Deploying Lean Six Sigma Methodologies in the Aluminum sector

Page 1

07 Deploying Lean Six Sigma Methodologies in the Aluminum sector


Deploying Lean Six Sigma Methodologies in the Aluminum sector

Deploying Lean Six Sigma Methodologies in the Aluminum sector

Over the past 10 years, Mr. Khwaja Moinuddin, certified Six Sigma Master Black Belt, has implemented numerous continuous improvement (lean six sigma) projects in manufacturing and logistics industries in US. He has worked with people at all levels from shop floor to senior management and trained them on continuous improvement methodologies. He has been invited to give lectures in Universities in Middle East and Asia on continuous improvement methodologies and change management specific to CI. He has also been invited to give expert advice on lean six sigma change management in manufacturing conferences in Asia and has also published technical papers in specific journals in US (Journal of cost management). Today, Mr. Khwaja Moinuddin, head of excellence at GARMCO, is sharing with Frederic Gomer, partner at B2G Consulting, his deep insights on the challenges in instilling a Lean culture in a GCC company with the related specific constraints.

In few words, please describe your company

GARMCO produced its first 20,000 tonnes of

activity?

rolled aluminum in 1986.Today, GARMCO is

Gulf Aluminum Rolling Mill Co. (GARMCO) was

the largest downstream aluminum facility in

formed in 1981 following a decree issued by

the Arabian Gulf region and our success is

His Highness the Late Amir of Bahrain, Sheikh

complemented by the continued success of our

Isa Bin Salman Al Khalifa undertaken together

close neighbor, ALBA.

with the governments of Saudi Arabia, Kuwait,

The original GARMCO facility had an annual capacity of 40,000 tonnes. Through equipment

Iraq, Oman, and Qatar.


Industry Insights Mr. Khwaja Moinuddin, Head of Excellence Gulf Aluminum Rolling Mill Co.

enhancement, this increased to 70,000 tonnes

are not well coordinated together and operate

by 1990. GARMCO then invested in a second

relatively concurrently. Each function has its

cold-rolling mill and related facilities, resulting

own objectives, performance indicators and

in the current annual capacity of 125,000 ton-

incentives, which does not really reflect yet the

nes. A further update of the facilities was done

end-to-end supply chain that we are all striving

in 2004 to raise the capacity to 145,000 ton-

for.

nes. In 2005 another fine tuning on the existing equipment was carried out to reach a capacity

What was your biggest challenge in supply

of 165,000 tonnes.

chain at GARMCO?

A foil mill installation with a capacity of 10,000 tonnes commenced in 2000 and upgraded to 20,000 tonnes. In 2006 a new initiative to also

“Each function has its own objectives, performance indicators and incentives”

upgrade it to 35,000 tonnes.

Coming from a lean six sigma culture, the challenge I encountered at GARMCO was to shift the company culture to a highly controlled and disci-

plined environment. The syndrome of the ‘burning platform’ that I like to recall is missing

Could you please give an overview of the sup-

in the Middle East, where there is no sensation

ply chain at GARMCO?

of the fire approaching, so we do not feel

The supply chain at GARMCO is a fairly new

forced to over perform. This metaphor illus-

concept, as the company has been manufac-

trates the lack of strong competition in the

turing-driven from its inception. Consequently

region (for the moment), that does not help

its Supply Chain is still organized in silos where

companies to push the envelope.

all functions such as procurement, production,

Besides the cultural aspect, one of the biggest technical challenges that we are facing is

shipping (and also technical quality or finance)


Deploying Lean Six Sigma Methodologies in the Aluminum sector

Deploying Lean Six Sigma Methodologies in the Aluminum sector related to capacity planning. Planning is a diffi-

but it is a real problem in the whole Middle

cult discipline and it involves more than just

East region. At every level, from operational to

our internal environment. In fact, customers

strategic, we can hardly find the right candi-

and suppliers are also fully part of this critical

dates who fit our business requirements.

process. Specifically as our model is based on a

As this discipline is still emerging, we cannot

make-to-order basis, we really need the col-

expect a knowledge transfer from our more

laboration of our business partners to improve

experienced staff to the new hired, so we need

the accuracy of our forecasting tools, which is

to provide training from external firms to inject

the cornerstone of our planning process. From

basic knowledge in supply chain management

that point, we will be able

inside the company.

“We have recently launched a ity planning tool once the What are the skills the cross-functional audit with my quality of the information most lacking? How does team� gathered is enhanced. Oththe Company overcome to work on a better capac-

erwise, the accuracy of the resulting forecasts

this challenge?

will be still biased.

We have recently launched a cross-functional audit with my team that covers Supply Chain,

Regarding manpower in general and specifi-

Operations, Maintenance and Finance. So far,

cally in Supply Chain Management, what are

we have reached the conclusion that in a

the challenges that you are currently facing?

strong manufacturing environment, we need

We are clearly facing difficulties to recruit

more staff with an engineering background to

qualified people in supply chain management,

be more at ease with lean 6 sigma concepts

especially those with end-to-end expertise.

and tools.

This major issue is not only limited to GARMCO

On the purely supply chain side, planning is


Industry Insights Mr. Khwaja Moinuddin, Head of Excellence Gulf Aluminum Rolling Mill Co.

critical and requires qualified professionals to

not occupied. Obviously, Training will have to

run the forecasting process that feeds the

play a center role in the success of this long

planning function with timely and accurate

transition, but the effort will definitely worth

information.

the great benefits in the long run.

How is the level of Education in SC in UAE /

According to you, what is the future outlook

Dubai? According to you, what is the future

for the supply chain workforce in the region?

outlook for the supply chain workforce in the

Major changes can only occur in very challeng-

region? How does the Bah-

“Bahrainization should be ing environment, so unless rainization impact your we release our self from the seen as a great opportunity to operations? confinement of the relaBahrainization should be empower the workforce in tively protected conditions seen as a great opportunity in the Middle East market, Bahrain. ” to empower the workforce the transformation will be in Bahrain. Generally speaking, supply chain

slow. To a certain extent, a fierce competition

resources are scarce in the region, and to sus-

helps companies and individuals to outperform

tain a long term functioning situation, compa-

their own capability limitations. I believe that

nies should come up with local solutions. Bah-

we need to have this “burning platform” to

rainization will help companies to realize that

trigger the necessity to make the required

they are able to tap in the unexploited local

drastic changes to compete at a global scale.

workforce to fulfill positions that are virtually


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.