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