Successful Lean Implementation Through Strategic Selection, Execution and Continuous Improvement

Value Streams:
VS5: Establishing the Environment for Execution and Continuous Improvement

Audience Rating:

u Advanced
Company:

Alcoa

Speaker:
Martin Nazareth, Sr. ABS Manager & Mark Keneipp, Business Systems Manager
Title:

Successful Lean Implementation Through Strategic Selection, Execution and Continuous Improvement
Strategic selection of focus equipment, operation or problem combined with strategic execution, results in continuous improvement and a sustainable Lean Journey.

Presentation Abstract:

The main reasons for low success and sustainability in the application of Lean Thinking in Manufacturing are due to the absence of employee engagement and ownership combined with the lack of strategic implementation. Autonomous Maintenance, a part of Total Productive Maintenance (TPM), has been a major enabler in achieving operator engagement and ownership. TPM helps create a safe, clean work environment with fewer interruptions and better quality. Overall Equipment Effectiveness (OEE) is clearly the right metric to measure the effectiveness of TPM. OEE improvements show that TPM helps drive toward zero breakdowns, accidents and defects, resulting in significant increase in throughput and lower operating costs. With billions of dollars in equipment at Alcoa, TPM has been considered a major initiative along with OEE to measure its effectiveness which has produced a strong linkage to business results.

About the Company:

Alcoa is the world’s leader in aluminum smelting capacity, and the world’s second largest producer of aluminum.

The Alcoa Business System, or ABS, is an integrated set of principles and tools used to manage Alcoa businesses. The three overarching principles of ABS are:

  1. Make to Use
  2. Eliminate Waste
  3. People Linchpin the System
While ABS is about improvements, it has led to significant cost savings. At the end of 2003, Alcoa completed a three-year cost challenge program with annual savings of $1.012 billion, exceeding a $1.0 billion goal. This followed $1.1 billion in annual savings achieved in the company's 1998-2000 cost challenge. In January 2004 Alcoa announced a new cost savings program for 2004-2006, which calls for a reduction of $1.2 billion in annual expenditures by the end of 2006. Upon completion of the 1998-2006 program, the company had eliminated more than $3.3 billion in annual costs while forging closer ties to customers -- and building for the future.
Speaker Biography:

Martin Nazareth, Sr. ABS Manager

Martin Nazareth, Senior ABS Manager at Alcoa Inc.,is responsible for strategically applying LEAN methodologies and is currently leading an initiative for the global implementation of TPM/AM in the Primary Products’ business unit.

Prior to joining Alcoa, Martin was managing Program Quality for North American programs at Delphi, involving quality engineering, program management, and LEAN. He has consulted on LEAN and the application of IE with numerous companies in North America and India. Martin is a subject matter expert in LEAN, TPM/AM, OEE, and FMEA.

Martin has two Master’s degrees in Industrial Engineering and a Bachelor’s degree in Mechanical Engineering. He is a certified Project Management Professional and a Six Sigma Green Belt.

Mark Keneipp, Business Systems Manager

Mark Keneipp is the Alcoa Business Systems Manager for Warrick Primary Metals. For over 10-years, Mark has led efforts to implement “LEAN Thinking” at Alcoa’s smelter located in Southern Indiana. Mark has worked extensively at the Warrick location to help establish stability systems aim at reliable equipment, stable processes, people stability, and stable raw materials supplies to further facilitate lean implementation. Warrick’s coal mine, power plant, and smelter system in southern Indiana is one of Alcoa’s lowest cost producers in the world and the facility is almost 50 years old. Mark graduated from the University of Illinois with BS and MS Degrees in Industrial Engineering (1976 & 1978). He is also a registered Professional Engineer with 30+ years of plant experience with Alcoa in the aluminum making industry.

 
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