KGHM Metraco case study

CASE STUDY: Several hundred thousand zlotys of savings through the use of Sherlock Waste at KGHM Metraco and the Łabędy Non-Ferrous Metals Rolling Mill.

CUSTOMER

KGHM Metraco and Łabędy are members of the KGHM Polska Miedź S.A. Group. KGHM Metraco is responsible for the closed-loop economy of KGHM Polska Miedź S.A., which results in the production of full-grade road aggregates, rhenium metal and copper smelter concentrate. In addition, it is responsible for the sale of road salt, purchases and the supply stream of copper scrap to KGHM Polska Miedź smelters.

PROBLEM

The scale of problems ranges from inefficient paperology to installation errors or the wrong way to deliver aggregate, which later has to be repacked. What was needed was a tool that would help engage employees in identifying problems and pinpointing the most important ones to be solved so that work could proceed more smoothly.

SOLUTION

KGHM Metraco used a new system for reporting and resolving problems in the form of the Sherlock Waste mobile application. Each employee was given access to a mobile and browser-based application that allowed them to report a problem as soon as it occurred.

In the first month of using the app, as many as 60 issues were reported. The list of issues to be resolved included:

- Wasting paper - excessive printing of WZs, possibility of replacing paper record cards with electronic ones,

-loss of time when creating documents - long processing of data by the system and pop-ups of unnecessary windows during invoicing. When posting 20 invoices, this meant wasting as much as an hour of work!

-waiting for transfer acceptances - lack of authorization to accept transfers for low amounts by people outside the management. In case of their vacations or trips, payments were greatly hindered,

-problems in getting to the warehouse - cramped interior and several pairs of doors that cannot be opened at the same time due to locking - and thus prolonging the transport of aggregate, which weighs 250kg,

-unsuitability of carts for unloading outside the building - inability to drive on paving stones, making it necessary for employees to carry products by hand.

EFFECTS

The Sherlock Waste app is not just a tool for reporting problems. Every employee in the company could add ideas on how to solve them. Thanks to the involvement of the invitees, more than 70 ideas on how to improve the company's work were registered in a month, of which almost 1/3 were selected for implementation. The potential for savings from removing the described waste was estimated at several hundred thousand zlotys per year.

The tool contributed to the involvement of employees in the smooth operation of the company. To reinforce the effect and introduce gamification elements, all problems and ideas for solving them were ranked. Those who reported the most improvements or found more causes were rewarded and thanked by the CEO.
Employees were positively surprised that they could openly talk about problems, and it was even welcomed. Involving people in process improvements got rid of frustration. Job satisfaction translated into efficiency of operations, and further into financial results.

Przemysław Hopfer, CEO of KGHM Metraco

"It is thanks to our employees that we are achieving our best results ever. Despite these successes, we know that we still face many problems in our daily work. Every problem reported by an employee is a 'gift' because eliminating it is an opportunity to improve the company."
KGHM's example shows that the state of so-called "Continues improvement" can only be achieved if employees are involved in the development process. Each employee is an expert in his or her field and knows best what is causing the problem and how to fix it. By giving employees the opportunity to report difficulties within the company, we show that we really listen to what employees say. We build lasting commitment. Reported problems begin to disappear, and the organization can improve and grow.

KGHM Metraco

Several hundred thousand zloty savings thanks to Sherlock Waste

KGHM Metraco, a subsidiary of KGHM Polska Miedź S.A., is a leader in the raw and secondary materials market. The company partnered with Sherlock Waste to optimize its operational processes and increase employee engagement, resulting in significant financial and operational benefits.

Challenge

KGHM Metraco faced the challenge of increasing operational efficiency by identifying and eliminating internal problems. The company struggled to monitor and resolve reported problems, which negatively impacted operational efficiency and generated unnecessary costs.

Solution

A new system for reporting and resolving problems in the form of the Sherlock Waste mobile application has been used at KGHM Metraco. Every employee has been given access to the mobile and browser-based application, making it possible to report problems as soon as they occur.

Processes and action steps

Employee training

Training on how to use the platform was conducted so that each employee could effectively report and monitor problems.

Integration with operational processes

The platform has been integrated into the company's day-to-day operational processes, making it possible to monitor requests on an ongoing basis.

Monitoring and analysis

Regular monitoring of requests and analysis of their content by a dedicated quality management team.

Implementation of solutions

Based on employee requests and suggestions, effective solutions were implemented, which helped improve process efficiency.

Example submissions

Wasting paper
Excessive WZ printouts, possibility of replacing paper record sheets with electronic ones.
Loss of time when creating documents
Long processing by the system and pop-ups of unnecessary windows during invoicing.
Waiting for acceptance of transfers
No authorization for acceptance of transfers for low amounts by persons outside the management.
Problems with going to the warehouse
Cramped interior and several pairs of doors that cannot be opened at the same time.
Unsuitability of carts for unloading outside the building
Lack of ability to drive on paving stones, making it necessary for workers to carry products by hand.

Applications

The implementation of Sherlock Waste has significantly impacted the operational efficiency of KGHM Metraco. Thanks to the platform, the company not only improved problem management, but also engaged employees in the process of continuous improvement. The result was not only increased operational efficiency, but also significant financial savings. To strengthen the effect, gamification elements were introduced, which further motivated employees to actively participate in the improvement process.

Achieved results

As a result of the implementation of Sherlock Waste, York saw impressive results in the first period. There were savings of several hundred thousand zlotys thanks to the elimination of waste and optimization of processes, which translated into significant financial benefits for the company. These results were achieved thanks to the high commitment of employees, as evidenced by, among other things:

problems reported in the first six months, indicating a high level of employee involvement in the reporting process

0 %

reported problems have been resolved, indicating the effectiveness of the corrective measures taken

0 %

An increase in employee engagement, indicating a more proactive attitude toward identifying and solving problems

It is thanks to our employees that we are achieving our best results ever. Despite these successes, we know that we still face many problems in our daily work. Every problem reported by an employee is a 'gift', because eliminating it is an opportunity to improve the company.