Case Studies
Aluminum Processor with Global Operations
Alcan’s Primary Metal Group (APMG) has developed and implemented a world-class partnership program with suppliers in order to achieve significant, measurable and on-going savings based on the principles of Total Cost of Ownership (TCO). The program entitled ‘Maximizing Value’ embraces a number of leading edge sourcing and partnering principles e.g. web portal, communication, a series of global supplier days, reporting, performance measurement, etc., in order to achieve its goals. The principals at KCB Inc. assisted APMG in establishing the program and most recently helped to develop content, presentations and workshop materials for their renewed Supplier Day rollout in selected geographies.
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Nickel Smelter
It started out as a straightforward challenge: A nickel smelter in northern Ontario had to cut costs to cope with worldwide pressures on nickel prices. Its goal was to reduce the weighted average cost to produce a pound of nickel and copper by 20 cents to $1.30.
The smelter’s general manager asked Karl Kelton for help. Kelton had three options: cut costs, increase production from its existing asset base, or do both. Kelton opted for the two-pronged approach. But while his Montreal based team was working on plans to cut costs in various areas of the plant, the assignment suddenly became more complicated – the smelter was hit by a workers’ strike.
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Fortune 500 Energy and Aluminum Supplier
A critical plant sector of the Canadian metallurgical division had been suffering deteriorating operability, culminating in 2005 with its lowest on-line time in 15 years. The sector in question represented the plant bottleneck.
Its recently appointed General Manager attributed the problem to weaknesses in its plant maintenance strategy, policies, procedures, and practices. Within this context, an in-depth maintenance assessment was proposed.
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