New vsb 1 YEAR OF - Vallourec
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Special Booklet
1 YEAR OF
new vsb
Vallourec Soluções Tubulares do Brasil – The New VSB – celebrates one year after
the merge of the Jeceaba and Barreiro units which took place in October 2016.
A robust action plan is being implemented bringing significant results to the
management as well as the corporate culture of the new company.
1-Introduction
N ovember 1st, 2017 marks one year of the establishment of Vallourec
Soluções Tubulares do Brasil – The New VSB.
To guarantee the success of this merge and the competitiveness of
both units, The Program of Transformation for the New VSB was
formulated. This program defines 18 strategic projects.
The main challenges of The Program were:
Setup of a INDUSTRIAL AND SYSTEMS ADJUSTMENT OF DEFINITION OF A
competitive ADMINISTRATIVE INTEGRATION THE COMPANY’S ROBUST CULTURAL
hub of SYNERGIES COMPETITIVENESS TRANSFORMATION
PREMIUM* for management, billing PROGRAM
SOLUTIONS to optimize costs and improve and process control and to new price margins in
IN BRAZIL processes. improvement. accordance to international as a fundamental backdrop and
levels. based on the following archetypes:
Realization; One Team; and Customer
Focus, having widespread values and
an Inspiring Mission.
*Use the words and meaning glossary at the end of this book
2 1 year of new vsb | Special Booklet
2-Synergies, In many superintendencies there was an integration of teams under one manager for
both units, Jeaceaba/Barreiro. These initiatives brought about a greater integration
Adjustments among the teams and opened the way for new processes that are less bureaucratic,
faster, fairer and more effective.
and Team Unification of superintendencies in the production, maintenance and logistic areas.
These three strategic areas were managed by 8 superintendencies. They were reduced
Integration to 3 superintendencies.
By centralizing management, it was possible to have gains in cost reduction,
uniformity and expediency in decision making related to synergies and integration of
personnel, processes and operations. One Team!
g GAINS WITH UNIFIED MAINTENANCE
Maintenance cost are extremely relevant in industrial processes.
The unification of the maintenance departments, as well as the training
These examples
of inspectors to work at both units, brought about synergies resulting in reflect our
many gains. Here are some examples: reduction of spare parts inventory values:
as well as know-how and best practice sharing. Lubrication tests and tool
• Respect for people
cooling were standardized in both units. The same was done with other
raw materials such as grease, packaging and thread protectors. • Integrity and
transparency
g WORK STATIONS IN OPERATIONS AT BOTH SITES • Standards and
Blast furnace, steel making, Q and T and Threading operators are being professionalism
prepared to work in both units to balance the productive capacity of both
• Common commitment
plants using our existing work force.
• Performance and
g JOINT ROUTINE MEETINGS responsiveness
Considering people working in both units as one team, routine meetings
between management and teams have taken place in all productive areas.
SAFETY IS OUR
GREATEr VALUE
1 year of new vsb | Special Booklet 3
3-Systems A complete integration of the management systems of the new company
was made with the intense participation of the Information Technology,
Logistics, Planning, Purchasing and Finance departments. This integration
Integration posed one of the program’s greatest challenges since the main goal was the
continuity of the following processes: production, billing and management.
sap corporate
Main management tool
e-mails
used by practically all
Standardization of e-mail addresses.
departments in the
company.
THE
MAIN
INTEGRATED
CORPORATE
SYSTEMS
are:
Business
Inteligence
BPS Set of tools for management
Standard in the Planning reports and KPIs.
Department it was not used
by the Jeceaba plant.
intranet
APO Adjustments of the Vallourec
Inside Brasil Page.
Linked to production planning.
4 1 year of new vsb | Special Booklet
4-Cost Reduction
Cost reduction represents a fundamental factor
for the success of the whole transformation plan of
the company.
Considering the situation of the oil and gas market LS 3.0 (COSTS PROJECT ROta 108 –
and substantial reduction in the profit margins REDUCTION PROGRAM) CHARCOAL COST PER
of our products, to compete in the international – TUBE COST PER TON TON
market it is paramount that all the company’s All sides participated greatly in the As the LS 3.0, the Rota 108 has
employees make a tireless effort in the search for sharing of ideas in Jeceaba plant. We counted heavily with the participation
cost reduction. are on the right way but we still need of all people involved through
Only by reaching our cost reduction targets will to make a lot of effort to reach the their cost reduction ideas and their
the company be able to maintain itself as a global final 2018 target. It is important to implementation in Vallourec Florestal.
emphasize that this is a program of It is very important that this target be
supplier of products and services.
The New VSB and should be embraced reached so that charcoal can regain its
by all employees in both plants. competitiveness for the production of
In this context, various initiatives have already pig iron.
been implemented and there are still many
challenges ahead.
TAX CREDIT REBATE Avoided
investments
This is an important action to
balance the difference in profile By concentrating the production of
between the Jeceaba plant (export steel in Jeceaba and readjusting the
profile) and Barreiro plant (domestic number of operating blast furnaces
market supplier). for the future, it was possible to
optimize industrial investments and
also investments in Florestal.
