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Case Studies - Reengineering the Recycling Department at American National Can |
| PROJECT BACKGROUND American National Can Company (ANC) is a world-leading packaging manufacturer, producing a wide spectrum of metal, glass, and plastic packaging products for the beverage, food, and personal care markets. The company produces nearly one-third of the aluminum beverage cans sold in the U.S. each year. ANC also directs and promotes one of the world's largest recycling programs, having recycled more than 76 billion aluminum cans since 1979. ANC has also recycled more than 115 million pounds of bimetal and steel cans, in addition to 1.8 million tons of glass since 1985. In 1993, ANC executives were seeking to radically change their business practices to achieve process time, cost, and quality gains in the 40-60 percent range. This reengineering program was a natural extension of ANC's Quality Improvement Process which has been providing important incremental improvement throughout the company. After analyzing the corporate reengineering requirements, they chose MINERVA, a structured and proven approach to "Business Process Reengineering (BPR), Wizdom BPR training, and Wizdom Works!, the PC-based activity modeling and analysis toolset, to support their project team.
CORPORATE OBJECTIVES
The specific objectives of Project GREENSTAR were to:
GREENSTAR began the last week of November 1993 with BPR and modeling training for two project team members. A three-person analysis team, supplemented with four part-time personnel from affected business units, completed Levels I and 11 in two months. The team, with a focused effort from the business unit personnel, developed the TO-BE process flow and specific process improvements with cost-benefit analyses in 1 1/2 months. The project was completed in mid-March with a total elapsed time of 3 1/2 months.
The activity model was developed using a graphical and functional modeling methodology known as Integrated DEFinition Language (IDEF). The IDEF methodology was developed for industry managers and directly supports process flow, timeline, and cost analyses. The team used the activities from the model as the framework for Activity Based Cost (ABC) analysis. The ABC analysis identified the high cost activities conducted in the process. These activities became primary targets for reengineering.
Process flow and timeline analyses were conducted in parallel with the ABC analysis effort. The team subdivided itself to focus on the data collection analyses. The process flow and timeline analyses identified those activities with long elapsed times or long processing times. These activities also became primary targets for reengineening.
The GREENSTAR team conducted Value-Added analysis to determine the status of each activity in the process. The non-value-added, not necessary activities were targeted for elimination. The non-value-added, but necessary activities, were targeted for automation, reduction, or simplification.
DEVELOPING the TO-BE PROCESS
The team divided the process into eight logical segments and, using the information from the time, cost, and valueadded analyses, reengineered the process to meet both the business tenets and the strategic objectives identified in Level 1.
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