Raw material usage productivity
- RM cost is 65% of cost price.
- Highly competitive business environment.
- Cost price leadership is important in most of cabling markets.
- No progress in RM productivity programs since improvement of process measurements.
- Still significant residual usage reduction opportunity left vs. theoretical min usage.
- In 2011 a total of 1 m Euro raw material productivity was achieved in 3 benchmark projects in 3 plants in 3 different countries.
- Operational discipline to work according to detailed standards.
- Daily leadership, connected to start/stop usage defects.
- Defective cables can only be removed physically after root cause analysis and report out.
- Detailed operating standards defined and implemented.
- Daily IDEX to drive execution according to standard.
- Standardized work for start/stop of key operations.
- Training of management and improvement team.