Our client desired to improve the efficiency and effectiveness of the manufacturing assets across the business and leverage best practices to improve safety performance and profitability.
The Situation
Our client desired to improve the efficiency and effectiveness of the manufacturing assets across the business and leverage best practices to improve safety performance and profitability. The resulting implementation projects ranged from 24 to 40 weeks and were used to train internal resources to implement operational excellence.
Approach
Over two-plus years, Advisian completed analyses of six assets in three countries, focusing on safety performance, production capability, maintenance efficiency, asset reliability effectiveness and organisational effectiveness.
We developed asset-specific business cases based on identified improvement opportunities.
Typical benefit areas included:
- Increased production capacity
- Reduced mechanical downtime
- Improved product quality
- Improved raw material yield
- Reduced operating cost including labour cost
- Reduced energy consumption
- Improved logistics efficiency
Results
This program delivered $29.3 million in cumulative benefit over two years and is currently running at $32.6 million in favourable annualised EBIT impact.
- Created best practice manuals for production, safety, maintenance, reliability, organisational effectiveness and supply chain with plant-specific updates
- Trained front-line supervision on behaviours required to be highly effective supervisors
- Rolled out improved root cause analysis tools and coached to ensure correct behaviours
- Installed reliability program to drive correct PdPM work in the computerised maintenance management system and completed on time based on risk and cost
- Implemented short-interval controls in production units to enable the operators to effectively control the production rate and raw material yield
- Redesigned the organisation to clarify roles and responsibility and optimise cost
A few highlights (specific to one of six assets):
- Decreased emergency maintenance losses by 55%
- 5% improvement in raw material consumption
- 20% increased production capacity
