023 eoq fp - cienciala jiri - b1

8/13/2019 023 EOQ FP - Cienciala Jiri - B1

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The Effects of the Main Changesof the Control System

in TINECK ELEZRNY, a.s.

The Effects of the Main Changesof the Control System

in TINECK ELEZRNY, a.s.

Ing. Ji Cienciala, CSc.

Chairman of BoD and CEO

Ing. Ji Cienciala, CSc.

Chairman of BoD and CEO


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2

Agenda

Introduction of TINECK ELEZRNY, a. s.

Objective of TINECK ELEZRNY, a. s.

Methods Applied

Results Achieved

Conclusion


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3

History

1st electrification of rolling mill

193

8

World War II - confiscated

194

6

Nationalized

198

3

BOF

199

1

Joint stock company

Biggest BF in Czechoslovakia192

3

Centralization of steelworks at Tinec

1877

Railway Koice - Bohumn built

1871

Privatisation fully complete

199

6

1906Mining and Metallurgical Company

1839

T established by the Court of Habsburgs


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4

Technological flows

drawing andsurface finish

tube millOstrava-Vtkovice

productionof chains

Ar

LF

RH

IR-UT

peeling andgrinding

heattreatment

coke plant

BF

sinter plant ingot teeming

BOF

EAF

bloomCCM

billet CCM

bloomingmill

reversingmill

medium section

light section

wire rod mill

billet millKladno

ladlemetallurgy

strip millBohumn

finalization


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5

T Subsidiaries and Affiliate Companies

etzrnachains

Refrasilrefractories

Vesuvius Rrefractories

ENERGETIKATINECenergy

production

SLVRNYTINEC

foundries

STROJRNYTINEC

machinery

FERROMORAVIAsteel drawing

TSCHVKladno

rolling of SBQ

VVTtube mill


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Products

sections

wire rod

rails

wide steel

semis

rebars

SBQ bars


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7

Motto: Quality Through the Ages

Strategic Objectives till 2011 Objectives for YearsProjects within Key Areas:

Partnership ManagementStaffTechnology

Advanced industrial company based on steelmaking traditionOur Vision:

staffs abilitiescompany and region linkedtradition - since 1839trade mark

Our Groundwork:

Client orientation Innovation Business spirit Flexibility

Continuous improvement Teamwork Alliance thinkingConsistency, observance Sharing knowledge and experienceCommunication Common responsibility Development of trust

Attitudes &Principles:

Our MissionTogether for the generations to come


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Objective of TINECK ELEZRNY, a. s.

To apply and develop the systemic approach

to integrated management in the long term that is

aimed at: strengthening the competitive advantage

increasing the value of the company

attracting and recruiting young, powerful, and talented people

To achieve the highest quality of internal environment byrealising the synergy of internal sources as: corporate culture

development of intelectual capital

team work

strategic management together with implementing of process andproject management


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T Highlights

54175519559957776263peopleEmployees

18.8516.6824.285.575.22%ROCE

407

8.42

2068

30827

2205

2248

2005

434

11.72

2575

29275

2301

2427

2004

465

10.55

2684

31675

2364

2517

2006

404377tonsSteel per employee

2.461.79%ROS

518309mil. CZKProfit

2103421272mil. CZKRevenues

21902258ktSales of products

23332364ktSteel production

20032002UnitIndicator


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Methods AppliedMethods Applied

Strategic Goals and Fulfilmentin Key Areas of Partnership, Technology, Staff, Management

Strategic Goals and Fulfilmentin Key Areas of Partnership, Technology, Staff, Management


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Strategic Goals and Fulfilment

Customer-oriented company (partnership, just in-time, innovation), optimal externalisation of non-productive processes, more efficient management

of subsidiaries External sources production chains

acquisitions, new production capacities in T =>

leading to product portfolio diversification =>resulting in strengthening the companysresistance to fluctuations in different marketsegments

External sources (using various grants) utilizationfor Ts development to the largest possible extent

Part

ners

hip


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Permanent process improvement exploitation ofinternal sources: productivity growth (newinvestments, innovation, downsizing), quality,ecology-friendly production

Significant investments 2000-2005

2000 2nd

stage of wire rod mill modernization2003 Modernization of continuous light section mill2004 Exchange of the converter vessels, new ladle

furnace

2005 Major overhaul of the blast furnace #4,exchange of the converter vessels

Te

ch

nolo

gy


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Te

ch

nolo

gy

Reconstruction of the CCM #1 2 strands fi 525 mm

STC Annealing furnace #3

Dedusting of Sinter Plant #1

RH Vacuum Degassing Station #2Significant Investments 2006

Significant Planned Investments 2007

Bars finishing line

Desulfurization of the hot metal

Secondary de-dusting of the BOF Plant

Garret coiling machines


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Well-educated, well-trained, well-motivated,purposeful, steadfast and resolved person = thedriving force of progress, developing intellectualcapital

Recruitment of young perspective experts

program of cooperation with all types of schools Compact program of staff training

Improving working and living conditions,

systematic decreasing accident rate level joiningthe IISIs Accident-Free Steel program

Sta

ff


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Setting Ts strategy and specifying tools for itsimplementation (strategic framework, projectmanagement)

Crisis management in T in 1999 (savings of CZK1.2 billion, companys consolidation appropriate

preparation for the periods to come) Strategic Management (Business Plan, FinancialPlan, BSC, Project Management, Key Production

Programs etc.)

