Business Issue: Maximizing Value; Stakeholder Engagement
Value Added Manufacturing Systems streamline inventory management

In early 2000, Rolled Products Europe established an integrated approach to quality systems, EHS and lean manufacturing. A central VAMS (Value Added Manufacturing Systems) team provides training and workshops at the plants and facilitates supply chain projects with customers. Critical to success is an open exchange of information for both parties in these projects. Two VAMS success stories from Göttingen (Germany) follow:

Agfa-Gevaert
A project with Agfa-Gevaert, a lithographic customer, has shortened lead-times, reduced inventories, simplified administrative procedures, and increased flexibility. Additional benefits for the customer include reduced transport damage and harmonized material flow.

Alcan provides a consignment stock service to Agfa-Gevaert but, prior to VAMS, the right material wasn't always available at the right time as last minute customer changes often altered the specifications. Apart from the customer service implications, this meant high inventory costs for Alcan and last minute adjustments to production schedules.

A joint project team analyzed the current process and identified our top-selling item to the customer (the "fast-seller"). Today we plan our production on the basis of the customer's daily information on the amount of material taken out of inventory in relation to pre-determined minimum and maximum levels. As a result, inventories are lower and the consignment stock turn has increased. The customer also saves in administration and planning efforts.

Ball Packaging Europe
At Ball Packaging Europe, a can stock customer, cooperative efforts improved delivery lead-times from eight to four weeks. For this project, two "fast sellers" were also identified and Alcan was designated as main supplier for both. The new system allows the customer to enter inventory information directly into a common database, making our order preview more precise. The reduction in delivery time is advantageous for the customer and Alcan. Shorter reaction times mean lower inventories and, as with Agfa-Gevaert, consignment stock turns significantly increased.

In addition, supply chain projects are now under way with an important foil stock customer supplied by Norf (Germany) and with General Electric Tungsram Lighting in Hungary, a customer of our Nachterstedt plant (Germany).

Projects like these ensure more satisfied customers and are excellent examples of Maximizing Value.