficiencyAnnualmaintenanceMonthlymaintenanceBreakdownTotalmaintenancetimexx+ * Breakdownsnotyetstudiedbyequipmentstrategyorthatcannotbeeliminated Source: TeamanalysisImprovementrealizedduringpilotisamountto13millionRMBTheopportunityidentifiedon2pilotequipmentisaround3~5millionRMBeachBS/021110/SH-SG(2000GB)23TEAMHASACHIEVEDANDISMAINTAININGA10%IMPROVEMENTONACUTAL/PLAN Source: Phase1trackingsoftware,teamanalysis2050actualmaintenancetime/plan*1580actualmaintenancetime/plan*12/628/610/724/77/821/84/918/98/1030/10EndofbreakthroughperiodFirstscheduleExpectedimpactofimplementedideasreach10%Newplanning&schedulingprocessfollowed%18/616/727/713/827/811/924/99/1022/10FirstscheduleExpectedimpactofimplementedideasreach10%Newplanning&schedulingprocessfollowed%Target90%Target90%11/11Startofbreakthroughperiod11/5EndofbreakthroughperiodStartofbreakthroughperiod11/2012/3BS/021110/SH-SG(2000GB)24HRMmaintenancepilotteamusedmanyleantoolstoreachpilottargetMinutes/yearEliminateoutsidejobsofkeystepsEnhanceinsideprocessofkeystepsIncreasecommutationefficiencyUseworldclassplanandschedulingExpectedsavingTheobjectiveofpilotistoformasolidfoundationfor“baosteelmaintenancesystem”BetterpreparationCommunicationOptimizedprocessWorldclassplanningandschedulingEquipmentstrategySMED

Source: teamanalysisAlreadyimplementedBS/021110/SH-SG(2000GB)25NewplanningandschedulingprocedurebroughtmanychangesinmaintenanceprocessFrom…PlandeliveredtocontractorsFridayafternoonbeforemaintenance(1to2businessdayinadvance)Lackofinformationonsomeresources:spareparts,toolsNoadvicefromtechniqueteamofnecessityandpriorityofgenerateditemsTo…Plandeliveredtocontractors4businessdayinadvanceAllresourcesclearlydefineforalljobsinplantransmittedtocontractors.TheplanispreparedbycontractorandmaintenanceteamtogetherReviewplanandgivesitsadvicetoheadofequipmentofficetechniqueteamPlanningSomejobsarescheduledwithouthavingbeingplannedNoformalscheduledocumentshowingtheagreedtimingandresourceallocationtocriticalpathandhighpriorityjobsManylastminutebreakinsAlljobs,evenlastminutebreakins,mustbeplannedMainoutputofschedulingprocesswillbeadocumenttobeusedduringshutdownLimitnumberoflastminutebreakinsbylockingdownschedule24hoursinadvanceandhavingstrictrulesforacceptingbreakinsSchedulingInformalprogresstrackingduringshutdownContractionsdoesn’tparticipateininternaldebriefmeetingaftershutdownNoformalsolution/ideagenerationprocesstoensurelessonslearnedFormaltrackingusingthedefinedscheduleandvisualmanagementDebriefmeetinginvolvingallparties(operator,contractor,maintenanceteam)DebriefmeetinghasclearagendaandideagenerationprocessMonitoringBACDEFGHISource: TeamanalysisBS/021110/SH-SG(2000GB)26`Meanwhile,HRMimprovedintheareaofplanning&scheduling

Source: Teamanalysis ListofitemstobemaintaineddeliveredontimeRespectofdeadlinesPlantemplateusedforalljobsQualityofplanAlljobsareinscheduleOptimizedschedulePoorBestpracticeTrackingdonecorrectlyduringshutdownCareful

monitoringInspectorsandcontractorsdevelopplantogetherFullinvolvementandparticipationBalancemeetingagendafullyfollowedEfficientbalancemeetingOctoberaverageNovemberaverageHRMcouldfurtherincreaseitsoverallplanningandschedulingskillsthroughsystemictrackingandevaluationofpreparationandplanningforeachmaintenanceactivityDraftlocationsheetreadyontimePlanapprovedontimePlancommunicatedtocontractorontimeMaintenanceschedulereadyforbalancemeetingFinalschedule&locationsheetreadybeforeshutdownPlantemplatefilledincompletelyAllitemsofplanningchecklistcanbecheckedCriticalpathhasbeenidentifiedSequenceofjobsoptimizedtoreducecriticalpathNooverlapofresourcesAlladditionalitemsareplannedandscheduledDebriefmeetingagendafullyfollowedRootcauseproblemsolvingconductedindetailsBaosteelplannerfacilitateallmeetingsContractorsparticipateindebriefmeetingBS/021110/SH-SG(2000GB)27PILOTANALYSISON1580FMENTRYGUIDEDEVELOPEDSOLUTIONSTOREDUCEDOWNTIMEBYMORETHAN50% Source: TeamanalysisFinancialimpactRMB~300,000savedperyearperentryguideSummaryof1580FMentryguideanalysis18solutionsgenerated165minutesperyeardowntimereductionInitialinvestmentofRMB22,000Annualcostof

