CEMENT
15th Panhellenic Logistics Conference November 11th , 2011
Heracles member of Lafarge group
Founded in 1911 and as of 2001 is a member of Lafarge Group
Heracles is the market leader in cement production
3 cement plants
Kavala Thessaloniki
Volos
Igoumenitsa
Halkis Milaki
Volos, Milaki, Halkis
6 cement terminals
Member of Lafarge Group, world
Rio Drapetsona
leader in building materials
Heraclion
Cement Plants Distribution terminals 2
From raw material to customer – Cement production
3
Network:
Supply Chain scope
• • • •
3 plants (3 ports) 6 Distribution Centers (6 ports) 11 Quarries (3 ports) ~700 Customer Sites/RMX
Products:
• •
6 types bulk (Grey & White) 3 types bagged
Deliveries: 4.7 mtn
• • • •
3 mtn Domestic in 2010 110.000 deliveries 60% of deliveries through DCs 1.7 mtn Exports in 2010
Road Transportation
• • • • •
300 Road Tankers 412 drivers/contractors 98% with GPS 50 trucks for bagged cement 20.000.000 km /yr
Sea Transportation
• • • •
5 Pneumatic ships - Cement 3 Bulk Carriers - Raw Materials 160 Contractor personnel in Sea Transport 180.000 nautical miles /yr
4
Supply Chain mission Provide value added services to our External & Internal Customers at minimum cost and at maximum safety & environment A journey to Excellence along three axes! Key Lever: integration and visibility across functions (people), processes and systems
Safety & Environment Excellence
Cost Excellence
Service Excellence 5
Supply Chain Safety Vision for Dispatching
Customer Site Safety Program: • Circulation Plan • Unloading • Silos • Pressure prevention system • Silo explosive plates
Site Safety • Lafarge Standards • Circulation Plan • Cargo securing • Metallic Structures for silo trucks
Fatalities
Dangerous situations
• Road Transportation Program • Sea Transportation (Port Safety Project) • 6
Milestones 2005 – 2011
2005 Awareness
2006 Behaviors
2007 Monitoring Training of Employees and Contractors
Reporting of Accidents Audits (~2500 per year)
2008 Consolidation & Tools
2009 Maturing
Rise in reported Drivers behavior incidents monitoring through GPS
Launch of Road Transportation Safety Program
Speed limit violations reduction by 98%
2010 Optimizing
VISION: ZERO ACCIDENTS
2011 Innovation
Innovation in Safety, Environment & Performance
Logistics Safety practice in Greece, the base for developing a Global logistics initiative 7
Safety KPIs 60 50 40 30
Pressure limit violation incidents Truck damages /millions of km
20 10
FA Fatalities
0 '05 '06
'08 '08 01. 12. '07 (1- (909 09 8) 12)
FY '09
10( 11( 1112) 9)
Fatalities
0
0
0
0
0
0
0
0
0
0
Fatalities - Third Party
0
0
2
1
0
0
0
0
0
0
LTI
2
3
2
0
1
0
0
0
0
0
3
0
0
0
0
0
0
0
1
2
0
0
0
0
9
MI FA Truck damages
43
53
35
39
3
7,4 1,9
Audits % of non conformities
13,
Speed violation incidents (000's) Truck damages /millions of km
1,7 1,5
Truck damages / millions of tons
10
Violation of driving hours / million of km Pressure limit incidents / truck / month
0,6 0,7 2,7
11
1 7,6
1,7 0,3
0
14
0
2,1
0
33
3,3 0,3 0
6
2
2
1
0,4
0,3
0
0,2
0,3 0,4
1,5
Before RTSP
Road Transportation Safety Days Launch
After TCS / GPS Launch
8
2.8* 1,5**
After Unloading Pressure Control System Launch 8
GPS metrics Performance metrics evolution in 2009 •
Speed violation incidents from 14,000 in January down to 20 in December
•
% of non conformities from 80,1 % of fleet in January down to 5,6 % in December Violation participation
Month
nu F e a ry br ua r M y ar ch Ap ri l M ay Ju ne Ju l Au y S e gus t pt em b O k er to b No er ve be r
100.0 80.0 60.0 40.0 20.0 0.0
Ja
Au gu Se st pt em be r O kt ob e No r ve be r
Ju ly
Ju ne
ay M
Ap ril
% o f p o p u la tio n w ith n o n c o n fo rm ity
16000 14000 12000 10000 8000 6000 4000 2000 0
Ja nu a Fe ry br ua ry M ar ch
# of violation incidents
# Incidents of Max. Speed violation per month
Month
9
Standard equipment per silo truck e-TRACK Unit + data capture module Sound Alarm
Digital Input Contact / Voltage 1-W Sensor kit
Pressure Transducer Silo (pilot)
Pressure Transducer Air compressor output
Air Relief Valve
Driver Panic Button PB-1
Driver Identification Reader
Daily check list with Android phone
Air compressor activation switch 10
From Planning to Scheduling – One tool per phase • • •
Planning and Scheduling = organization of the utilization of transportation means to answer the demand at minimum cost Planning = horizon 3 years to 3 months to size the capacity Scheduling= horizon 1 month to daily for allocation
Period 3 years 1 year
3 months monthly
Tool STRATEGY
LINGO
PLANNING
LINGO
LINGO
daily SAP & TCS
SCHEDULING & EXECUTION 11
Optimization initiatives along all axes aiming to reduce cost & environmental impact Strategic planning Yearly optimization and identification of savings initiatives setting rules & guidelines Tactical Planning Monthly adjustment through software optimization Operational planning Weekly & Daily planning, based on pre-set rules
Continious optimization initiatives - 2011 Impact (estimated) Combined Cargos of Cement with Raw Materials/Fuel/Other (op. & software) Continious route/sourcing optimization with software (Lingo) Total
km â‚Ź impact 4.092.089 2.410.774 772.040 454.832 4.864.129 2.865.606
CO2 (kg) 4.679.215 882.811 5.562.025
12
Looking forward...
Safety & Environment Excellence
Innovation
Service Excellence
Cost Excellence
13