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<v ->When global refractory leaders RHI</v>

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and Magnesita merged in 2017, the number

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of plants in its production
network increased significantly

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leading to key challenges
that needed to be addressed.

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<v ->When the two companies merged, we got</v>

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to a much larger network, also

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with subsequent acquisitions,
than we had initially.

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And these plants were never
truly aligned in operational

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practices, especially maturity in health

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and safety practices.

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<v ->Other challenges included
a significant mismatch in</v>

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comparison data between sites,
differences, and processes,

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and quality and waste across the network.

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There was also an imperative
to cut cost from the system.

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<v ->The perceived solution was</v>

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to build up a global production system.

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so-called the Operations
Excellence System,

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and for those, we chose BCG as a partner

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to support us in structuring
it, in developing it,

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and very important, to share

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outside-in best practices
from other industries.

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First and foremost, inside

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of our operations excellence system,

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standardization has the highest
priority, always beginning

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with health and safety.

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Second, to do the right decisions

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and to compare fair with the
OES, we increase transparency.

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We will implement a digital
solution which will give us a

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standard set to have
the same information all

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around the globe embedded in the same way.

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The third one, which is
very, very important for us,

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to set up the base for a
continuous improvement way of life,

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to really have improvement
in our mindset every day,

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every hour, every minute,

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and to do it in a standardized, agreed,

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and aligned way all
around the RHI Magnesita globe.

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<v ->Following early feedback
from the shop floor deployment</v>

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of OES took place across the regions in a

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step-by-step approach.

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<v ->It has a set of guidelines
which will help us in improving</v>

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workplace safety,
improving the efficiency,

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improving the quality of
product, improving the lead time

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to our customers, and will
help us in improving our

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product delivery.

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<v ->It created improvements
across the plants</v>

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and people actively discussed health

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and safety topics, efficiencies,

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and also process improvements.

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<v ->The OES provide great improvements</v>

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in our plants, specifically
related to the environment

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and there is opportunity to

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increase specific KPIs
in our plant as well.

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<v ->Now we clean it, separate, test,</v>

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and send back to the raw material intake,

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which leads to a saving by 300

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to 400,000 euros per year.

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Most, probably more.

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<v ->Overall, OES achieves a
step-change in cost savings,</v>

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in a conversion cost of about
10%, which translates to 80

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to a hundred million euro per annum.

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<v ->These are wonderful three words,</v>

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Operational Excellence
System, a set of systems, set

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of guidelines, set of SOPs
to standardize operations

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to improve the overall
efficiency of operations.

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So that's what OES stands for.