Improvement of throughput and profitability using dynamic modeling in the steel coil industry

Initial situation

A global manufacturer of stainless-steel coils aimed to increase throughput and profitability at its U.S. plant
A difficult market forced low prices, resulting in disappointing EBITDA results despite increased production volumes
Management had a strong paradigm to increase volume and focus primarily on OEE
Lack of alignment between sales and operations prevented improvements in pricing and product mix
A holistic approach supported by a digital twin was required to achieve significant improvements

0 %

Throughput at the bottleneck increased

0 %

Profitability increased

Green and Black Belts trained

Perform value stream design and build a digital twin
Record actual status, define target status and simulate future process performance using dynamic modeling and increase throughput at the bottleneck
Implement kaizen to reduce complexity
Define stock levels for raw material and replenishment logic and implement slab supermarket
Define coil sequence and production planning logic
Coordinate implementation plan with buy-in from managers and employees and validate financial benefit estimate with Controlling

Improving stock turnover and the speed of the supply chain

Ensuring acceptance and engagement through a collaborative approach to strategy development

Accelerating the supply chain through a value stream-oriented target vision in stainless steel processing

Ensuring the predictability of an S/4HANA transformation through a business-oriented preliminary project

All cases

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