The Poltava Mining and Processing Plant (Ferrexpo) is the largest Ukrainian exporter of iron ore pellets and a huge structure with 8,000 employees. The company operates in cycles, and its key process begins with the extraction of ore from the quarry. The ore is then crushed, formed into pellets, and exported.
A halt at any stage leads to millions in losses.
The Poltava Mining and Processing Plant (Ferrexpo) faced a problem:
From time to time, the throughput of the process decreased due to equipment breakdowns or prolonged maintenance. If spare parts were unavailable for immediate repairs, the downtime could drag on indefinitely. Meanwhile, the company’s warehouses were being stocked with unnecessary parts that “froze” the plant’s capital.
What we did
- We conducted an audit and identified the problem areas. We modeled the process and began looking for ways to reorganize it.
- We developed a new spare parts ordering system. This system made it possible to determine which parts should be in stock and how to establish relationships with suppliers in case of an unscheduled order.
- We optimized the equipment repair process. This allowed us to better control who performs the repair and when. In case of repeated failures, it became easier to identify what had been done and by whom previously.
Results
- Processes are documented, and responsibilities are clearly defined. “White spots” were eliminated, processes formalized, and every employee knows what is expected of them when performing the process.
- Automation Plan: In the final stage of the project, “Project Management Bureau” helped develop requirements for automation. We recommended configuring the system to automatically track when scheduled maintenance is due and suggest the recommended set of tasks and spare parts.
- Performance Indicators: We developed indicators that allow Ferrexpo to monitor and assess the performance of the equipment maintenance and repair process.
