Total Savings: $70 million / year

Description of Problem

A steel rolling mill was considering changing suppliers for rolling mill lubricant. Mill lubricants are critical to a variety of product characteristics, but to assess multiple vendors required fully replacing the lubricant on the mill and running trial production through the mill and the remaining processing steps so the sample size was limited. There were two different types of annealing furnaces in use, and the lubricant might very well have responded differently to the two types. For each furnace type, there were two furnace practices tested. Additionally, one of the vendors changed their formulation in the middle of the study to try to improve their ratings.

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Total Savings: $341,149,000 as identified by the client.

Over the course of a six-year engagement at a manufacturing Fortune 500 company, ROI member consultants worked on a number of projects.  At the end of the engagement, the company calculated bottom-line contributions of these projects.  A matrix was generated to show these projects, the cost savings, and the technique used to capture the savings.

This matrix has been re-coded to hide the actual project and department names to protect our client. Projects are listed across the top by department while the left side lists the targeted areas for improvement. The intersection of the rows and columns shows which targeted areas were impacted by each project. The methodologies used to complete the projects are shown on the bottom.

View the Graph