Presentacion_TS_y_Mejora_Continua (UNGS oct15)

Company Overview Tenaris 1November 12, 2015

Mejora Contínua


Degrees

Industrial Engineering at University of Buenos Aires, Argentina

Bios

- Nobleza Piccardo (B.A.T. subsidiary), Process and Project engineer

- TenarisSiderca / Industrial Engineering, Industrial Engineering Analyst

- Tenaris / Industrial Coordination, Industrial Mgmt Global Expert – Premium Threading

- Tenaris / 00100 Project, Industrial Process Control – Project Manager

- 00100 Project, South America Regional Champion

Current Position

- 00100 Project & Continuous Improvement, Champion Argentina

Andrés Villamor


Agenda

• Tenaris Overview

• Tenaris y la Mejora

• MC & Change Management

• Modelo de Analisis de Beneficios

• Casos de Exito


Grupo Techint

Flat SteelEngineering

and ConstructionSteel Tubes Oil & Gas

IndustrialServices


Servicios para la industria energética mundial y otras aplicaciones industriales

Países

Con plantas

productivas

16 5Centros de I&D

En todo el mundo

6,3Millones de

toneladas de

tubos de acero

Capacidad de

producción anual

3,7 millones de

toneladas de tubos sin

costura

2,6 millones de

toneladas de tubos con

costura

27.816Empleados(2014)

Sistema industrial global


Sistema industrial global

10,3Billones de US$

Ventas anuales

netas

(2014)

4Países

En los que cotiza

en la bolsa de

valores

Nueva York

Buenos Aires

Italia

México30Países

Con red de

servicios y

distribución

Ventas por región

América del

Norte

48%América del Sur

21%

Europa

9%

Medio

Oriente y

África

18%

Asia Pacífico

4%


Operaciones a nivel mundial

Plantas productivas Centros de servicios

Centros de I&D Oficinas comerciales


Gestión industrial integrada

4

12

30

50

98

plantas de laminación de tubos

sin costura

plantas de tubos con costura

líneas de tratamiento térmico

líneas de roscado premium

ISO 9001:2008Un único sistema de control de calidad

ISO 14001 y

OHSAS 18001 Actualmente, el 78% del personal de

Tenaris trabaja en centros de producción

certificados bajo estos estándares.

acerías eléctricas


Segmentos de mercado

Líder global en manufactura y suministro de productos y

servicios tubulares utilizados en:

• Perforación, producción y terminación de pozos de petróleo y gas.

• Transporte de petróleo y gas

• Plantas energéticas y de procesamiento

• Aplicaciones industriales y automotrices especializadas

OCTG Conexiones

Premium

Tubos de

Conducción

Offshore

Procesamiento

de Hidrocarburos

Generación de

Energía

Servicios Industriales y Automotrices


Evolution of production capacity(Thousand Tons)

480 680 820 820 820 820 820 820 900 900 900 900

350350 350 350 350 350 350

430 430 430 430

730 730 780 780 780 780780 780

1230 1230

950 950 950 950 950950 950

950 950500 500 500

500 550

550 550260 260

260 260

260 260

250 250250 250

350 350

1780 1780

1780 1950

600

1 2 3 4 5 6 7 8 9 10 11 12

Bay City (USA)

SPIJ (IND)

Maverick (USA-CAN-COL)

Silcotube (ROM)

Algoma Tubes (CAN)

NKK Tubes (JAP)

Confab (BRA)

Tavsa (VEN)

Dalmine (ITA)

Tamsa (MEX)

Siat (ARG)

Siderca (ARG)

1954 1986 1993 1996 1998 1999 2000 2004 2006 2009 2013 2016

480

1,030

1,900

2,850 2,980

3,480

3,990 4,170

6,1106,200

6,750

7,520


Tenaris Siderca’s Lay Out

La creación de una empresa global en busqueda de la excelencia y el rol de la mejora continua

Tenaris y la Mejora


Industrial Excellence

Differentiation


Industrial Excellence strategic role

Strategic objectivesFOR

• Tenaris business strategy is leveraged on differentiation

• Customer recognizes the worth of Industrial Excellence, and selects

Tenaris among other competitors

• It’s a common language for process managing and standardization in all

mills

• Tenaris has a global footprint for global customers, so product & services

quality must be equally assured in all regions

00100 and Continuous Improvement TenarisUniversity 15

Industrial Coordination Main Objectives

• To manage the industrial system with a global approach.

• To create standard references and spread best practices.

• To develop centers of excellence of the several industrial processes.

• To develop continuous improvements activities with common methods.

• To identify/develop initiatives to improve the performances.

• To assess the industrial systems and to suggest areas of improvement.

• To carry out internal/external benchmarking and reduce gaps between best/worst facilities.

• To assure the investment plan execution.

• To be the user interface between the industrial system necessities and IT.

