The Start
Good morning everyone. Thanks for coming. Today, we
are going to bring you up to date with Villa Regina manufacturing plant’s
performance during last year in relation to 3
topics, which are Safety, Quality and Revenue. Our purpose is to show you some
slides on each topic and analyze them.
Well, there will be 3 presenters: Villa Regina Manufacturing
Plant Manager, Carlos Cismondi; the Quality Control Supervisor, Pablo Graziano
and myself, Juan Cervantes.
So
we’ll be addressing three main points and the first one is going to be our
Safety figures, which will be explained by Juan.// The second point will be
Quality, Pablo will provide an overview of our performance on that issue .//
And finally, I’d like to give you an understanding of how we are running our
business by looking at the results in terms of
Revenue.// The
presentation should last about 30 minutes. Please,
feel free to interrupt me if you have any questions. At the end of the
presentation, we’ll hand out a short report with the graphs and figures we will
be presenting now.
Body
Well, I will explain the first graph which is related
to our Safety
performance during last year. As you can see this is a line graph. It includes
three different parameters, the line in green represents AAR (Automotive Accidents/1000 drivers/year), while the line in
violet shows
LTIR (Lost Time Injuries/
1000 employees/ year). RIRR (Risk
Identification Reports/ Employee/ Year) is represented by the yellow
line. This graph represents the months of the year in the x axis and the measured values in the y axis.
Let´s start talking about AAR and LTIR. These two
indicators remained at zero incidents throughout last year while RIRR fluctuated significantly. RIRR showed a significant variation range, staying
most of the year under 5 units and reaching two peaks in the region of 13-14
units. In January it started at around 4 units and increased sharply to 8 in
February to drop rapidly to 3 in March. There
was a significant increase between March and May, reaching a peak of 13 and then plummeted
to 3 units in the next 2 months. Then it just rose slightly in August, followed
by an all-time fall in September to nearly 2 units. The next month it rocketed
to 12 units to fall significantly again to 3 units in November. Finally, from
November to December it experienced a small increase, and after that, it leveled
off.
Well, now I´d like to give you a brief explanation of these
trends. With reference to the first indicator AAR, which stayed at zero
accidents, I must mention 2 factors that affected this trend. Firstly, the safety prevention courses
provided by the company to the drivers. Secondly, the application of two
control systems, which are remote assistance by using a
GPS system and a safety recorder software incorporated into the car.
Let´s now move on to the other 2 indicators which
are intrinsically linked. RIRR allows the company to know about employees’ concerns
in relation to risk factors and therefore to take preventive measures. The
variations in the RIRR parameter are due to several factors.
The main one is probably connected to the limited space in
the manufacturing plant. This is affected by the variation of quantities of raw
material, produced tools, provider´s pieces, etc. Another factor is related to
outsourced work, such as machinery maintenance and facilities repairs, which is
sometimes delayed and as a result, we have customers’ complaints.
The application of the RIRR system combined with the prevention
and awareness systems have resulted in a steady decline in the occurrence of
dangerous situations and LTIR.
Well, that covers everything I want to say. If you have any questions, I´ll be happy to answer
them.
…………………………………………………………………………………………………
These figures represent how much time and materials we wasted due to non-quality; in terms of numbers
this is the total cost of non-quality over the manufacture total cost.
Now, what about last year’s figures? Well, we achieved
our target, keeping the value below 0.9%, finishing the year with an average of
0.83%. You can see in the graph that the figures during the year were uneven. The best months were May and September
reaching the lowest percentage of 0.48% and
0.49% respectively. The worst month was
December when the value increased to 1.15%, at this time of the year the
employees are focused on Christmas and vacations so that their performance
decreases.
Let´s now turn to this year’s graph, the characteristics are similar to last year,
the current figures are irregular, but unfortunately, we aren’t fulfilling our
objective of 0.85%. We had a bad month, April, we reached a peak of 2.28%
because of a lot of reworks on faulty pieces and scrap of expensive pieces. The
average value increased to 1.20%, therefore
we have to put all our energy into the rest
of the year to try to keep the average below 0.85%.
……………………………………………………………………………………………………
Now, let’s move on to the next point. Look at the line graph on
this slide. This graph shows the evolution of the Revenue month by month from
January 2012 to May 2013. The blue line represents the monthly value of
revenue. The line in magenta shows the monthly average of Revenue in 2012 and
2013 YTD. Finally, the yellow line represents the objective set as baseline in
the budget of each year.
Well, let me draw your attention to the blue line again. As you can see, in 2012 the monthly revenue varied between 600,000 and 1,100,000. Although the revenue fluctuated throughout the year, we have identified 3 well defined stages. Firstly, we had Revenue fluctuating in the region of 700K during the first 5 months of 2012. After that, the figures rocketed to just over 1,100M in June due to some old Foreign Orders that were shipped together. Soon after that, there was a substantial fall of 600K because of the winter holidays. After these surprising ups and downs, we can see the second stage where the average revenue approached the substantial amount of 1M between August and November. Finally, Revenue bottomed out in December. This value was predicting what was going to happen in 2013. We started in January at the same level as in December 2012. Then there was a sharp increase of more than half a million, reaching around 1050000 in February as a consequence of a big shipment to Venezuela. This was a unusual situation because after this month we experienced a huge fall and since then revenue has leveled off at around 450K per month.
Well, let me draw your attention to the blue line again. As you can see, in 2012 the monthly revenue varied between 600,000 and 1,100,000. Although the revenue fluctuated throughout the year, we have identified 3 well defined stages. Firstly, we had Revenue fluctuating in the region of 700K during the first 5 months of 2012. After that, the figures rocketed to just over 1,100M in June due to some old Foreign Orders that were shipped together. Soon after that, there was a substantial fall of 600K because of the winter holidays. After these surprising ups and downs, we can see the second stage where the average revenue approached the substantial amount of 1M between August and November. Finally, Revenue bottomed out in December. This value was predicting what was going to happen in 2013. We started in January at the same level as in December 2012. Then there was a sharp increase of more than half a million, reaching around 1050000 in February as a consequence of a big shipment to Venezuela. This was a unusual situation because after this month we experienced a huge fall and since then revenue has leveled off at around 450K per month.
The Finish
So, that completes our presentation. To sum up, let me just go
over the three points presented, we´ve listened to Juan talking about
different safety indicators (Automotive
Accidents, Lost Time Injuries and Risk Identification Reports), then I've showed the non-quality figures, the average percentage that we are wasting
because of wrongly made work, and finally
Carlos has talked about the evolution of the real revenue compared with the planned
revenue.
In conclusion, we’d like to leave you with the following idea, fast
work doesn’t mean good work. Keep your
work safe and pay attention to the different processes, this will reduce mistakes, time and production losses. Therefore, with
less waste, we will increase our revenue.
Thank you for listening.