1 year of new vsb | Special Booklet 5
5-Cultural
transformation
SEAL OF THE
CULTURAL
TRANSFORMATION PLAN
CHOSEN IN INTERNAL
CONCOURSE WITH THE
PARTICIPATION OF THE
NEW VSB EMPLOYEES.
CONCOURSE
WINNER: KENIA
MORAIS (ENGINEER
OF THE SEARCH AND
DEVELOPMENT AREA)
As a backdrop for the integration and setup of the new The general target was to improve the way employees see the
company, the need to establish a cultural change program company. Bringing them to see the company as a whole and
was diagnosed. This way the employees would feel involved not only their own departments. Create better connections
and engaged in the objectives and challenges of the new among people, areas and plants according to a common
company. commitment, aligned with
the new company strategy.
During the program, 10 Lever Groups were assembled to
meet regularly and discuss relevant issues related to the A new mission was established for a new company, based on
cultural change. From these Lever groups an extensive values to be followed by all.
action plan took shape and is being implemented in the
company using 7 Knowledge Blocks. These groups are Besides this, the pillars of the new desired culture were based
regularly followed up by the Program Management and a on the following archetypes: Realization, Custumer Focus and
Steering Commitee. One Team.
These Blocs of Knowledge are linked to the following subjects: The Mindset Map of the Program was launched as a tool
Human Resources, Controlling and Planning, Purchasing, to disseminate the cultural change in a simple way to the
Know-How, VMS (Vallourec Management System), employees. Company leaders were trained and given resources
Communication and Quick Wins, which are actions with to improve communication and the handing down of
expected quick returns. information between the strategic area and the operational area.
6 1 year of new vsb | Special Booklet
MINDSET MAP
CULTURAL TRANSFORMATION PROGRAM
Understand, practice and be part of this change
OUR VALUES
TO BE A LEARNER
Respect for People
Integrity and Transparency Not to be arrogant
Standards and Professionalism Have self-awareness and curiosity
Common Commitment Be available to learn
Performance and Responsiveness BUILDING
Safety is our greater Value TOGETHER OUR
COMPETITIVENESS
ARCHETYPES
Realization
BEHAVIOR
(IS DETERMINED BY)
Costumer Focus
One Team MISSION Self Knowledge
Feelings
To be recognized as a Premium tubular CULTURAL Beliefs
solutions provider trough industrial excellence,
cutting edge technology, sustainable RENOVATION
management and cultural diversity, ensuring a Symbols
highly competitive position in Brazilian and Systems
International markets. Behavior
1 year of new vsb | Special Booklet 7
6-Cultural Change/
Actions implemented
100%
OF THE 72
PLANNED ACTIONS
WERE CONCLUDED
IN MARCH 2017
Quick Wins –
Exchange of outdoor signs in Jeceaba.
Inauguration of the Chat with Directors in the
production areas.
Improvement in the format of internal communications.
Ex. Organograms.
Reduction of private parking spaces in the plants.
Standardization of entrance rules, uniform cleaning and
ways of working in both sites.
Development of Cultural Change Mindset Map.
8 1 year of new vsb | Special Booklet
Actions related
ACTIONS RELATED TO to Values
THE NEW MISSION
RESPECT STANDARDS AND SAFETY IS OUR
g Adaptation of the finishing floors
serving as solution providers.
FOR PEOPLE PROFESSIONALISM GREATEST VALUE
Ex. Meeting Petrobras contract • Prior announcement concerning the • Improvement in the establishment •U
nification of safety
requirement. shut down of the Barreiro steel mill. of corporate and individual targets. management in both sites.
• Relocation of both Jeceaba and • Improvement in the follow -up of •D
uring the integration process
g Products industrialization and
“Premiumization” in the Jeceaba plant.
Barreiro teams.
• Continuous improvement of cascading
targets.
• Common effort in the objective of
there was no negative impact
in the safety indicators.
of strategic information at all levels. “doing more with less”.
g Reaching bold cost reduction targets
aiming at international competitiveness.
• Uniformity of treatment for employees
in both plants.
COMMON
COMMITMENT
INTEGRITY AND
•P
roposal to adopt LS 3.0 project
TRANSPARENCy
as Corporate and not only in the
• Law abidance in the merge process of Jeceaba plant.
the plants. •U
nification of organizational
• Providing clear information to all structures in both plants.
stakeholders about the process •U
nification of systems, symbols
including entities such as CADE, and behaviors.
Commercial Council, City hall,
State and Federal governments,
besides adjustment of licenses with PERFORMANCE AND
environmental agencies. RESPONSIVENESS
• Continuous improvement of cascading
of strategic information at all levels. •R
eaching performance targets as
• Routine meetings with teams from planned.
both units. •R
eview of flows, processes and
• Opinion survey in the production compliance to norms.
areas. roadening of the Lean tool in
•B
• Chat with directors in the several departments.
production areas.
1 year of new vsb | Special Booklet 9
ACTIONS RELATED
TO ARCHETYPES — UPCOMING ACTIONS
realization one TEAM
FOR THE Vallourec
•R
eaching performance targets as • Integration of VSB and Vallourec and VSB BRANDS
planned. brands in the company’s
•A
chievement of actions planned in the communication. Among the many upcoming actions in the Cultural Transformation Plan,
Transformation Program. • Sinergy among production, the following actions should occur in the upcoming months:
•A
chievement of actions planned in maintenance and logistics
the Lever Groups and Blocks of the superintendencies and other support
Cultural Transformation Program. areas.