RMB28,000MinutesperyearperentryguideInitial

equip-

mentdowntimeEquip-

mentredesignImprove

main-

tenance

practicesChangeoperationpracticesOptimizeprimaryactionsImprovesparepartsqualityFutureequip-mentdowntime-55%BS/021110/SH-SG(2000GB)28PILOTANALYSISON2050F1ROLLINGMILLDEVELOPEDSOLUTIONSSHOULDREDUCEDOWNTIMEBY30%Annualsaving515,000RMBSummaryof2050F1ROLLINGMILL

analysisGenerated8improvementideas85minutesperyeardowntimereductionAnnualcostincrease84,166RMBNoonetimeinvestmentMinutesperyearperentryguide 資料來源:小組分析

Initial

equip-

mentdowntimeEquip-

mentredesignImprove

main-

tenance

practicesChangeoperationpracticesOptimizeprimaryactionsImprovesparepartsqualityFutureequip-mentdowntime-30%BS/021110/SH-SG(2000GB)29TeamalsohelpedHRMtodesignequipmentstrategyprocessBreakdownequip-mentintofunctionalcomponentsandmaintainableitemsIdentifykeyfailuremodesforeachmain-tainableitemusingWorkordersMaintenancerecordsOperator,maintainer,engineerandplanneropinionsEstimatethefrequencyandcost

ofprimary,secondaryandbreakdownmaintenanceforkeyfailuremodesCollatefactbaseCalculatemeantimebetweenfailure(MTBF)andproblemfailure(P-F)intervalPrioritisefailuremodesforsubse-quentinvestigationbasedontotalmaintenancecostDeterminerootcauseforeachkeyfailuremodeGenerateandprioritiseideastodesignoutcriticalfailuremodesEstimatetheannualsavingsandcapitalcostofhigh-potentialredesignideasUpdatefactbasetoaccountforsavingsandchangeinactionsfromredesignideasStrategyoptimizationinvolvesfindingtherightandfrequencyofprimaryactionDetermineappropriateprimaryactionUseMTBFandPFtoselectoptimalfrequencyofprimaryactionandcalculateresultingbreakdownandsecondaryUpdatefactbasePrioritiseequipmentforinvestigationbasedonthequantifiablesavingspotentialandqualitativefactorsBuildafactbaseIdentifyredesignopportunitiesCollectandevaluateredesignideasOptimisestrategiesforremainingfailuremodesPrioritiseequipmentImplementationsandanalysisrolloutmonitoringfeedbackPlanimplement-actionofallideas,assigningoneresponsibleanddefiningmilestonesMonitorImplementationofideasEvolutionofactualresultsProgressofanalysis

roll-outDiscussissuesandtakecounter-measuresDiagnosisAnalysisImplementation Source: McKinseyBS/021110/SH-SG(2000GB)30ANDTEAMHASBEENEXTENSIVELYTRAINEDONEQUIPMENT

STRATEGYMETHODOLOGYKeyconceptsPeopletrained3teammembersEquipmentstrategyimprovementprocessFMEAanalysis/factbasebuilding3teammembers10inspectorsRootcauseproblemsolving(includingissuetreeandfishbonediagram)3teammembers10inspectors2operatorsStrategyoptimization(settingtherighttypeandfrequencyofprimaryaction)usingPFandMTBF3teammembers4inspectors Source: TeamanalysisBS/021110/SH-SG(2000GB)31THETEAMSELECTEDKEYEQUIPMENTSFOREQUIPMENT

STRATEGYROLLOUTFOR2050 * Conservativeestimate:Pilotshowedhigherdowntimereductionpotentialof54% ** BetweenJanuaryandSeptember2002Source: Breakdowndatabase;teamanalysisEquipmentDowntime**HoursNumberofbreakdowns**Potential

impactCommentsGrolltablePinchrollapparatusFMentry-exitguideFMhydraulic

pressuresystemR3RMLoopdeviceF1RMF2RMFMGaugemeterR1RMR2RMNo.1coiling

machineFMprocessorF4RMF5RMF3RMF6RMCropShearRMsideguideR4RMSimpleequipment,manysimilaritemsMostlywastesteel,noequipmentbreakdownMechanicalproblems(alreadydone

