Page 5: Measuring the outcomes of change
The Journey change programme at Corus Strip Products contributes to sustainability for the business. By facing up to its internal weaknesses, Corus Strip Products has improved efficiency, increased output, lowered costs and reduced waste in an increasingly competitive steel market. This has enabled the business not just to survive but also to grow - even during the economic recession of 2008 and 2009. Thanks to the Journey programme, CSP UK expects to reduce costs for the 2009/10 financial year by around £250 million.
To make sure that actions delivered results, Corus established clear targets and standards. Milestones (intermediate steps) were set so everyone would know how far CSP UK had gone to achieving the targets. This made it easier to review and measure progress and achievements or to set new deadlines.
There have been a huge number of 'quick wins' which add up to a great gain overall. Key performance indicators have shown significant progress and include:
- production capacity has increased by 4.5% to a run rate of 5 million tonnes
- the plant is on track to achieve a 20% reduction in the cost of producing steel
- 5,000 employees have signed up to the values and beliefs of the business
- a reduction in absenteeism
- measurable improvements in levels of quality and service for customers
- tighter targets for Health and Safety - new safety teams contribute towards accident-free production
- carbon dioxide emissions have been reduced by 10%. CSP UK now exceeds government standards
- measurable improvements in the company's impact on the local community.
Individuals, teams and departments all support the improvement culture and are more engaged and committed to achieving company values and targets. This culture shift is of critical value as it will enable further improvement.
For example, Corus has implemented top-level security with controlled access for the 5000 vehicles which enter the Corus site each day. This provides a new enhanced 'entry experience' for employees, contractors and suppliers and demonstrates that Corus Strip Products is now seen as an organisation that is proud of itself.