Dmitry Osovik

Integrated Work System (IWS) implementation

One of the main goals of the IWS methodology is to change the culture of the enterprise in order to achieve 100% involvement of employees in the fight against any losses during the production process. Changing the culture of an operating enterprise is perhaps the most difficult task that can be in any business, so it takes time and constant focus. The implementation of the actions aimed at this within the framework of project management provides effective control and suggests the moments of correction, the need to attract additional resources. During the project a planning of balanced launch of business processes and system elements was built, as well the optimal sequence of involvement of production lines and teams in the roll-out process. Project management, within the framework of which the IWS methodology was deployed, provided a clear rhythm and effective control over the process of creating new products for this transformation.

 

As a result, the overall performance of the factory has improved in 3 years, including:

• OEE grew up 61% to 72%
• MTBF increased from 4.3 minutes to 19.7 minutes

Project management methodology introduction

One of the main tasks was the implementation of the Prince2 project management methodology in a construction company. Moreover, this did not apply to all construction projects, but only to the largest construction complexes, which stood out in terms of construction volume and had strategic importance for the company.

As part of this initiative, the following has been done:

• Project Management Office (PMO) was established
• Organizational structures of construction sites included in the strategic pool were developed and staff (about 25 people) were recruited
• All senior managers of the company and some direct subordinates, as well as all employees of project teams were trained (more than 50 employees). The training was conducted in collaboration with Nick Graham, an active member of the Association of Project Management (APM) and the Institute of Directors (IoD), the author of the book Prince2 for Dummies
• New business processes were developed for strategic projects and the boundaries of responsibility within the matrix framework were defined

 

After the launch of project management, the main tasks of the PMO were to coordinate risk mitigation activities, solve common problems of project teams, conduct monthly audits of project teams for discipline and correctness of the use of the methodology, as well as continue to develop a regulatory framework.

 

As a result of the project management methodology implementation:

• Ensured effective management of the construction of complex facilities
• Established full control by senior management over the progress of the projects
• Gave transparency of the status of works to the departments involved in the projects in accordance with the matrix structure

 

Project «Nevo»

The main goal of the project was to provide a new space for manufacturing lines expanding the production building by 8000 m2.

The total scope of design and construction included:

• new production area with clip-on rooms
• additional areas of the administrative building, new locker rooms and canteen extension
• internal and external engineering infrastructure
• new security building security system extension

The constructed production area made it possible to place new manufacturing equipment capable of producing the latest types of products and their components. The project was implemented OTIF. The project management team used Prince2 methodology.

 

As a result of the Project:

• Reduced the cost of production due to localization of previously imported products
• Brought innovative products to the market
• Created new jobs

 

Project «Logistics Centre»

By 2004, in order to maximize production floor space for capacity expansion, BAT Russia has sacrificed most of its support facilities at the St Petersburg factory including some storage areas. Stocks were spread between external warehouses and none fully complied with BAT standards. The delivery of materials took on average 2 hours and leaf more than 4 hours. This as a result increased the risk of OOS at the factory and the risk to production efficiency and quality of the product in winter. The project began long before the start of construction work, since in addition to designing, the company had to obtain the rights to a new plot of land adjacent to the factory. After several stages of the project, a new Logistics Centre with a total area 30 000 m2 was built there.

The Logistics Centre consisted of two buildings:

• the main warehouse complex and
• the administrative two-story building with a transport gallery on the ground floor and the offices area on the second floor

The scope of project also included equipping warehouses with modern storage systems (shuttle, VNA). To manage materials and FGs flows an advanced WMS (warehouse management system) was introduced as well. To ensure the functioning of the Logistic Centre, a large amount of internal and external engineering works were carried out. The project was implemented OTIF. The project management team used Prince2 methodology.

 

As a result of the Project:

• New areas for storage of tobacco, materials and FGs made it possible to ensure 24/7 uninterrupted operation of the factory
• Significantly reduced the delivery time of materials to production
• Expand the territory of the factory site by 2 times, providing the potential for further growth of the production capacity