In any manufacturing industry major repairs are inevitable, but the costs involved and the impact on the business are difficult to predict. In planning a large-scale repair to a principal iron-making plant the steel giant Corus were faced with significant downtime, productivity loss and revenue shortfalls. @RISK helped them minimise these risks and resume normal operations ahead of schedule.
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@RISK was used by the management consultancy HVR Consulting Services Ltd to model the uncertainty surrounding the furnace shutdown duration. The simulation proved key to meeting the planned shutdown period, focussing management attention on potential trouble spots and highlighting opportunity to save on downtime.
The consultants also modelled all the uncertainties surrounding the Corus business in a business process model. @RISK was again used, enabling production and shipment at all east-coast Corus sites to be simulated incorporating the effects of the identified business risks. This model guided the Corus steering committee in its decisions on production and sales commitments.
As a result of the Corus management acting upon the results of the simulations the project was completed within the allowed shutdown period, without depleting the stockpiled steel to a dangerous level. The Corus success was the result of forward-looking managers using a forward-looking tool, @RISK.
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