Petrochemicals
SITUATION
A petrochemical company needed to increase productivity, reduce fixed costs and gain control over subcontractors in Maintenance and process technology.
DRIVER GOAL
- Improve shift productivity.
- Control subcontractors.
- Reduce overtime.
RESULT
- Achieved productivity savings of €3,000K.
- Reduced costs of contractors by €1,300K.
- Reduced overtime by €500K.
Case Study
Increase Productivity & Reduce Costs in Production & Maintenance
Issue
One of the largest, global petrochemical players needed to increase productivity, reduce fixed costs with the installation of a Lean shift organization, and gain control over subcontractors in Maintenance and process technology areas.
Highland Approach
Highland assessed the operation and designed an installation strategy to address requirements of the social plan and new organization.
Actions Taken
- Created a Crisis Team with local management, a corporate lawyer, top management decision makers and a Highland specialist in social plans and union management.
- Developed an ambitious installation schedule based on legal requirements.
- Designed a communication plan addressing workforce, local authorities and media.
- Created an action plan to deal with pending problems polluting the negotiation process.
- Developed a compensation scheme to seduce the majority of shop floor employees.
Worked with local management to implement a robust action plan to optimize Maintenance costs:
- Defined and implemented a System For Managing to measure and improve performance.
- Launched tenders to challenge or change embedded contractors;
- Changed the contractors’ contracts;
- Leveraged SAP especially in designing proper task lists and bills of material;
- Revised payment of contractors according to task lists;
- Made time for supervisors to be on the shop floor to control the quality of work orders;
- Put in place a Service Level Agreement with Production.