•A
chievement within plan of cost
reduction targets.
• Unification of management, billing,
controlling and processing systems.
g Removal of indoor and outdoor signs with
the V&M brand in the Barreiro plant.
• Standardization of the
Customer FOCUS
communication channels in both
sites. Ex. Bulletin board, Internal
g Unification of the production area
uniforms for both plants.
newsletter, Portal Vallourec Inside
g Change
• Analysis of flows and processes for Brazil, etc.
in badges and badge holder
the improvement of internal and • Sharing complementary experiences
cords, with Vallourec and VSB brands,
external customer services. – professionals in both units.
standardized for both plants.
• Use of the Lean management tool to • Significant increase in the personnel
gain in performance. circulation among units within the
• Announcement of the merge group. g Announcement of the Vallourec and VSB
brand usage rules in accordance with the
between the companies to • Unified inventory management.
customers and suppliers • Standardization of basic basket. instruction manual.
• Reduction of lead time of industrial • Lavor’s service in Jeceaba.
processes between departments • Standardization of email addresses to:
and final customer. @vallourec.com.
GROUP WORKER
Name
SURNAME
Company’s Name
City
PN: Record:
10 1 year of new vsb | Special Booklet7
Focus on the
work groups
1 year of new vsb | Special Booklet 117 - Highlights Work Groups
Framework
Agreement
sponsors:
José márcio castillo
Auditing, Risks and Internal
Control Advisor.
hudson couto
Legal advisor
g Legal Compliance and Document organization.
g Facilitate legal transaction with NSSMC partner.
g Facilitate legal transaction with CADE, Banks, Commercial
Association, City Hall, State and Federal Government and
environmental agencies.
g Setup of Vallourec Soluções Tubulares do Brasil, starting
October 1st ,2016.
José Márcio castillo
“Our accomplishment was managing to reach our targets within the forecasted
deadline. This involved submitting the merge to the CADE, which is the
Economic regulating body. Some operations needed to be submitted to banks.
Our merit was having met the original deadlines of the project. Registers were
made at the Commercial Association and registry alterations made at the City hall,
State and Federal government. Finally, requests to alter the names on licenses were
made at the environmental agencies.”
Hudson Couto hudson couto / Legal advisor
12 1 year of new vsb | Special Booklet7 - Highlights Work Groups
VBR/VSB Information X NEXT STEPS
Technology Integration g Reorganize IT department to meet the requirements
of the new company. • Unification of the Quality
Certificate of both units
g Conduct tests and simulations to ensure traceability - Target December 2017
Other Information and avoid problems with key processes and their
possible impacts.
• Integration Florestal, Mineração,
Fundação, Lavor and Coovall
- Target January 2018
Technology initiatives g Unification of the SAP system (carried out in eight • Optimization post-merge and
process changes
sponsor:
months, half the time suggested by SAP).
rodrigo dorneles - Target December 2018
g Consolidation
Information Technology
Superintendent of the BPS, Business Intelligence and
APO systems.
g Adjustment in emails and corporate intranet.
“Our objective was to merge the two main systems the companies had. The great
challenge was to consolidate the system, from February to October 2016, so that the
new company could work as a unified entity. We accessed risks based on studies.
Decisions were shared. SAP made an offer to do the work for us, but the time frame
requested was 15 months. This would not do. We, then, did it ourselves in a
Rodrigo Dorneles
non-conventional way with seeking outside support when necessary. We did it all in
8 months!
It is important to highlight the intense participation of the teams involved insuring
the project success: We made the turn on the agreed date. We suffered some impacts,
but they were minor. All this went down very well. The video made by Mr. Philippe
Crouzet, the Vallourec president, was proof of that. He said that the project was
accomplished on the agreed date with little negative impact.”
Rodrigo Dorneles / Information technology Superintendent
1 year of new vsb | Special Booklet 137 - Highlights Work Groups
Finance and
Taxes g Integration of the Finance and Accounting teams.
sponsors:
g Centralization
rogério perillo
Account and Finance
of the whole finance department and
Superintendent relocation of 30 professionals from Jeceaba to Barreiro.
daniel vasconcelos
Advisor for Accounting and
g Regularization of the tax situation between Jeceaba
Finance Superintendence
(export market) and Barreiro (domestic market).
g Tax credit rebates.
g Reevaluation of corporate insurance policies.
g Unification of SAP system.
“The project had two phases. The first was the pre-merger. We carried out the team
Rogério Perillo integration process. During the year of 2016 (up to September 30th) we assembled
several working groups in the Finance, Accounting and Tax departments from
Jeceaba and Barreiro. Together we aligned and completed the integration process.
Our first objective was to have a new system to meet the requirements of the new
VSB without causing any disruption to the business. This was accomplished
together with the IT team. First, we made this integration in terms of systems,
technology and information flow. The second phase was the most important.
We had to integrate people in terms of culture: relationship, team work,
common commitment, improvement of quality and one team.”
