Contractor and Vendor Management
SITUATION
For many years, contractors at this integrated mining and metals business were left with no supervision to do their jobs with no visibility to their performance.
DRIVER GOAL
- Increase contractors’ on the job working efficiencies to deliver an extra €1.3 million through better planning and shop floor supervision.
RESULT
Devised and launched program that will:
- Recover €450,000 in wasted productivity through better management of contractors’ time.
Case Study
Improved Contractor & Vendor Management
Issue
For many years, contractors at this integrated mining and metals business were left with no supervision to do their jobs with no visibility to their performance. With the launch of a corporate-wide productivity improvement initiative, site management decided to focus on Contractor Vendor Management (CVM) as a source of benefits. The Highland Group was invited to look at CVM in the Roaster and Cell House where there was significant spend on contractors.
Highland Approach
The key was to get buy-in from the client at all management levels. A scope of work was defined with the General Manager, with metrics and methodology buy-in from functional managers including Finance. One of the client’s engineers was trained in Highland’s analytical process and assisted with a series of detailed studies of contractors’ working methods. This process uncovered 30% to 50% of lost time due to a mixture of inappropriate equipment, poor planning and scheduling, and little or no supervision.
Actions Taken
The Highland Group and the client built a business case defining target milestones and an implementation plan. The impact from this program has been fully accounted for in the 2012 budget, and individual bonuses have been linked in part to the results.
Because the process effectively aligned the different stakeholders from the beginning, a project team crossing the various functions was rapidly assembled to carry the project forward.
