Background
One of Europe’s largest petrochemical sites recently changed ownership and subsequently needed to redefine the way in which it responded to the challenges of global competition. With new senior management in place, the strategic aims changed, several thousand employees and contractors were required to review their priorities and way-of-working.
Task
T.A. Cook was asked to support a company initiative designed to highlight operational improvement, reduce costs and initiate change. The work was scheduled to be completed over 24 months in a three-stage process:
• 3 months opportunity identification
• 3 months definition
• 18 months implementation
The first two stages have now been undertaken across most operational and site support functions such that a detailed implementation plan could be drawn up. The implementation stage, just started in 2007 Q2 requires pragmatic day-to-day support as well as targeted expert help in engineering and maintenance management and techniques.
Approach
With so many people having been subjected to at least four major change initiatives in the last seven or so years, it was imperative that the exercise overcame a natural reluctance and even fear to engage in further change. The previous inhouse methodologies were adjudged by T.A. Cook, the senior management and unions not to be sufficiently engaging and so significant time was invested in a five-stage approach designed to create buy-in:
• Interviews and data analysis
• Observations of actual work practices and process efficiency
• Demand & supply driven zero-base definition of organisational requirements
• Agreement of new processes, roles, responsibilities & performance targets
• Creation of detailed implementation plans
Findings
With previous initiatives having been only partially successful, there was indeed an initial sense amongst many staff that any attempt to become more efficient would be of little value. A significant effort was therefore made by the T.A. Cook team to facilitate true discussion and ensure genuine challenge to accepted practices and norms. A number of key findings became clear:
• Control of many elements of project work and spend needed to be transferred back inhouse from the contractors
• Support services needed to be aligned closer to the needs of the customer – the operating asset
• The scope and efficiency of maintenance, project and turnaround execution was compromised by differing perceptions of risk and business need
These findings were ranked, prioritised and translated into specific change requirements which had to be in place by the end of 2007, so that quantifiable benefits could be in place and measured by the end of 2009.
Immediate benefits
In addition to an improved appreciation of strategic aims and a reappraisal of operational and Health & Safety priorities the financial benefits identified, agreed and currently being planned include:
• 20% reduction in contractor labour hours
• 15% reduction in lost and non value-added time
• 15% reduction in reactive maintenance activities
• 10% reduction in site project and maintenance spend
• 3% uplift in asset OEE
T.A. Cook is currently working on the detailed improvement plans which encompass new process installation, training, coaching and the creation of improved maintenance schedules and engineering root cause analysis. Benefits cashed to-date are ahead of schedule and are expected to be transferable to other areas.
For more information contact:
Rupert Clark
Marketing Manager
Direct: +44 (0) 1183 260 229
Mobile: +44 (0) 7792 926 696
r.clark@tacook.com |
Case Study Download »