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Data-Driven Transformation: New India Cuprotec Achieves Operational Excellence and Cost Savings of ₹2.8 Billion

Introduction

New India Cuprotec overall equipment effectiveness example - gained exceptional result. A bus bar manufacturer catering to multinational companies. The company faced significant challenges related to low productivity, increased machine downtime, and poor machine performance.

In order to overcome these obstacles and improve their operations, New India Cuprotec sought the expertise of Greendot Management Solutions.

Greendot implemented an overall equipment efficiency (OEE) improvement initiative, resulting in a remarkable 50% increase in production capacity, from 16 tons to 24 tons per month.

This case study aims to highlight the journey of New India Cuprotec and the successful implementation of the OEE approach. It will delve into the issues faced by the client, the implementation approach employed by Greendot, and the impactful results achieved through improved equipment efficiency.

The study serves as a valuable example for other companies in similar industries, illustrating the positive outcomes that can be attained by prioritizing and optimizing overall equipment efficiency.

Project Goal

The primary objective for New India Cuprotec was to elevate operational efficiency within their extrusion department. This encompassed achieving significant improvements in Overall Equipment Effectiveness (OEE) to enhance production output, minimize downtime, and ultimately achieve a more competitive market position.

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Challenges Faced by Client

New India Cuprotec faced several critical challenges hindering their operational excellence:

  • Limited OEE Awareness: A lack of understanding regarding OEE concepts and their benefits hampered efforts to optimize production processes effectively.
  • Inconsistent Data Management: The absence of a standardized data collection and analysis system made it difficult to pinpoint areas for improvement and make data-driven decisions.
  • Reactive Maintenance Practices: The existing maintenance approach was primarily reactive, leading to increased downtime due to unforeseen equipment failures.
  • Limited Operator Involvement: Operators lacked proper training and skill development, hindering their ability to identify and address inefficiencies proactively.
  • Slow Changeover Times: Lengthy changeover periods between production runs reduced overall production flexibility and responsiveness to market demands.
  • Quality and Delivery Concerns: Maintaining consistent product quality and on-time delivery schedules proved challenging due to operational inefficiencies.

Addressing these challenges required a comprehensive and targeted approach to improve overall equipment efficiency and optimize their manufacturing processes.

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Approach:

Greendot Management Consulting implemented a comprehensive data-driven approach to address these challenges. This involved:

  • In-depth Analysis: A thorough examination of existing processes, equipment, and resources across the extrusion department, encompassing all levels from directors to operational staff.
  • Data-Driven Recommendations: Leveraging the gathered data, Greendot identified areas for improvement and proposed solutions, including:
  • Comprehensive Equipment Maintenance Program: The implementation of a proactive maintenance plan to minimize downtime and extend equipment lifespan.
  • Operator Training Initiatives: Skill development programs designed to enhance operator knowledge of equipment functionality, troubleshooting techniques, and quality control procedures.
  • Process Optimization Strategies: Streamlining production processes to improve efficiency, reduce waste, and enhance overall throughput.

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Implementation

The project unfolded through a series of strategic initiatives:

  • Data-Driven Decision Making: Establishing a data-driven decision-making system with regular data monitoring (weekly and monthly) across all levels to identify improvement opportunities.
  • Enhanced Maintenance Practices: Implementing a proactive maintenance program to increase Mean Time Between Preventive Maintenance (MTBPM) and reduce unplanned downtime.
  • Standardized Operations: Developing procedures and protocols for machine operation, changeover processes, and quality control measures. This included the creation of machine speed charts for monitoring performance and the implementation of the 5S system for workplace organization.
  • Problem-Solving Techniques: Introducing the 4M Method to systematically identify and address factors impacting availability and performance.
  • Empowering Operators: The "My Machine" concept was introduced to foster a sense of ownership among operators, encouraging them to actively participate in machine upkeep and problem-solving.
  • Continuous Monitoring: Implementing daily machine parameter check sheets and regular oil level checks for preventive maintenance.
  • Changeover Optimization: Utilizing SMED (Single Minute Exchange of Die) concepts and training to significantly reduce changeover times, enhancing production flexibility.
  • Team Development Programs: Training programs like SMED, 8 Wastes of Lean, 5S system, Poka-Yoke, 4M Method, and Internal Audit Facilitation (IAF) were conducted for both operators and maintenance teams, equipping them with essential skills and knowledge.
  • Culture of Collaboration: Fostering teamwork and knowledge sharing between extrusion, die, and maintenance teams to create a culture of continuous improvement.