M

an

agem

en

t


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Results AchievedResults Achieved

In Key Areasof Partnership, Technology, Staff, Management

In Key Areasof Partnership, Technology, Staff, Management


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Customer-oriented Company

T

Customers

ESAB electrodesMUBEA springs

DB wireMoravsk forges

Technology suppliers

SiemensAutel

SMS MeerConcast

Corporate developmentCooperation on quality

Cooperation on investment activities

Example:Cooperation with research

institutions, universities, companies

Vesuvius, Refrasil

Part

ners

hip


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Measuring of Customer Satisfaction

The total index of employees satisfaction iscalculated as a simple arithmetic average ofparticular indexes Is, Iv and Id

Ic = 4.15 points and exceeded planned value 4.06point

2006 evaluation is still in progress

86.00

83.00

4.15

4.14

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4.02

2005

83.0081.6083.00Satisfaction with product (%)

78.4080.8083.80The level of customer satisfation (%)

3.924.044.19Total Index

3.834.274.62Index Satisfaction with deliveries

4.154.084.15Index Satisfaction with product

3.773.793.79Index Satisfaction with service

200420032002Pa

rtn

ers

hip


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Trends of the Steel Grades Produced

Te

ch

nolog

y


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Change of the Product Portfolio (%)

Te

ch

nolog

y


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Air Pollution (t/year)

Te

ch

nolog

y


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Number of Accidents

Sta

ff


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Results of Satisfaction Measuring

0.7070.2730.120-0.328-0.214Perspective

for employees0.5120.3860.4930.3620.421Total satisfaction level

0.420

0.753

0.818

-0.326

2004

0.591

0.714

0.822

-0.120

2002

0.014

0.408

0.373

-0.266

2000

0.064

0.418

0.288

-0.170

1999

0.653Confidencein the manager

0.761Knowlegde ofcompanies objectives

0.815Company perspective

0.065Total salary

Indicator 2006

Sta

ff

The total satisfaction level is measured with the Index of extensitywhich can reach the value from +1 up to 1.


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Development of Parameters BSC Method

M

T

S

P

Production cost

Stock level

Material utilization accordingto mills

Production capacity utilization

Accident rate

Ratio of skilled employeesLabor turnover

Start-up curve of newinvestments

Claims according to mills

V

R

T

RF

R

M

T

S

P

Pretax profitPretax profit of subsidiaries

Production of rolled material

Total cost of hot pig iron

Total cost of hot steel

Labor productivity

Ratio of skilled employees

Labor turnover

Market share CR, EU, CEFTA

Contentment of thecustomers

T

O

P

M

T

S

P

Production cost

Stock level - charge

Material utilization

Charge richness

Accident rate

Ratio of skilled employees

Labor turnover

Start-up curve of new

investmentsClaims

VO

M

an

agem

en

t


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Projects in Key Area Management

M

an

agem

en

t

Completed projects, e.g.: Implementing of VDA 6.1 and ISO 14001 in T

Migration SAP-R/2-R/3

Implementing of TPM in T

Projects in progress, e.g.: Implementing of APS in T

Implementing of Process Management 2nd stage

Security of IS according ISO 27001


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What are we expecting

in the nearest future?

What are we expecting

in the nearest future?

Outlook and ConclusionOutlook and Conclusion


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Direction and Development Goals of T

Strengthening the cooperation and partnership withsuppliers and customers

Optimalization of orders, awareness of customers Regional activities road transport, development ofthe region

Cooperation with essential surrounding investmentincentives, financial sources from ECSF funds

Cross factory & country research

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rtn

ers

hip


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Zero defects => Top quality (ability to reach it repeatedly) =>obvious prerequisite

100 % availability of technology

Innovation (anticipating and meeting customers requirements),investments (modernization of Blooming and Reversing Mill,annealing furnaces for bars and wires, STAKU lines #2, #3 etc.)

Ecology-friendly production (dedusting of the BOF plant etc.)

High productivity low costs, individual and team topperformance,

Hiring young experts, training, experience and knowledgesharing, innovative activities Accident free steel

Te

chn

olo

gy

Sta

ff


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Optimizing of the activities within the T/MS Group,process management, sharing, standardization

Product chains acquisitions, new investment Implementing of management systems compatible withour customers (IT, KAIZEN, TPS, )

Utilization of APS systemM

an

agem

en

t


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Conclusion

Boom in steel industry continues but The technological requirements on steel products will increase

The strong one can control their production capacities depending

on demand The threat from East will grow

The metallurgical basic industry will move to raw materials

sources, gradually Our way - dynamics, courage, creativity, development

of manpower, responsibility for the region

Sustaining our vision advanced industrial companybased on steelmaking tradition

023 eoq fp - cienciala jiri - b1

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