1. Six Sigma in Metals and Mining Production using PI-ProcessBook and PI-SQC Session
Alexandre Oliveira
Votorantim Metais Zinco S/A
Ricardo C. Vieira
Cybertécnica (OSISoft partner in Brazil)

2. Table of Contents Objective The Votorantim Group
Continuous Improvement Strategy
Managing Process Inputs
DMAIC – An Approach to Reduce Variability
Process Focus of Six Sigma
Define Phase
Measure Phase
Analyze Phase
Improve Phase
Control Phase
Implementing the PI ProcessBook
Benefits for Our Business
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3. We know that each parcel varies by the time
Objective
This presentation have the main objective to present how Votorantim Metais Zinco implemented the Process Management Road Map based on Six Sigma Methodology and supported by OSISoft PI ProcessBook helping control the process in order to be stable and capable focused on production volume, yield and process efficiency outputs.
P R O C E S S
PRODUCT OR
SERVICE
ENVIONMENT
METHOD
MEASUREMENT
MATERIALS
MACHINE
Expected Result
We know that each parcel varies by the time
LABOUR
LSL
USL
TARGET
INPUTS
OUTPUT
Control Volume
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4. Votorantim Group
Is one of the largest economic groups in Brazil, with an annual gross income of USD 7.0 billion in 2003.
The Group’s companies are market leaders or have outstanding participation in the production of cement, cellulose, paper, aluminum, zinc, nickel, long steel, bio-oriented polypropylene film, chemicals and orange juice.
The Group also has an outstanding participation in the electric energy sector, directly generating this important power to supply its industries, and indirectly through interests in public distribution service and sale of electricity.
In 2001, the group started its internationalization process, acquiring cement companies in Canada and the US.
The search for new business that generate long-term value has also been a concern of the Votorantim Group, which has been adding new activities, including biotechnology and information technology.
Loyal to its high social and environmental awareness, the Votorantim Group has allocated resources to these areas, investing in the improvement of the communities where it operates through several education, cultural, health and environment programs.
Find out more about the Votorantim Group at 
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5. Votorantim Metais
Votorantim Metais’ operations are focused on mining and metallurgy of zinc, nickel and long steel.
The company’s activities in these markets are supported by a solid operational structure, which includes eight proprietary plants and mines, located in the states of São Paulo, Rio de Janeiro, Minas Gerais and Goiás, and in Lima, Peru, which employ more than 7,000 direct workers and 1,500 permanent indirect ones.
It is leader in the production of zinc and electrolyte nickel in Latin America and the third largest producer of long steel in the Country.
In 2004, the company reported net earnings of USD 1.25 billion, 56 % higher than in Between 2002 and 2004, it invested USD 920 million in the expansion of its production capacity, acquisition of companies, technological modernization, energy generation and environmental initiatives.
In order to reach an internationally recognized quality standard, Votorantim Metais continually invests in the expansion of its production capacity, in employee personal and professional growth, proprietary generation of at least 50% of electric energy, development of proprietary technologies and mineral research and appropriate environmental management, which enables the company to operate in a responsible manner among the communities where it has a presence.
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6. Votorantim Metais Central Office Steel Nickel Zinc
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7. Fundamental Concepts leading to …
Measuring variation means that we can clearly define how well we are meeting CTQ requirements.
By observing or measuring the process over time you can determine the mean and standard deviation, and therefore the performance of the process against customer requirements.
Sigma requires that we measure two elements:
Process Performance
CTQ requirements
The goals of Sigma Business Improvement are to center the process well within CTQ requirements through reducing variation, first by eliminating special causes of variation, and then the common causes.
leading to …
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8. … Quantum Change Process Improvement Defects and Waste Time
Current State
New State
Improvement Period
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9. Continuous Improvement Strategy
The starting point – Main vision:
What is important for the stakeholders?
What we need to keep and improve our market share at all metals business?
How maximize Business Value Added?
Main indicators  Deployed from the stakeholders visions & requirements
Production Volume;
Overall Yield;
OEE (Overall Equipment Efficiency) – Quality, Performance, Availability and Usage.
These are the new CTB’s – Critical for our Business!
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10. Continuous Improvement Strategy
The Continuous Improvement Strategy is compromised of four elements:
Business
Technical
Cultural
Implementation
It encompasses comprehensive and proven set of tools and techniques applied in a consistent, systematic fashion to enable us to better solve problems and optimize processes in all functional areas.
The major focal points are:
Eliminating waste
Reducing variability
Driving innovation and growth
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11. Continuous Improvement Strategy
How implement the Vision (our needs):
Deployed from the stakeholders to the Plant Operations
Understand the process flow;
Identify the main outputs that impacts at our CTB’s (Process Y’s);
Identify the “vital feel” variables (Process inputs – X’s) whose impacts these Y’s;
Reduce or remove special causes from the vital X’s;
Keep the vital X’s under control  Y’s in accordance with the goals;
Continuous process improvement focused at business challenges.
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12. Managing Process Inputs
The Process Management Road Map
Why?
Process control optimization and the principal these controls became more effective and improve the performance. Obtain a new stabilization level for the plant processes
How?
Guaranty that all processes in the plant will be mapped and the variation sources are well identified, analyzed, and controlled, resulting on a stabilized operation.
The management way is defined by the Technology vs. Control Matrix vision.