Daniel Vasconcelos
Daniel Vasconcelos / Advisor to Accounting and Finance Superintendence
14 1 year of new vsb | Special Booklet7 - Highlights Work Groups
Controlling g Integration of Controlling and designation of processes such
sponsor:
hervè delhon-bugard
as Controlling, Economic, Planning, Product Engineering and X NEXT STEPS
Controlling and
Management System.
management Superintendent • New round of synergies and
g Implementation of controlling in Jeceaba and training of controllers in
Productivity, People Management and TQM (BSC).
centralization of controlling.
• Follow-up of corporate cost
reduction targets. Ex. LS 3.0,
g Implementation of BPS as the standard for budget control in Jeceaba. IndEX, Tracker Transfer Price
and Rota 108.
g Use of the Transfer Table as a performance tool.
g Unification of the Monthly Reports and KPIs.
g Discard of processes found in duplicity.
g Benchmarking in the German and French plants regarding the ideal
number of controllers.
Hervè Delhon-Bugard
g Improvement in management communication.
“In the beginning people were reluctant with the standardization we want to make. But after
they embraced the new ideas. This is an example of the value respect for people and
common commitment. The merge offered us an excellent opportunity to share experiences
among controllers in both units. This is in line with the value Standards and professionalism.
We had four controllers transferred from Barreiro to Jeceaba. With the standardization of the
controlling processes in both units we achieved faster consolidation of reports and
controlling guidelines- archetype Realization. Ex. Nowadays I receive guidelines from
Vallourec Corporate and immediately hand them down to all controllers. This makes the
information flow better.”
Alexandre Nogueira / COSTS MANAGER
1 year of new vsb | Special Booklet 157 - Highlights Work Groups
Maintenance
sponsors:
carlos ivan matoso
Central Maintenance
Superintendent
cláudio salzano
Central Maintenance
Superintendent until
June 2017
g Barreiro Central Workshop working for both plants.
g Unification of Central Maintenance areas. X NEXT STEPS
g Synergies among departments, unification of the
superintendency and coordination.
• Reorganizing Maintenance
Engineering directly linking
it to the Industrial Director
g Optimization of performance in maintenance activities
(cost reduction and optimization of existing resources).
aiming at improving the
performance of the rolling
mill.
g Unified
plants.
big stoppage teams prepared to work in both
Carlos Ivan matoso
“The project was developed in a very positive way. The relationship between both
project leaders was honest, professional and this allowed us to complete all the
actions within the deadline and the planned savings. In the beginning of the
project the team feared that they would lose their functions and their jobs. We also
had some difficulty moving people between Jeceaba and Barreiro to perform their
activities. Nowadays, since all management is unified, people already have the
commute between Jeceaba and Barreiro as part of their routine.”
Carlos Ivan Matoso / Central Maintenance Superintendent
16 1 year of new vsb | Special Booklet7 - Highlights Work Groups
Human Resources
sponsor:
eduardo ribas
Human Resources
Superintendent
until October 2017
g Unification of Human Resource departments. X Next Steps
• Actions forecasted in the new
g Reduction of HR departments in both plants. strategic HR plan completed.
• Monitoring the performance of
g Key role in developing synergies. the new processes for employee
assistance.
Eduardo Ribas g Unification and standardization of procedures. • Continuity in management of the
Cultural Transformation Program.
g Management
Program.
of the Cultural Transformation
“We had savings with resources and people. We also
improved the service for our internal clients. We simplified
our structure and managed to be faster in our processes
without lowering the quality of services rendered.
The development of synergies was our greatest objective.”
Giovanna Real / People Development manager
1 year of new vsb | Special Booklet 177 - Highlights Work Groups
Purchasing/
Contracts g Incorporate part of the Jeceaba purchasing department, which
sponsor:
functioned independently and functionally integrate around 12 X NEXT STEPS
bertrand mourier people with the Barreiro team.
Purchasing Superintendent
• Improvement in contract
g Integration of purchasing process systems. management- definition of one
manager for both plants.
g Announcement of the new company to suppliers. • Market research for companies
that have experience in the
g Adjustment of all contracts in both plants to the new company. supply to companies which have
two industrial plants such as VSB.
g Renegotiation
plants.
of contracts considering service to both industrial • Support actions related to LS 3.0-
169 actions planed involving the
purchasing department.
g Migration of supplies register- circa 120 k items registered.
Bertrand Mourier g Stockroom inventory and stock adjustment.
“From the moment you have just one company and one department this brings opportunities. There’s
nothing better than having just one company, one commercial manager and one technical manager for
each contract. Now we reach out to the market in search for solutions for a company that has two plants. I
think we can explore even more the negotiation potential of having just one biding process for just one
company. This will certainly help the LS3.0 cost reduction project. The fact that our internal customers have
merged too is also very good. It was really difficult for us to make truly unified contracts when we had two
separate departments with two separate managers although they tried to cooperate. Today, we are creating
just one entry way into the company for all suppliers. We don’t want suppliers to have to go through two
different processes to work for the company.”
