CASE STUDY: Several hundred thousand zlotys of savings through the use of Sherlock Waste at KGHM Metraco and Walcownia Metali Nieżelaznych Łabędy

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 a mobile application Sherlock Waste. Each employee was given access to a mobile and browser-based application, which 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 app Sherlock Waste 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 work in the company 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.