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13. Managing Process Inputs
The basic premise of variation reduction is that sources of variation can be:
Identified
Quantified
Eliminated or Controlled
Few Input Variables typically have an extraordinary influence on the Output
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14. DMAIC – An Approach to Reduce Variability
Poor
Process
Capability
Increases Cost
Excellent
Process
Capability
Reduces Cost
Average
Average
LSL
USL
LSL
USL
DMAIC = Define, Measure, Analyze, Improve & Control
Customers react to variances not averages … Customers remember what they react to … Averages tell little about customer experience…
Businesses do not excel managing averages…Businesses are negatively impacted by extremes in the variation of a process
The variance in a process must be minimized to drive dramatic improvements in performance
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15. DMAIC is a Proven Methodology to Achieve Cost Reduction
Define Customer Requirements
Clearly Scoped Projects (Aligned to Business Strategy)
Define
RECOGNIZE
Calculate Sigma Level
Determine Process Capability
Actual Process Performance
Measure
DEFINE
CONTROL
MEASURE
Identify, Verify, and Quantify Root Causes
Establish Improvement Targets
Analyze
IMPROVE
ANALYZE
Validate and Pilot the Solution
Implement Improvement Plan
Improve
STANDARDIZE / INTEGRATE
Mistake Proof the Solution (Poka-Yoke)
Standardize The Process
Control
DMAIC = Define, Measure, Analyze, Improve & Control
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16. Six Sigma Problem Solving Approach
Measure
Analyze
Practical Problem
Statistical Problem y f x k = ( , . ) 1 2
Practical Solution
Statistical Solution
Control
Improve
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17. Process Focus Of Six Sigma
How Y=f(X) Relates To A Process
Process
X’s Y
Inputs (X1, X Xn)
Independent
Cause
Symptom
Control
Output
Dependent on Input
Effect
Problem
Monitor
Determining the critical X’s & controlling the X’s to guarantee the Y’s
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18. Dynamics of the Optimization Model The Funnel Effect
Eliminate Waste
Define Phase
Identify Process CTQ (y)
Inputs (X)
Measure Phase
X’s
Analyze Phase
KPIVs
Improve Phase
4 - 8 Key KPIVs
Control Phase
2 - 5 Key KPIVs
Optimized Process
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19. Primary responsibility of Project Champion and BB
The Define Phase
Identify process to be improved
Identify the customers, their needs and requirements
Quantify the gap(s) between process outputs and customer requirements
Define the performance standards or measures
Establish project objectives
Ensure resources are in place for the improvement project
Primary responsibility of Project Champion and BB
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20. Measure Phase Control Volume Process Flow Diagram
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21. Measure Phase C&E Matrix Process Mapping
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22. Measuring the y and X’s variation
Measure Phase
Measuring the y and X’s variation
Gage R&R analysis
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23. Measure Phase Capability Analysis Normality Test for y’s
Zst = 4,5
Zshift = 1,5 A B C D
Tech vs Control Matrix
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24. Statistically links key input variables with key output variable
Analyze Phase
Regression Analysis y f x k = ( , . ) 1 2
Statistically links key input variables with key output variable
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25. Continue Eliminating Waste
Improve Phase
Continue Eliminating Waste
From KPIVs to
4 - 8 Leverage KPIVs
Validate and Implement Solution using tools such as:
Optimization DOEs
Action Plan Based on 5W+2H
Alternative Solutions Matrix
Cost Benefit Analysis
Piloting Solution
Implementation
Optimized Process
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26. New Capability Analysis New Tech vs Control Matrix
Control Phase
Revised Control Plan
Zst = 4,5
Zshift = 1,5 A B C D
New Capability Analysis
New Tech vs Control Matrix
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27. Implementing the PI ProcessBook
Question
How does the RTPM can help Votorantim
Metais implement 6?
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28. RTPM Implementation VZ JF NQ TM MA BM SM 7 PI Servers, 45000 Tags
186 Clients (ProcessBook, Data Link and SQC)
24 Interfaces (OPC, DDE, RelDB, PItoPI) VZ JF NQ TM MA BM SM
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29. Off Line SPC 1 Day Control System Data Report Statistical Software
Exceptions Report
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30. Real Time SPC PI Server Clients Control Chart Exception Report
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31. SPC Displays and Reports
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32. SPC Displays and Reports
Control Charts
Histogram
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33. } What is a Contol Chart? 2 6 1 Upper Specification Limit
Lower Specification Limit
Upper Control Limit
Lower Control Limit 6 } 2 1
Average or Target Value
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34. SPC Displays and Reports
Statistics
Exceptions
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35. SPC Displays and Reports
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36. SPC Displays and Reports
Process Tag
Annotations
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37. SPC Displays and Reports
Excel Report
SPC Display
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38. 9.4% Plus Zinc Example Zinc Filtering Zinc Before PI 64% After PI 70%
H2O
Mixture
Vacuum
Reject
Zinc Filtering
9.4%
Plus Zinc
Before PI
64%
After PI
70%
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39. Benefits for the Business
Standardized control processes for all Metals Plants;
Process operations focused on KPIV’s which impacts on y’s;
Only one way to understand the Process Variations;
Quick response when out of control “signals” appears at select control charts:
Process Tag Annotations
Control Charts views
OCAP shortcut
Easy way to manage the data – displays and reports;
PI ProcessBook data base complete usage for Continuous Improvement strategies;
Turn into reality the SPC for plant floor: Operators and Supervisors day-by-day tool – the DMAIC Control phase.
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