Bertrand Mourier / Purchasing Superintendent
18 1 year of new vsb | Special Booklet7 - Highlights Work Groups
Energy, Utilities
and Infrastructure
sponsor:
lucas sampaio
Energy, Utilities, Infrastructure and
Environment Superintendent
g Integration of Energy, Utilities and Infrastructure
departments in both plants.
g Setup of regular follow-up routines related to working
environment, costs, quality and productivity.
g Unification of corporate contracts- mail, cleaning, sweeping,
upkeep of greenery, electric energy and Jeceaba DBOT.
g Reduction of operational risks and consequently reduction
of insurance costs.
LUCAS SAMPAIO
“We are managing to do more with less. Less in all senses, labor- our own,
outsourced, contracts etc. We have gained in quality, in the way we operate,
manage and do. We have gained in communication in both units. We have
facilitated understanding among the teams. Communication is the key to
success in any organization. It is important that we be role models for other
teams so that they may engage in the same objectives.”
LUCAS SAMPAIO / Energy, Utilities, Infrastructure and Environment Superintendent
1 year of new vsb | Special Booklet 197 - Highlights Work Groups
Finishing g Integration
floor areas.
of people, processes and operations in the finishing
“We have monthly meetings
Lines g Transfer of the Casing Coupling production from Barreiro to
Jeceaba- to balance the productive capacity of the plants. of the managers with the
team. We use this time to
g Use
sponsor:
mateus silveira of existing labor force through synergy avoiding hiring or
OCTG Tube Production
Superintendent
firing personnel. convey the strategic
guidelines of the company
g Sharing experiences and best practices. e.g. Barreiro employee
who was temporarily transferred to Jeceaba brought back a and talk about the results.
best practice about machine configuration when he returned to Since we have done well in
Barreiro.
our mission we had a major
gain- the Petrobras contract.
g Setup of routine production quality and method meetings.
Happening every fourteen days with the participation and We consolidated our
attendance of professionals from both units.
position by being a
g Unification of maintenance, reducing costs and improving solution provider and not
performance with professionals working in both units. only a tube supplier. If we
Mateus Silveira
had focused on the tubes
g Only one spare parts inventory; impacting cost reductions. alone, we would have lost.
g Setup of four big safety stoppages with the entire team to improve
communication about safety and other relevant issues.
We will render services,
preparation for shipping…
g Change in the purchasing procedure for threading protectors. To establish our mission in
the foreign market we need
g Testing: similar tools among plants, different lubrication practices,
standardization of other raw materials (grease, packaging items, to reinforce our archetypes
etc.)
and be highly competitive.”
g Adjustment focused on services aiming at meeting the
requirements of the Petrobras contract- e.g. Preparation for
Mateus Silveira / OCTG Tube
Production Superintendent
loading products.
20 1 year of new vsb | Special Booklet7 - Highlights Work Groups
BIP CAPEX – Due to the industrial remodeling of the Vallourec plants in Brazil (BIP-Brazilian
Industrial Plan) this project deals with the deployment of the necessary
Investments investments associated to the industrial synergies. The attempt to optimize
assets, to generate savings and to increase competitiveness are the pillars of this
sponsor:
fabiano pereira project. The optimization of the Jeceaba Steel Mill (100% of the billets for the
Engineering, Investments and
Technology Superintendent
three rolling mills for both units are produced in Jeceaba), this allows for the
shutdown of the steel mill and blast furnace in Barreiro.
g Implement the necessary project to adapt the Jeceaba unit to produce billets
for Barreiro.
g Implement the necessary project to adapt the Barreiro unit to receive and use
billets from Jeceaba.
g In addition, integration of Engineering and Investments departments of both
units (Barreiro and Jeceaba) was made.
g Adjustment of Jeceaba Steel Mill to produce billets for Barreiro.
Fabiano Pereira
“The main project, which is the adaptation of the Jeceaba Steel Mill to produce
bars for Barreiro, was completed in June 2017. Since then, bars are already being X Next Steps
produced in Jeceaba that are being rolled in Barreiro. We still have the bar-cutting • Adaptation of the billet
cutting lines in Barreiro.
line in Barreiro and traceability in Barreiro Plug Mill. We need to complete the • Traceability in the Barreiro
remaining projects and qualification of the products with the use of Jeceaba bars Plug mill.
for the customers of Barreiro. Once this qualification was concluded, the Steel Mill
and the Blast Furnace of Barreiro could be disconnected.”
Fabiano Pereira / Engineering, Investments and Technology Superintendent
1 year of new vsb | Special Booklet 217 - Highlights Work Groups
Industrial
Structure
sponsor:
lothar birkhäuser
Industrial ,Technology
and Upstream Director
g Redesign the industrial structure of the Jeceaba and Barreiro units
unifying the superintendencies.
g Setup an Industrial Technology department, integrating experts
and know-how from both plants, speeding up problem solving and
perfecting the interfaces with the other units of Vallourec group.
g Strengthen the automation processes by focusing on critical issues
offering quick responses to solve problems.