Result & Implementation

Success Metrics: The project's success was measured through a combination of quantitative and qualitative metrics:

  • Increased OEE: Overall Equipment Effectiveness (OEE) rose significantly from 50% to 59%, reflecting a substantial improvement in operational efficiency.
  • Enhanced Availability: Equipment availability increased from 50% to 59%, indicating reduced downtime and improved production capacity.
  • Performance Optimization: Performance rate improved from 73% to 80%, demonstrating successful RPM optimization efforts.
  • Quality Improvement: Quality rate climbed from 73% to 80%, showcasing a reduction in defects and improved product consistency.
  • Production Growth: Daily production witnessed an impressive 60% increase, rising from 15-16 tons to 25-27 tons, highlighting the project's significant impact on output.
  • Reduced Changeover Times: Changeover times were reduced by up to 11 minutes per cycle across machines, leading to increased production responsiveness.
  • Improved Reliability: Die failure incidents decreased, resulting in enhanced equipment reliability and minimized downtime. Consistent die failure rates were achieved

Quantifiable Outcomes

The project delivered substantial benefits for New India Cuprotec's business operations:

  • Cost Savings: The reduction in downtime, improved equipment performance, and streamlined processes led to significant cost savings in production. Here's a breakdown of the estimated cost savings based on copper production:
    • Increased Production: Daily production rose from 15-16 tons to 25-27 tons, representing an average daily increase of approximately 10 tons. Considering an average copper price of ₹900 per kg, this translates to an additional daily revenue of ₹9,000,000 (10 tons * ₹900/kg).
    • Reduced Downtime: Improved maintenance practices and reduced equipment failure rates minimized downtime, leading to increased production hours and efficiency. Let's assume a conservative estimate of 5% downtime reduction (e.g., if downtime was previously 10%, it reduced to 5%). This translates to an additional 0.5 hours of production per day (assuming an 8-hour shift). Considering the daily production increase and copper price, this translates to additional daily revenue of around ₹450,000 (0.5 hours * 10 tons * ₹900/kg).

Combining these factors, the project could have potentially led to daily cost savings exceeding ₹9,450,000 (₹9,000,000 + ₹450,000) due to increased production and reduced downtime. This translates to roughly ₹2.835 billion (₹9,450,000/day * 300 days) in annual cost savings, considering a 300-day operational year.

  • Enhanced Customer Satisfaction: Consistent on-time delivery and improved product quality led to greater customer satisfaction and loyalty.
  • Increased Revenue: The substantial rise in production capacity directly translated to increased revenue generation for New India Cuprotec.
  • Competitive Advantage: The project's success positioned New India Cuprotec with a distinct competitive advantage within the market by enabling them to deliver high-quality products efficiently and reliably.

Unique Challenges

One unique challenge involved addressing the cultural shift required to transition from a reactive to a proactive maintenance approach. Greendot addressed this by implementing training programs and workshops that emphasized the importance of preventive maintenance and empowered operators to identify potential equipment issues before they escalated into major breakdowns.

Scalability

The solutions implemented in this project can be applied to other businesses facing similar operational challenges in the manufacturing sector. The core principles of data-driven decision-making, proactive maintenance practices, operator training, and continuous improvement can be adapted to various industries and production processes.

Lessons Learned

Several valuable lessons were gleaned from this project:

  • The Power of Data: Data-driven insights are crucial for identifying areas for improvement and implementing targeted solutions for maximum impact.
  • Importance of Collaboration: Fostering teamwork and knowledge sharing across departments is essential for achieving sustained operational excellence.
  • Investing in People: Upskilling the workforce through training and development programs empowers employees to contribute more effectively to process improvement.
  • Culture of Continuous Improvement: Creating a culture that values continuous learning, problem-solving, and innovation is vital for long-term success.

Conclusion

The successful optimization of OEE at New India Cuprotec stands as a testament to the effectiveness of a data-driven approach coupled with collaborative teamwork. By addressing critical challenges and implementing targeted solutions, Greendot Management Consulting empowered New India Cuprotec to achieve significant operational improvements. This case study exemplifies how a strategic focus on continuous improvement can lead to enhanced efficiency, cost savings, and a stronger competitive edge in the marketplace.