for1580inpilot)InvolveshydraulicandelectricalproblemsMostlyelectroniccontrolproblemsMinormechanicalproblems,mostlyelectricalMechanicalproblems(pilotequipment)Mechanical,someproblemsuntilAprilduetorestructuringofmachineOwnedbyequipmentdepartment50%ofproblemsarewastesteelComputersystemowned

byequipmentdepartmentMostlyelectricalfailuresUsuallyfewfailures,1bigproblemin2002MostlyelectricalfailuresMostlyelectricalfailuresMechanicalproblems90Selectedequipment

forroll-out

Selectedequip-mentforpilotandroll-outaccountsfor62%ofdowntimeAssuming40%*downtimere-ductionforhigherpotentialimpactequipment,theroll-outshouldenabletoreducedowntimeby26%(targetis28%)

2050BS/021110/SH-SG(2000GB)32THETEAMSELECTEDKEYEQUIPMENTSFOREQUIPMENT

STRATEGYROLLOUTin1580EquipmentNumberofbreakdowns**Potential

impactCommentsOperatorrelatedfailuresR2RMFMentry-exitguideFMfailures(undefined)CropshearRdescalingmachineF3RMPinchrollingsystemFurnaceentryrolltableFMdescalingmachineSProllingmillCrowninstrumentF1RMCoilingmachineF2RMF6RMFMloopsystemCoilerconveyingrolltableFMconveying

rolltableConveyingchainNonrelatedtoequipmentMechanicalfailures,longshutdownAlreadydoneinpilot(54%downtimereduction)NotclearlydefinedindatabaseMainlyinstrumentsandelectricalfailuresMechanicalfailureMostlyelectricalfailureMostlymechanicalfailureElectricalproblemsMostlymechanicalproblemsComputerfailureMechanicalMixofelectricalandmechanicalfailureOnlyelectricalproblemsRunningtableproblems,mechanicalMostlymechanicalfailureMinorelectricalandmechanicalfailuresSelectedequip-mentforpilotandroll-outaccountsfor47%ofdowntimeAssuming40%*downtimere-ductionforhigherpotentialimpactequipment,theroll-outshouldenabletoreducedowntimeby22%(targetis17%)

64130Downtime**Hours * Conservativeestimate:Pilotshowedhigherdowntimereductionpotentialof54% ** BetweenJanuaryandSeptember2002Source: Breakdowndatabase;teamanalysisSelectedequipment

forroll-out

1580BS/021110/SH-SG(2000GB)33THETEAMDETAILEDAROLL-OUTPLANFOR

EQUIPMENTSTRATEGYANALYSISPRELIMINARYPilotteamEquipmentOctNovDecJanFebMarAprMayJunJulAugSepOctDecFMentryguide(1580)F1rollingmill(2050)FMentryguideFMhydraulicpressuresystemLoopdeviceGrolltableF2RMR1RMR2RMF4RMF5RMF3RMF6RMCropshearF1RMRdescalingmachineF3RMPinchrollingsystemFurnaceentryrolltableFMdescalingmachineSProllingmillR2RMCoilingmachineF2RMF6RMFMloopsystem2050team1580teamNov Source: Teamanalysis20022003BS/021110/SH-SG(2000GB)34ACLEARTEAMORGANIZATIONISREQUIREDTOENSURE

PROPERANALYSISROLL-OUTANDIMPLEMENTATION(2/2) Source: TeamanalysisEquipmentstrategyTeamleaderMr.Jian(100%)1580analysisteamMr.Jian(–)Mr.LiFengxin(100%)4inspectors(30%)1-2operators(10%)2050analysisteamMr.LiHaidong(100%)1newteammember(100%)4inspectors(30%)1-2operators(10%)ImplementationteamActualsmonitoringMr.Wu(10%)Mr.Liu(10%)Design2-3engineers(100%)ImplementationContractors(?)Planner(toupdatecomputersystemwithchanges)(10%)Assistant(100%)TeamdirectorMr.Tan(10%)BS/021110/SH-SG(2000GB)35AgendaLeanPilotProgressOverviewQualityimprovement

Rollchange

Maintenance

PerformancemanagementHRMrolloutplanBaosteelrolloutplanfor2003BS/021110/SH-SG(2000GB)36HRMDESIGNEDAPERFORMANCEMANAGEMENTSYSTEMTOHELPSUSTAININGPILOTRESULTSANDENSURECONTINOUSIMPROVEMENTSelectkeyperformanceindicatorsSettargetDevelopactionplanPerformancedialog

andconsequencemanagementDesignKPIsfor163positionsinHRMSetKPIweightforall163positionsSetKPItargetvaluesforall163positionsIllustrationofKPIs,theirweightandtargetvalues,explanationofKPIs,calculationmethod,unitandresponsibleofficestocalculate