Gujarat Ambuja - Redefining Operational Efficiency

            

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Themes: Operational Restructuring
Period : 1993 - 2002
Organization : Gujarat Ambuja (GACL)
Pub Date : 2005
Countries : India
Industry : Cement

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Case Code : OPER009
Case Length : 12 Pages
Price: Rs. 300;



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Enhancing Productivity Contd...

To ensure consistency in the quality of material and kiln temperature, GACL installed a centrally operated computerized process control system. The system controlled around 3,000 operational parameters to ensure quality at each step of the production process. The system utilized raw material management software to evaluate the optimum mix and redesign accordingly to get consistent quality and optimum utilization of raw material.

In 1990-91, capacity utilization of the first plant at Ambuja Nagar was 140%. However, GACL's engineers continued their drive to improve capacity utilization further and installed a 24-hour monitoring system and introduced weekly checks to check faults before a breakdown occurred for certain key components. As a result of these measures, capacity utilization went up to 143% that year. GACL decided to run its plants non-stop for 40 days against the industry average of five. This was again inspired by the visit to the Japanese cement plant, which ran for 100 days continuously. As a result of all these initiatives, GACL achieved more than 100% capacity utilization during 1999.

GACL's focus on quality control practices was manifested in its decision to introduce the practice of reporting quality related data 48 times a day instead of just once. And to ensure that bags contained the right quantity of cement, GACL used Zero Error Electronic Rotary machines which checked the quantity of cement in randomly picked bags. In the case of 50 kg bags, GACL permitted a maximum variation of 200 gm. The company also invested around Rs 60 million in pollution control equipment to limit dust and debris in emissions and dust suppression and extraction systems at brushing and grinding units.

These pollution control measures led to a significant decline in the plant's repair bills. Since dust particles cause wear and tear of equipment, the decrease in such particles led to a sharp fall in the number of breakdowns in moving parts and gear boxes. Around 81,000 trees were planted in Ambuja Nagar and an artificial lake was also built. A portion of an old quarry was reclaimed and converted into a vegetable garden. Because of the stringent environmental pollution control norms at its plants, GACL was even able to maintain a rose garden near the Ambuja Nagar plant. The conveyor belt set up for the HP plant was totally covered and no limestone dust escaped into the fragile ecosystem around the conveyor. And because all three motors for the conveyor belt were located at the plant site, there were no engine noises and noxious vapors along its entire length.

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