Lothar Birkhäuser
“To support the transformation of Vallourec in Brazil and consolidate the
new industrial design of the Jeceaba and Barreiro units, it is necessary to
also work to redefine the structures that would better support these
changes having the participation and consent of NSSMC.”
lothar birkhäuser / Industrial ,Technology and Upstream Director
22 1 year of new vsb | Special Booklet7 - Highlights Work Groups
Operational g Systems Unification of: billing, sales, production,
planning, invoicing for material dispatch and of systems
of billing, sales, production, planning, issuance of
g Adjustments that enable industrial synergies in times
of decreased demand.
and Sales material output invoices.
g Unification of equipment inventories.
g Adjustments regarding confidentiality of commercial
g Unification of transportation contracts of personnel,
Planning/ order systems between the Barreiro commercial team
and their NSSMC counterparts.
products and cargo transport.
g Appointment of one Internal Logistics Manager for
Logistics g Organization of the system regarding the placement of
orders versus production in a given plant.
both plants.
sponsor:
g Appointment of one External Logistics Manager for
adriana magalhães
Logistics Superintendent g Adjustment regarding the possibility of a product
beginning its production process in one plant and
both plants.
finishing in the other.
g Know-how sharing with the Jeceaba team regarding
the export process.
g Unified inventory check.
g Change in the allocation model for tubes in the Rio
g Unification of billing in both units. de Janeiro port, considering new dispatch volumes
and consequent cost reduction.
g Integration of sales, production and finances planning.
g Consider the three rolling mills as integrated units for
planning purposes.
X next steps
Adriana Magalhães
• Data harmonization in the post-merger
“Long before the shutdown of the blast furnaces and steel mill in Barreiro, an system.
• Development of KPIs considering the
announcement was made to all. This showed enormous respect for people and new reality. E.g.: Integrated view of a
demonstrated transparency. There was clarity regarding what would happen, so all sales order that leaves one site and is
produced in another.
people had more time to make decisions. For instance: relocating employees from the • Adjustments to support the shutdown
blast furnaces and steel mill, transferring people to Jeceaba and considering retirements, of the blast furnace and steel mill in
which are normal and natural. This was a tremendous demonstration of respect. All Barreiro.
people got information and managed to work with it in the best possible way.”
Adriana Magalhães / Logistics Superintendent
1 year of new vsb | Special Booklet 237 - Highlights Work Groups
Quality
sponsor:
júlio márcio silva
QUALITY SUPERINTENDENT
Industrialization
sponsors:
júlio márcio silva
g Harmonization
in the system.
of 17 quality procedures
X NEXT STEPS
INDUSTRIALIZATION
SUPERINTENDENT
• Conclusion of qualification
g Use
marcelo ferreira
of a single Quality Manual for the
Steel Manufacturing
processes with the clients.
Processes Manager new company.
• Continuity of the
industrialization process.
g Qualification and certification of more
than 250 clients.
g 220 items industrialized in the Barreiro
and Jeceaba Plant.
“We had to tell our clients what the new company was, and what would change
in terms of Quality. We had to reassure our clients regarding the quality matter.
We discussed all these issues with NSSMC, in Brazil and in Japan, in order to
Júlio Márcio Silva define how the communication with the clients would be. Quality documents,
marking, licenses... Everything was covered within this work. We had to
determine how the certification of tubes manufactured in Barreiro and Jeceaba
would be. We checked, with the normative entities such as API, how this
certification would be. The products wouldn’t be from VSB or VBR, anymore.
They would be from Vallourec Soluções Tubulares do Brasil. All this was
discussed and agreed upon with NSSMC.”
Júlio Márcio Silva / Quality Superintendent / INDUSTRIALIZATION Superintendent
24 1 year of new vsb | Special Booklet7 - Highlights Work Groups
Barreiro Blast Furnaces
and Steel Plant Shutdown
sponsor:
cláudio musso
Steel Making Superintendent
g Shutdown of Blast Furnace 2 in Barreiro in February
2016. X next steps
g Maintaining a positive work environment; striving to
maintain good safety results while performing all the
• Continuation in the personnel
reassignment process.
planned industrial processes. • Shutdown of Blast Furnace 1 and Steel
Mill in Barreiro by June 2018.
g Assessment of the opportunities within the group, for
the reassignment and relocation of personnel.
Cláudio Musso
“Our main focus of the work was on people; maintaining a positive work environment and
good communication, creating synergies while maintaining safety. Unifying structures,
aiming at the best opportunities for all people and also retaining people know-how in the
company. Besides the unification of the Steel Making superintendencies in both sites, the
Maintenance, Pig Iron Production, Steel Making Quality, Pellets Commercialization and
Co-products Sales departments were also unified.
There was strong collaboration with the HR department and we have already concluded the
relocation of many people from the Steel Making Superintendency in Barreiro to the Steel
making Superintendency in Jeceaba. Relocation has also been made to other areas of the
company and the group.”
Cláudio Musso / STEEL making SUPERINTENDENT
1 year of new vsb | Special Booklet 257 - Highlights Work Groups
Adaptation of Forests –
Rota 108
sponsor:
moacir nascimento
Vallourec Florestal
Superintendent
g Setup of the Rota 108 project - Reduction of the sales price of
charcoal to VSB. X next steps
• Ensure the implementation of the
g Reassessment of all operational and administrative processes
focusing on cost reduction (Carbonization, Forestry, Harvest
actions planned in the project.
• Keep the follow up/evolution of the
and Support).
actions.
