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Reliance Industries
To Increase POY CP10 Yield from 98.5% to 99.2% by April 2007 |
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| ORGANIZATION PROFILE |
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Reliance Industries Limited (RIL) is India's largest private sector company to feature in the Fortune Global 500 list three years in a row. It is also part of the top 25 climbers in the same list. |
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RIL holds a leadership position in the Indian economy contributing: |
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2.9% of India's GDP |
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12% of India's total exports |
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6.5% of the Government of India's indirect tax revenues |
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Strengths: Backward vertical integration starting with textiles. Backward vertical integration in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production. |
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| RIL, Hazira |
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| The Hazira complex of RIL is located on the banks of the river Tapi, near Surat in Gujarat. The complex manufactures a wide range of polymers, polyesters, fibre intermediates and petrochemicals. |
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| CP10 is the largest producer of polyester yarn among 16 different polyester sites of Reliance. |
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| PROBLEM STATEMENT |
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POY CP10 yield was around 98.50%. Problems encountered with low yield and its relation with stake holders was studied. Lower yield (98.5 %) and higher waste (1.5%) at CP10 due to higher and longer process interruptions were resulting in low productivity, inconsistent quality, and poor utilization of resources |
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| DIAGNOSING THE CAUSES |
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A structured approach was followed to diagnose the causes. Basic causes of waste were categorized into: |
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Number of Discontinuity: Number of interruptions |
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Duration of Discontinuity: Duration of interruption |
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A CTQ drill down tree was made for the same. Pareto analysis was used to identify different types of unscheduled events .It was identified that quality breaks, electrical breaks and mechanical breaks contributed 80% of the total discontinuities. Root causes were identified through Why – Why analysis. Regression analysis was carried out to validate the root causes. |
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| REMEDYING THE CAUSES |
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Six sigma tools were used for reduction in events of discontinuities. Lean tools were used for a reduction in duration of discontinuities. |
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| HOLDING THE GAINS |
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SPC charts were introduced for performance monitoring and display of performance .Visual management was used for monitoring and control of performance. |
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| The following processes were used to ensure that the gains from the implemented improvements are sustainable. |
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Monitoring through balance scorecard. |
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Changes in SOC |
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Display and visual Management |
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| BENEFITS |
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| TANGIBLE BENEFITS |
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| Recurring gains of 704 lakhs per annum. Financially validated. |
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| TANGIBLE BENEFITS |
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Shift in Paradigm: Change in Mindset. |
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Belongingness of people increased |
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Number of people involvement increased can be seen from number of Kaizen received. |
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| AUTHOR |
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Jayesh N Desai
GM - Production (Polyester Plant) |
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| Back to winners |
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| Back to winners |
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