XYZ Limited

XYZ Limited

COMPANY 0VERVIEW

XYZ Limited is a group company of Vedanta Resources plc which is one of the world’s leading players in the field of Metal Production and is a London Stock Exchange listed FTSE10O Company.

XYZ Limited was incorporated from the erstwhile Metal Corporation of India on 10th January 1966 as a Public Sector Undertaking. In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for acquisition of shares of the company, consequent to the disinvestment of Government of India’s stake (26%) and acquire management control, further in pursuant to the regulations of SEBI Regulations 1997 acquired additional 20% of shares from public. In August 2003, Sterlite Industries acquired additional shares to the extent of 18.92% of the paid up capital from Government of India (G0l).

The demographic setup of HZL as on today includes Zinc and Lead mines located at Rampura Agucha, Zawar and Rajpura Dariba all in the State of Rajasthan, lndia. The smelter complexes are situated at Chanderiya and Debari in Rajasthan, and Vizag i n the State of Andhra Pradesh.

Highlights of HZL are quite inspiring and are going to further improve upon as against strategic planning the production capacity is going tobe increased to 1 Million Tonnes of Metal by the year 2010.

PROJECT SUMMARY

The average unloading hrs. for coal rakes at Chanderiya Smelting Complex during the period of May to June -08 is 8 hrs,incurring high demurrage to CPP which in turn increases the COP. This State of affair was not acceptable to the management and it was decided to carry out a Six Sigma Project to address this issue. It was worked out that bringing down the Rake Turn Around time to 5 Hrs reduces the, demurrage to such an extent that there will be annualized financial gain of 522.9 lacs against the allotment of TIELS scheme from Indian Railways.

During the course of the project it was identified that there were few opportunities of error such as 2

  •  Railway siding
  •  Railway lane
  •  Wagon tipper
  • Side Arm Charger
  • Coal Conveying system
  • Coal Size

 

The FMEA study helped us to identify the various failure modes and the following counter measures finally could bring out the desired change.

  • increasing the Ap ron feeder motor RPM & removing of rod in discharge chute.
  • Use of our loco engine for shunting of 7-10 wagons.
  • Shunting of_ last 14 wagons on lane no 1.
  • Reduction in cycle time in SAC & Wagon tipper.
  • Coal Procurement with size specs.
  • Deployment of two points men per rake.

The Financial Gain against first 5 Months of implementation of corrective actions was to the tune of 1.72 Crore.

PROBLEM STATEMENT

The average coal rake turn around time used to be 8 Hrs and this leads to heavy demurrage charges leading toincrease cost of operation of Captive power plant. Bringing it down to 4:45 Hrs amounts to a potential financial saving of Rs 522.9 Lacs on annualized basis.

PROJECT CHARACTERIZATION

Quality Function Deployment & Theme selection Matrix
To bring the cost of operation.

One of the strategic goals of the organization is to be a lowest cost Zinc Producer and Zinc Production operation is Power intensive thus it makes lot of sense to bring down the Cost of power generation.

Chanderiya Smelting complex (CSC) Management was viewed as the customer and customer CTQ was recognized as Reduction of Cost of Processing (COP).
Project Cl’ Q was Reduction of funds paid as demurrage on account of delay in Rake Unioading time.

BASELINE MEASUREMENT

As is process map is there as attachment-1. The 0FEs identified were as under:

Railway siding
Weigh Bridge
Railway lane
Wagon tipper
Side Arm Charger
Coal Conveying
Coal yard

Upper Specification Limit : 5:00 Hrs

Target : 4:75 Hrs

Lower Specification Limit : Not Applicable as Lower is better

 

Total Rake unloading hours are the total time taken by the unloading team for entire rake unloading‘ at wagon tippler and returning back the empty wagons (58-59) to Indian railways at CSC Siding area from the time of rake placement at CSC siding yard. Timer device situated at Weigh Bridge will capture the total time taken for rake turn around time.

This includes rake weighment through ln-motion Weigh Bridge, rake unloading at wagon tippler and shunting of empty wagons at siding yard.
GRR was not in picture however there was calibration of Automatic Timer Device. Refer Attachment—2
Unloading hours of all Imported & Indian Washery coal rakes from may-O8 is captured.
Data Collection is shown in Attachment-3
Mean 7.78 Hrs S.D 1.116 LCI 7.37 Hrs with Degree of Confidence as 95%
Refer Attachment—4 Capability Analysis

ROOT CAUSE DIAGNOSTICS

Refer Attachment-5 Root Cause Analysis FMEA is as Attachment-6 Prioritized Action identified against FMEA are as attachment -7

REMEDIAL ACTIONS

Against the FMEA & RCA counter Measures were worked out collectively.

SOLUTIONS DEPLOYMENT

Responsibilities were fixed with give time lineto execute the final solution.
Liaisonin g with Railways helped us to ensure the availability of Power for shunting.
Technical Resistance of Maintenance crew was over come by persuasion.
Thecultural issues were tackled by motivating the work force by percolating the message that real satisfaction may be derived out by getting involved for the meaningful pursuit where one should break the status quo and work for the improvement.

SUSTENANCE OF GAINS

The Rake Turn Around Hrs are tracked continuously and as this has a financial implication therefore it always has
priority Focus.As this is stand alone arrangement therefore there is no scope for replication.

BENEFITS REALIZED

Tangible

Financial Gain for the 5 Months during August 08 to December 08 was 172.63 Lacs and is shown in attachment-8

Intangible

Simplification of Process & High level of motivation of the team on account of meaningful contribution.

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