Shin-Etsu:

Maintenance costs and processes receive a major overhaul

With an annual production capacity of more than 3 million metric tons, Shin-Etsu is the world’s largest producer of PVC for applications ranging from conduits and window frames to floor coverings and cables. Production in the Netherlands takes place at two sites: Botlek (vinylchloride monomer semi-manufacture) and Pernis (PVC), both close to the port of Rotterdam.

Pinpoint potential improvements

Following on the heels of capacity expansions and inflation, average maintenance costs at the Botlek site over the last four-year period had risen by almost 25%. To help stem the tide of mounting costs and get back on target for the subsequent period, Shin-Etsu called in ARV Group. The request was to perform a thorough analysis of the site’s maintenance organization and processes and pinpoint potential improvements across the board. Without compromising on delivery reliability, quality or health, safety & environment, maintenance costs had to be reduced significantly in the short- to medium-term. By improving maintenance processes, Shin-Etsu wanted to reduce costs and generate positive effects on reliability and HSE.
After interviews with key players in maintenance, production, purchasing and control, ARV Group went to work with the maintenance organization to identify Key Performance indicators in areas such as outsourcing, maintenance concepts, technician efficiency, gatekeeping and purchasing. The “quick win” objective was to eliminate the greatest losses and to generate flow.

Coordination and optimization

Also at the core of the new approach (known as “Pimp My Gear”) was the shift from “firefighting mode” to proactive planning. This included the adaptation of existing concepts to arrive at lowest maintenance costs and the channeling and assessment of maintenance requests from both production and technical services. Further measures included the more efficient coordination of tasks between maintenance and production, stricter control over up- and downtime, and the optimization of contracts, unit rates and price agreements with third-party contractors.
Responsibilities for improvement efforts were transferred to Shin-Etsu people at all levels, and a management platform was created that would help to empower them and develop their talents toward active participation and improved results. Clear operational and program goals were agreed upon, and a system was set up for (daily) consultation concerning deviation from norms and steps to correct those. In the interests of continuous improvement, alignment was sought between the site’s management system, company culture and behavior.

Hard-and-fast agreements

Finally, stimuli for lasting improvement were embedded within the maintenance organization by means of a system of ongoing internal audits and hard-and-fast agreements on the role and responsibilities of key players. Latest estimates were that Shin-Etsu would be able to meet or exceed its original target- reductions for the next four years.

Ronald Raben, maintenance manager Shin-Etsu Botlek: "With the help of ARV Group, we are going to meet our maintenance process improvement and cost-reduction targets for the next four years. And the changes implemented within our maintenance organization will be of benefit to the company for much longer than that".

Theo van Es, maintenance supervisor: "Pimp My Gear made a real contribution to improving and documenting the structure of the entire maintenance process within our organization. We have seen a change in mentality that involves the effort to solve ‘problems’ as far down the line as possible, with effective monitoring in the daily or, if necessary, weekly meetings".