12 November 2015A. Villamor


One Industrial System 00100 Project

Organizational goals:Industrial

performance goals:

“0 accidents”

“0 defects”

“100% compliance”

• One Tenaris Industrial System

• One “Continuous

Improvement” culture in all

Tenaris people

Global program oriented

to improve Tenaris

industrial system towards

operative excellence

12/11/2015


Improvement approach

Step 2. Improve from the set standards

The Standard

Time (years)

Perf

orm

ance

WC+BC

Mainly WC+Experts

# of resources involved

Step 1. Install and adhere to standards

One Tenaris Industrial System

Continuous Improvement



00100 Project evolution


Approach excellenceFix basics Stabilize operations

67 projectslaunched in the 1st wave

First wave of projects

Design and Implementation of One Industrial System

2008-2010 2011- 2015

00100 Phase II

Continuous Improvement

2007

00100 Phase I

Assessment&

Phase II set-up

8 mills assessed

600 people involved

Assessment Results

120 Initiativesidentified

30 Initiativesselected

Key initiatives

More than 670 implementations

completed, oriented to

standardization(more than 4000 WI, and 22,000

RA, etc.)

Standardization phase2015

More than 1000 CI

groups with benefits for more than 90 Mu$d

Global CI wave


From 00100 to CI

12/11/2015

Global coordinated

program focus to speed up

improvement opportunities

at local areas


Program Office & Change Mgmt.

Project Office Support

Project Management

Practices & Tools

Meetings Schedule

Consolidated Reports

Resources Administration

KPIsProcedures & Tools

The PO defines and maintains the processes standards related to project management

It is the source of information, guidanceand provides metrics on the practice management and execution; it tracks the status and progress of all 00100 initiatives and reports to Tenaris top management.

Change Management

Change Management will help to minimizing the depth and width of the productivity dip enabling people to accept and work within the new process, by delivering activities like:

Motivation & awareness, Communications, Training & development, Performance management, Staffing, Motivation & recognition, Reinforcement to assure sustainability.



Change Management Pillars


Organization

• To enable lasting change, you need to ensure that all HR systems, structures, processes and incentives are aligned and consistent with the goals of transformation

Training

• Assure necessary skills & competences or knowledge of the audiences.

Follow up

• Assure the model sustainability.

Communication

• Generate understanding, positive perceptions and commitment towards change.

• Update stakeholders on project development.

Leadership is key to succeed on change

Change Management Pillars


• New specialist role was created to facilitate and manage the

CI projects

• CI activity will be increased involving a large number of the

BC population

• Common methods and tools will be applied in all Tenaris

facilities

• Top-to-down definition of the list of subjects to be

addressed, based on Tenaris Industrial priorities

• The results of the CI teams will be formalized and

documented as new standards, and transferred to other

areas and mills when applicable

Concepts of the CI by 00100 model


CI in Tenaris:Methodology & Governance

Taking into account the subjects which

have the greater mill impact, a 3-year

plan will be defined containing

strategic industrial guidelines of the

topics to be faced by the CI activity by

country, reviewed every 6 months

Based on the Strategic Improvement

Guidelines, the list of initiatives to be

faced by each mill will be discussed

and integrated on a “long list” of Mill

Improvement Initiatives. Moreover, this

list can include additional topics

according to specific mill criticalities

(HSE, Quality, and SCM).

The detailed list of topics to be faced

by the CI teams will be defined.

Additional information will be collected

in order to support the team analysis

and the objective definitions. During

this stage the specific CI teams to be

launched will be defined (select teams

members, objective and duration).

Inputs:

Business Plan

Customer satisfaction

Management Review

Competitiveness

Top to down, 360

Project, etc.

Global CI

Committee

Strategic

Improvement

Guidelines

AM

Committee

Mill

Improvement

Initiatives

Line

Committee

Line

Improvement

Initiatives

Launch CI

teams &

activities

1

2

3

1 2 3


• Problem analysis

• Flowchart

• Information

gathering

• 5 why?

• Brainstorming

• Cause-effect chart

• Relationship chart

• Pareto chart

• Action plans

PROBLEM

SOLVING

Model

implementation:

• SORT

• SET IN ORDER

• SHINE

• STANDARDIZE

• SUSTAIN

Specific for

changeover reduction:

• Changeover video

• SMED form + Gantt

• Men/machine chart

• Multiple activities

chart

• Spaghetti chart

• Histogram

Specific for energy

saving groups:

• Problem scope

definition

• Assessment of the

measuring system

• Baseline & objective

definition

• Loses elimination

• Demand analysis

• Applicability of BAP &

BAT

• Results confirmation

and standardization

CI groups methodology

• Reduced version of PS methodology, where the problem

and the causes are known, and the objective is just to

define and implement the proper action plan


• The problem, the improvement, the objective, and the

process from the business and client perspectiveDefine

• The impact of the problem on the process, its

current performance, and all the related

measurementsMeasure

• Find the causes that impact performance,

and the root cause Analyze

• Define the actions that allow us to

achieve the desired performanceImprove

• Standardize and ensure that the

improvement is sustainableControl

DMAIC Methodology for CI projects


• Objetivo

• Plan de acción

• Integrantes

• KPI / Beneficio

• Reuniones

00100 Site – Group Information


CI 14/15 – Argentina

• Acumulado 62 grupos de mejora con un beneficio anual proyectado de US$ 7.043k.