• Keep the whole team on track making
g Adjustment of Florestal management structure, adjusting the
number of superintendencies, departments and support teams.
sure not to lose focus of the project
objectives.
• Strengthen a routine of idea
g Promoting events with the participation of operational team and
administrative team, with the purpose of presenting the current
development in each department and
setup a workshop to share experiences
status of the project, next steps and highlighting the importance
among the leaders of the Rota 108 and
Moacir Nascimento of VFL in the transformation process of the Vallourec Group.
LS 3.0 projects.
g Development of ideas of cost reduction during the
implementation of the Rota 108 project.
“The Rota 108 project is being developed in order for charcoal to regain its competitiveness in steel
production, versus the alternative route which is the use of scrap. In addition, it has helped management
to work with method, discipline and cooperation. This will ensure the sustainability of the results in the
long run. The Vallourec Florestal unit team is proud of the work currently being developed and we have
certainly become more seasoned to achieve the results needed to reach the target.”
Moacir Nascimento / Vallourec Florestal Superintendent
26 1 year of new vsb | Special Booklet7 - Highlights Work Groups
Program VSB’s competitiveness is essential to the survival of the company.
Low International oil prices; Critical political environment in Brazil;
Management Severe economic crisis; Petrobras, our main client is in a delicate
situation; automotive industry and industrial sectors affected by the
— IMPORTANT
MILESTONES OF THE
sponsor:
GDP fall; Overcapacity of the steel industry in Brazil. This was the
rubens frreira filho
Advisor for Strategic Affairs and scenario when the VSB Transformation Project was deployed.
TRANSFORMATION
Manager of the Transformation
Program for the New VSB. PROGRAM
We received the mission of creating, in Brazil, a highly competitive
hub in premium solutions. Hence four goals were established:
Establishment of the commercial
agreement between Vallourec and
NSSMC.
MAKING AN INTEGRATED MANAGEMENT OF VALLOUREC IN Feb/2016 – Shutdown of Blast
BRASIL POSSIBLE (SYNERGY) Furnance 2 in Barreiro.
Merging the two plants and creating a new company with a single CNPJ, with the
10/01/2016 – Integration of SAP /
continuous industrial cooperation of NSSMC. Bringing together all the support functions,
company and signing of the
implement the unified SAP, streamline processes and change the culture.
agreement with NSSMC.
Rubens Ferreira filho
TRANSFORM JECEABA INTO A PREMIUM PRODUCTS
Jun/2017 – Investment in the
MANUFACTURER
adaptation of the Continuous Casting
Produce new steel grades and create a new Rolling Mill and Finishing Line. Create for the production of 180 and 220
and develop new steels to meet the requests coming from Europe and the USA. Enable millimeters round billets in Jeceaba.
Jeceaba to have a relevant production of Line Pipe tubes.
SECOND HALF OF 2018 –
OPTIMIZE OUR INDUSTRIAL STRUCTURE Shutdown of the Steel Mill in
To reach this goal, it is necessary to optimize the occupation by shutting down Barreiro and resume operations of
The two Blast Furnaces and the Steel Mill in Barreiro and concentrating steel the Blast Furnace in Jeceaba.
production in Jeceaba.
IMPROVE COST EFFICIENCY
Reach the cost reduction program targets. Make synergies with the work force in
production and in the support areas. Adjust investments.
1 year of new vsb | Special Booklet 277 - Highlights Work Groups
“When I was informed that I would be the leader of the Transformation Program of the new VSB, I
asked myself, ‘What is that?’, and I looked for literature on the subject. In the first page of one of the
books there was the following sentence: ‘If you are reading this book it is because you’ve been
invited to participate in a merger and acquisition program. If it´s true, congratulations! Few people
work in such programs. But, don’t celebrate just yet ... ‘
The author states that in 100% of programs of this nature, 65% fail and 95% of these failures are due to
a communication problem. Besides that, the author mentions that in such projects involving values
higher than 250 million dollars, it is imperative to hire a specialized consulting company. In our case,
our guidelines were to do the job without the support of a consulting company, so I set out to
discover what were the most common reasons these processes failed. The issue is not simply an
economic one, but rather lies on the cultural factor: people need to feel like one team. The company
continues to operate and have good results, but uniting two different teams and getting everyone on
board is the big challenge. We have already made advances in this direction. The synergies were
important in the management processes and in the feeling of individual belonging, within the work
teams. Joint meetings also help in this sense. I believe that of all of our challenges, besides reaching
the economic target of LS 3.0, it is paramount to make everyone feel part of the same company.
We Are One Team.”
Rubens Ferreira Filho / Advisor of Strategical Affairs/ General Manager of VSB Transformation Program
28 1 year of new vsb | Special BookletEXECUTIVE
BOARD
Alexandre de Manfred Leyerer João Perez Júnior Lothar Birkhäuser
Campos Lyra Chief Financial Officer Commercial and Upstream Industrial and
Senior Vice President Downstream Operations Technology Director
of the Vallourec Group Director
in South America
T he first step of the challenge was concluded very successfully. As milestones of this phase, we highlight the SAP system
integration and the creation of a single CNPJ for the New VSB.
