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ABOUT THE COMPANY

Ryerson Inc., is a leading distributor and processor of metals in North America with approximately $6 billion in annual sales. Headquartered in Chicago, Ryerson has a network of service centers across the United States, Mexico, and Canada, as well as metal-trading capabilities around the world.

BUSINESS GOAL

Ryerson adopted a Six Sigma approach to drive its measurement-based strategy that focused on process improvement. The primary goal was to use the firm’s Ryerson Plus Process, to incorporate Six Sigma objectives into operations and build the foundation for a successful program. The first step was to develop a sound data collection plan to gather reliable and statistically valid data.

THE CHALLENGE

The key challenge for Ryerson was finding a solution that would enable the acquisition of real-time production data in a legacy environment. A critical factor in the decision was the level of customization and integration required during the implementation process.

“Shoplogix is a well-designed solution that simplifies the entire data acquisition process,” said Jeremy Brown, Ryerson Plus Green Belt and Project Manager.

THE SOLUTION

Having evaluated a number of different options, Brown said Ryerson found that the majority of data acquisition solutions available required a capital investment over and above the purchase of software, and usually involved lengthy implementation times of three months or more. This route also necessitated layers of integration effort and costly customization

RESULTS

Increased productivity

“In an eight hour shift we saw a 19% increase in productivity without increasing costs. On our initial Plantnode installation, we achieved a Return on Investment of 140% with a payback of 28 days,” said Brown.

Looking at the alternatives, Ryerson considered building a home-grown solution that would not necessarily be faster, but that would be customized to meet the organization’s specific needs with a similar amount of effort. Upon further consideration and research, an alternative solution was discovered in Shoplogix.

A customized approach

Brown explained Ryerson’s decision: “We chose Shoplogix for a number of reasons. It’s a well-designed solution that simplifies the entire data acquisition process, and it can scale when we’re ready to fully utilize its performance management capabilities. Plantnode is proven in legacy environments, delivers results faster than if we were to build it on our own, and it’s less complex than competitive products. The low complexity meant that we would have an easier implementation with no major retraining required.” Other products that require a PLC (Programmable Logic Controller) to access data and involve layers of integration and customization were not suited to Ryerson’s needs.

“Shoplogix offers a neat, packaged solution that combines hardware and software so there is no integration required and no compatibility or standards issues to deal with. Plantnode installs in one day, it’s easy to use and the results are immediate,” Brown said.

Ryerson installed Shoplogix’s Plantnode on one cut-to-length line in the steel processing division, and determined that a 5% increase in production was sufficient to justify the investment. “Plantnode performed far beyond our expectations. In an eight hour shift we saw a 19% increase in productivity without increasing costs,” Brown said.

Improved operator engagement

The project was a marked success, not only because of the dramatic increase in production, but because Ryerson’s operators fully embraced the solution as well. Shoplogix proved to be a motivating force within the site’s organization. According to Craig Tompkins, VP of Ryerson’s Operations: “Operators felt their lives were made easier, and for the first time they were able to relate their efforts to the bigger picture. Proactive notifications and alerts, combined with Plantnode’s visual display boards, helped automate our communication process and increase performance visibility of the production line. The result of real-time feedback and greater visibility into our process, was increased efficiency and productivity; faster response to unplanned downtime events; and a more driven labor force. All of this was achieved while maintaining our exacting quality requirements.”

CONCLUSION: A CUSTOMIZED APPROACH TO MANUFACTURING EFFICIENCY

Shoplogix is a leading provider of performance management solutions that optimize the manufacturing processes to reduce costs and increase profitability. Shoplogix specializes in providing business solutions which improve productivity, efficiency, and quality, which extend real-time visibility in to all aspects of plant floor operations. An integrated offering supported by a lean methodology, keeps Shoplogix at the forefront of the industry, to deliver solutions that provide customers with the quickest path to manufacturing efficiency maximizing ROI.