• Participacion: 582 personas (49% BC), considerando grupos cerrados y en curso. Con una participación acumulada en los últimos 3 años de 1096 personas (584 BC y 512 WC)

• 21 grupos han realizado mejoras que terminaron modificando los valores standard para el nuevo ejercicio.

• 32% de grupos trabajaron con un objetivo principal en temas de HSE• 37% cuyo foco principal fueron temas de costos y eficiencia.


CI 14/15 Results

MC & Change Management

El diferencial en la gente


Training activities


2013 year end party


publications


Special events


Recognitions’ events


Lunch with Directors


Líderes Autónomos

Modelo de Analisis de Beneficios


CI 14/15 – Argentina


Benefit calculation Framework

Implementation of a standardized methodology for

benefit calculation

Promote calculation decentralization

Facilitate comparison between projects

Improvement

Projects

Benefit

calculationKPIs

improvement

Evaluate actual effectiveness of CI

system


Benefit calculation

Main

KP

Is

• Changeover

• Cycle Time

• Productivity on Effective

Time

• Interruptions

• CTT

• Scrap

• Reworks

• Stock

AS PER

METHODOLOGY

Main

KP

Is • Energy Consumption

• Signalizing

• Spare Parts Costs

• Consumables

• 3rd Party Costs

DIRECTLY

Main

KP

Is • Lead Time

• Compliance

• Safety

• Production

NON VALUATED

Benefit calculation:• Labor Cost

• NRG Cost

• Production Cost

• I D Stock Financial Cost(in USD/yr measured at the

same production level)

• Production increase(in tons, identified but not

valuated)

Benefit calculation:

• In USD/yr measured at

the same production

level

Improvements identified

but not valuated

Project type

identified with

main KPI

Some specific KPIs

could exist that are not

included in this list, and

will be evaluated ad-hoc

(e.g. fines)

Casos de Exito


Reduce tires reparation costFOCUS : Cost

OBJECTIVE : Reduce 10% trailer’s tires reparation cost and improve trailer availability

MAIN ACTIONS: New tires for rear trailer axe, increase magnet frequency and analize and

improve tracks parking places at exit lines

2% 3%

14%

3% 5%

3% 3%

10%

2% 2%

7% 4%

28%

7% 10%

11% 9%

47%

13% 14% K$ 150


Reduce pipe rejection due to pipe sampling

FOCUS : Cost (CTT + Compliance )

OBJECTIVE : Reduce pipe rejection due to sampling by 25% (focused on HU products)

MAIN ACTIONS: Adjust sampling rejection standard; Implement reutilization procedure

(upseting and adjustment); Review and adjust product roudmaps; Analyze and review

customer specifications

K$ 117


Improvement of shoe-guide preparation

FOCUS : Safety

OBJECTIVE : Reduce operational risks of the shoe guide preparation operation (RA = 3)

MAIN ACTIONS: Implement a new support to rotate and disassembly HRM shoe-guide


FOCUS : Costs and HSE

OBJECTIVE : Reduce woods separator consumption at Premium area

Improve wood recovery at PREM area

Achieved results:Initial situation: Woods after semis discharge at Premium area

K$ 200


FOCUS : Costs and HSE

OBJECTIVE : Replace full wood box for accessories by wood covers

Other actions to reduce wood usage

K$ 300


Improve management and reduce cost of road equipmentsFOCUS: Other costs

OBJECTIVE : Reduce rent costs of road equipments and optimize coordination of use

between areas.

MAIN ACTIONS:

• Research the use in Siderca´s Plant.

• Centralization of requests throughweb site

• Coordinationbetween GEIN and TRAN to share theuse of equipments.

K$ 900


5s plan on workshopFOCUS : Health and Safety

OBJECTIVE : Implement 5s standars in 3 different workshops. Achieve trazability of

workshop pieces.

AFTERBEFORE


Most relevant aspects to be considered for a CI program

Highlights

Top-management full commitment and support

Top-to-down approach (vs bottom-up) for topic definition

Focus on CI groups benefit

KPI definition and follow-up

Leadership and project management skills

Change management support

Motivation

Commitment and participation

Communications

Training

Flexibility, innovation, criteria

Presentacion_TS_y_Mejora_Continua (UNGS oct15)

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