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ould profoundly realize that lean manufacturing could bring significant benefits to Baosteel in terms of shareholder value, customer satisfaction, and employee satisfaction. Based on this belief, senior management should, with unshakable confidence and 3 / 11mitment, lead and promote and rollout and deepening of lean manufacturing pilot. 2. HRC PLANT LEAN MANUFACTURING PILOT PLANTrough the munication and discussion with HRC plant management, the joint diagnosis team proposes to conduct pilots of 36 months in product quality, breakdown time, work roll change, backup roll change, and annual planned maintenance areas. In order to speed up realization of shortterm targets and financial impacts, and considering HRC implementation capability and risk, team remend both 1580 and 2050 lines conduct pilots at the same time. In the meantime, team will help set up performance management system and process in HRC to provide fundamental infrastructure support for next step lean roll out and continuous improvement. The pilot plan include the following 4 parts:1. Pilot target2. Pilot approach3. Key pilot activities and end products4. Joint pilot team members1. Pilot targetJoint diagnosis team suggests that Baosteel use near term improvement potential as final target of 69 months pilot, and, depending on the characteristics of each improvement areas, set required time to reach targets and evaluation standard of pilot results. Detailed pilot targets will be defined after you make “go” decision, and will be validated in the form of signed performance contract between Baosteel senior management and HRC pilot teams. Near term improvement target is list in lean manufacturing diagnosis report.2. Pilot approachJoint diagnosis team remends that HRC plant should adopt different problem solving approaches according to the characteristics of different pilot projects. Breakthrough projects:For those projects that have fewer improvement opportunites however each with high financial impact, and have less requirement on large scale people involvement, which include work roll and backup roll changes and annual planned maintenance, we remend breakthrough pilots with project team leading the problem solving. This will involve standardization of work process, training of front line operators, and then implementation of pilot. Continuous improvement projects involving all employees:For those projects that have many improvement opportunities however each with low financial impact, and require largescale people involvement, which include improving product quality and reducing breakdown time, we remend continuous improvement pilots involving all employees. Using systematic problem solving method and tools, project teams continuously, bottomup, capture and implement each improvement opportunity that will bring impact. This pilot approach has generated significant impact in thousands of operational improvement projects we involved. It will generate significant impact in a short term and continue the improvement step by step in a 3month stage. Due to the plexity of product quality problem, team suggests that, before the stepbystep continuous improvement implementation, Baosteel should design a quality anization and management process as the fundamental infrastructure of continuous improvement. We suggest that, during the first 3 months of pilot, pilot team will drive selectively solving “first wave” mon and frequent quality problems, in the meantime set up quality continuous improvement anization and ma