Success Story
ArcelorMittal Belval & Differdange
(Phase 1)
Optimization of supply chain and material flow
MISSION
The objective of the common project was to increase the production volume with the same staff and ensure best-in-class customer delivery service. High product quality and high reliability in customer specific requirements combined with JIT delivery on construction site in Europe.
SOLUTION AND WORK PROCESS
The reengineering process of the AM Belval Mill 2 plant focused on transparency in the daily business and the implementation of a new Pull driven detailed planning and control system solution for optimizing the process and resource management. In detail:
Optimisation of the information management of the order processing and project engineering of the sales organisation and development of the data quality and the service concept to the customers in Europe
Development of an integrated shift based resource deployment planning in the areas of finishing, repair and shipping
Introduction of an integrated materials management and buffer concept (mill stock)
Development of integrated processes for order processing and planning from customer to customer, incl. mapping in SAP ERP and relaunch of SAP SD,PP,MM, FI, CO for the sheet piling business
Implementation of an integrated production online control system (MDS) and KPI reporting
Optimisation of planning and control of mill, melting shops and raw material procurement
RESULTS
Long term improvement in delivery reliability ex works from below 50% to a stable rate of 95% accompanied by a reduction in the overall stocks within the first year by significantly more than 30%. Based on the results achieved, additional stabilisation and stock reducing measures were approved with the project team and management which enabled a further reduction to 40% of the initial volume in the following year
Significant improvement in the cash-in-cycle by means of a high level of delivery service
Reduction in outstanding orders by more than 60%
Significantly reduced complexity of production control and processing
Considerable decrease in and stabilisation of the costs associated with logistics complaints
Jacques Koch
General Manager
ArcelorMittal Purchasing
„As a link between sales and production in the project team, I was able to see up close the change from the classic, rather antagonistic relationship between production and sales to a real, mutual cooperation based on mutual trust thanks to the achievement of goals. The company STREMLER AG has made an active contribution to this, through its accompanying mediation and through its ability to ensure that it focuses on the cause instead of the causer and on achieving the goal.“
Jean-Michel Dengler
General Manager and CEO
„The success within a year of a delivery reliability of approx. 35% to over 95% has not only led to a significantly better customer satisfaction and much lower inventory levels, but also to a much less stressful business process. I would like to thank my employees for this success, but also especially STREMLER AG. I would do this project again without hesitation with Alphonse Stremler and his team.“
