The steel wire manufacturing industry operates in a highly challenging sector, where maintaining high-quality standards must go hand in hand with the constant demand for operational efficiency and technological innovation.

In this case study, we explore how this company implemented continuous improvement initiatives, optimized existing processes, and expanded into new markets, achieving breakthrough improvements in both efficiency and profitability.

The company and its role in the steel industry

This company is a benchmark in the steel wire manufacturing sector. Since its founding, it has maintained a strong focus on product quality, applying the most suitable technologies to achieve this goal at the best possible cost. To ensure compliance with quality, environmental, and safety standards, it has developed a robust system that ensures compliance with certification standards, contractual obligations, and legal requirements, reinforcing its ESG commitment.

The company’s goal is continuous modernization, consistently seeking new products and markets, and adopting new technologies to enhance its operational, financial, and environmental performance, thereby contributing to broader societal improvement.

Challenges identified in steel wire production

The company was facing a series of challenges that affected both its growth and profitability, including:

• Stagnant sales: Sales had not grown significantly over the last three years.
• Low profitability: EBITDA was declining, leading to reduced overall profitability.
• Lack of market information: The company lacked precise data on market size, market share, and direct competitors, making strategic decision-making more difficult.
• Inefficient marketing planning: The absence of a structured marketing and sales process hindered efforts to enter new markets.
• Low production efficiency: Production was not operating at full potential, limiting the company’s ability to increase sales.

Root cause identification for process improvement

Following a thorough and detailed analysis of the challenges faced by the company, the following root causes were identified:

• Non-standardized production technologies: A lack of standardization in production technologies caused variability and negatively affected overall factory efficiency.
• Unoptimized changeover times: Inefficient changeovers were preventing an ideal production sequence.
• Quality problems: Pickling quality problems were impacting production at all levels.
• Lack of systematic processes for market knowledge: The company lacked a structured process to understand customer needs in the wire forming markets.
• Lack of cost control: Without a systematic approach to monitoring expenses and consumption, profitability was being undermined.

Proposed and implemented solutions

The company conducted and implemented a Strat to Action workshop to address the identified challenges. This workshop focused on developing practical solutions to address key issues and drive the organization forward. The resulting solutions were organized into several key initiatives, prioritized according to their strategic needs:

1. Improving the factory’s OEE (Overall Equipment Efficiency)

The analysis revealed a lack of standardization in production technologies, unoptimized and inconsistent changeover times, and recurring issues in pickling quality, consequently affecting the entire factory’s production.

As a result, it was necessary to train operators, redesign processes, optimize the production plan, reduce equipment breakdowns, and implement a comprehensive TPM (Total Productive Maintenance) model. An incentive model was also implemented for employees, linking their performance to compensation to increase motivation and involvement.

2. Expanding into the pulp market

In the absence of a structured process to understand customer needs and redesign products accordingly, the company held a low market share across several regions. There was also limited knowledge of the pulp market and insufficient technical expertise related to its products.

A deep understanding of the market became essential to tailor the product offering, with a focus on sectors such as trailers. The company expanded both its commercial and production capacity, with a strong focus on improving product quality and increasing output volume. Finally, local storage solutions were introduced to reduce response times, ensuring greater agility and optimizing the supply chain.

3. Expansion into the wire forming market and competitive advantage

The company lacked a systematic process for understanding customer needs and adapting its products accordingly. As a result, it held a low market share in several countries, prompting the need for targeted actions.

A deeper understanding of each region’s wire-forming products market was essential to align the product offering with local demands. This improved market insight led to increased commercial and production capacity, with a strong focus on both quality and volume. As a result, response times to customer requests were reduced, enabling the company to deliver more efficient and tailored solutions.

4. Reduction of operational costs

Another key challenge was the lack of control over expenses and consumption, along with issues related to lighting and wire quality in the machines used.

To address these problems, a systematic cost analysis and reduction process was established, with a strong focus on improving operational efficiency. Effective project management practices were also applied to ensure the successful execution of the cost-reduction initiative.

5. Expanding the culture of continuous improvement

Although Daily Kaizen had already been effectively implemented, its application was limited to production teams. There was no structured escalation mechanism to address unresolved issues, and performance indicators and metrics influencing strategic decisions were not tracked systematically or consistently.

To overcome these limitations, the Daily Kaizen model was expanded to include all teams across the organization. An effective communication method was developed and implemented, and the continuous improvement system was actively promoted throughout the company at every level.

Results achieved

As a result of the proposed and implemented initiatives, the company achieved the following outcomes:

• Sales increased from €41 million to €65 million, representing a 59% growth.
• OEE improved from 50% to 80%, reflecting a 60% increase in efficiency.
• EBITDA rose from €1.8 million to €4.9 million, resulting in a 172% increase in profitability.

Implementing Lean workshops, such as the Strat to Action, enabled this steel industry company to align its management approach with long-term strategic priorities. It also enabled the organization to develop a clear action plan for enhancing operational efficiency, increasing sales, and ensuring sustainable profitability.

This case study emphasizes the significance of structured strategic planning and the implementation of continuous improvement practices to achieve sustainable outcomes and boost long-term competitiveness.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.