The second phase is now! Among all the planned actions still to come, our main mission is the achievement of the cost
reduction targets. Ensuring that our products have competitive prices is paramount to the New VSB so that we are strong
both in the domestic and global markets.
Last but not least, regarding the Cultural Change Plan being implemented, its very important to highlight the One Team
feeling idea. We have to meet this challenge head on and for this we rely on the engagement of each and every employee of
the new company.
We are all one company! We are One Team!
Board of Directors of Vallourec Soluções Tubulares do Brasil – VSB.— VSB CONCEPTS GLOSSARY
API: American Petroleum Institute DBOT: Design, Build, Operate and Transfer. a shareholder of the Vallourec group, a of calculation of prices for products and
APO: system connected to the production To transfer to a specialized company, VSB special client, a strategic partner in services imported or exported between
planning all the prospection, harvesting and treatment the development of technologies and a companies considered to be bound by the
Archetypes: model or image of something of waters and waste processes. competitor in the seamless steel tubes transfer pricing law in Brazil.
that molds people’s culture. Downstream: “end of flow”. In our business, market. Transfer Table: performance/savings
Benchmarking: is the search for best the term is related to finishing lines. PMO: abbreviation of Project Management measurement tool using fixed and variable
practices that lead to superior performance. Slag: by product generated of steel Office which is the sector responsible cost control.
BIP: Brazilian Industrial Plan, has as production. for defining and maintaining the project Upstream: in our business, the term refers to
objective the increase of competitiveness of IndEX: Vallourec cost reduction corporate management standards in the company, in steel making production and also the rolling
Vallourec in Brasil through the optimization program. order to optimize the control and execution of tubes.
of the steel making area, and the consequent Knowledge Blocks: are groups formed by of the organization as a whole or of one VMS: Vallourec Management System.
shutdown of the Steel Mill and Blast Furnace experts from the company departments specific area.
in Barreiro. who are implementing the cultural change Premiumization: making something
BPS: Business Planning and Simulation, actions raised in the Lever Groups. Premium. Term used in regarding the need
budget control model used by the Planning KPI: Key Performance Indicator. to adapt the Jeceaba plant to produce tubes
department which was not used by Jeceaba Lead Time: waiting time. It is used to with advanced technical specifications that
plant. monitor the delivery flows to internal and characterize our product as Premium.
BSC: Balanced Scorecard means balanced external clients. Responsiveness: is the responsibility
performance indicators Lean: short form of the international without fear. In psychology, it refers to
Business Intelligence: set of management management tool known as Lean comprehensive attitudes that aim to promote
reporting tools and KPIs. Manufacturing which seeks to improve and develop autonomy and self affirmation.
CADE: acronym which stands for Conselho process performance. Rota 108 (Route 108): project created to
Administrativo de Defesa Econômica. It is Lever Groups: Leverage means to boost, develop ideas and implement actions that
the Brazilian federal body, with purpose encourage, promote, instigate. The lever aim at reducing the production cost and final
of guiding, supervising, preventing and groups were formed aiming at boosting the price of the charcoal in Vallourec Florestal.
investigating abuses of economic power. cultural change in the new company. S&OP: Sales and Operational Planning
CAPEX: CAPital Expenditure. It indicates Line Pipe: tubes produced by VSB with SAP: the main VSB data processing system
the amount of money spent on the purchase specific technical characteristics for used by almost all departments of the
of machinery, equipment, building materials, transport of oil and gas. company.
industrial facilities of a certain company. LS 3.0: program created to generate ideas Sponsor: In project management sponsor or
Cascading: creating a cascade effect for the and action plans with the aim of reducing patron is the person who supports a project
handing down of information to teams and the production costs and final price of tubes inside the organization.
coworkers. in VSB. LS is the acronym for Long Sausage. Stakeholders: it refers to interested parties.
Casing Couplings: parts produced by VSB The “nickname” was given to the program They are all the groups or individuals a
that belong to the connections between due to the extensive unfolding resulting company or entity affects or is affected by.
casing tubes for oil wells. from cost assessment in each step of the TQM: Total Quality Management.
Continuous Casting: industrial facility in the production process of the tube. Traceability: capacity to trace the
Steel Mill area responsible for transforming Mindset Map: tool designed to disseminate background, application, use and location
liquid steel into solid billets. the basic concepts fundamental to cultural of an individual commodity or a set of
Controller: professional from the Controlling change. It is important that each employee characteristics of commodities, by means of
area whose function it is to coordinate the understands the purpose of the Mindset Map identification.
management process, in the economic, and uses it as a guide in this or her routine Tracker: Reference tube for process
financial and patrimonial aspects. actions at work. monitoring.
Coovall: Vallourec Employees Credit NSSMC: acronym corresponding to Nippon Transfer Price: or Transfer Pricing, is
Cooperative. Steel and Sumitomo Metal Corporation, the general name given to the methods
30 1 year of new vsb | Special Booklet— think
fast!
— what are the
3 ARCHETYPES desired for
the building of the new
culture for the new VSB?
People who answer correctly will
take part in a raffle for the new VSB
polo shirts of New VSB.
Send your answer with your name, extension and personal
number to the WhatsApp of the communication department: 9 9854 9699You can also read
