Background
The client is a technical service provider supplying energy companies with a range of services from planning and assembly to servicing, maintenance and repairs of technical assets. The company is structured into three divisions and employs around 200 people. Unbundling within the parent company has led to the introduction of further service and product offerings, new staff have had to be integrated and processes have been modified, which, coupled with the pressure to reduce prices, has made it essential to increase efficiency.
Due to the expertise in process optimisation, T.A. Cook was commissioned to develop and implement sustainable and quantitative process improvements.
The challenge
The objective was to achieve cost savings of 800,000 euros in the gas plant sector. Meaningful key indicators for the daily planning and control of resources were lacking and a robust operations management system for day-to-day planning, control and reporting with set targets was not in place. In order to reach the desired savings it was essential to improve daily processes by installing management systems, efficient processes and establishing clear areas of responsibility and relevant training programmes.
The approach
The T.A. Cook team first needed to identify critical value-adding activities such that it was possible to pinpoint and analyse process and managerial weaknesses within the company. T.A. Cook reorganised functions, tasks, processes and systems in alignment with corporate goals and customer demands.
Following the initial analysis, the contract variation and additional service management process was first reorganised before the end of the building season. The shift from passive to proactive management was achieved by implementing a system that actively controls variation orders and increases transparency. At the same time operational staff were trained and made more aware of the importance of timely and accurate handling of issues related to variations and supplementary services. Regular staff meetings were introduced and responsibilities within the contract variations department were clearly defined.
A further key goal was to raise the efficiency and productivity of staff. To this end, T.A. Cook introduced metrics to allow close to real-time management of the day-to-day business conducted pre-dominantly by various supervisory level staff. Four key indicators were defined: planning, performance, productivity, and seasonal factors. Through daily talks with staff, focusing on these four indicators, it was possible to gather the necessary information to implement systems to control construction activities almost in real time. The introduction of Short Interval Control made it possible to recognise variances early on allowing timely action, for example, to correct low staff productivity.
T.A. Cook guided the client through the whole change process. To ensure sustainability, T.A. Cook trained and supported staff on site in the use and application of the new management techniques.
In order to support the process re-design and organisational improvements, T.A. Cook designed and introduced a comprehensive management education and training programme. This defined expectations and supported supervisors and managers in relevant topics such as basic planning criteria, the necessity of key performance indicators and proactive management.
The organisation structure of the company was previously dominated by the lack of clearly defined roles of Division Managers, Supervisors and technical personnel as well as by superfluous, overlapping activities, multiple interfaces and redundant work practices. In order to ensure that fitters, mechanics and electricians were working to full capacity, T.A. Cook designed a more efficient organisation structure, including more precisely defined processes, job descriptions and responsibilities.
The project was completed within six months on time and on budget.
For more information contact:
Rupert Clark
Marketing Manager
Direct: +44 (0) 1183 260 229
Mobile: +44 (0) 7792 926 696
r.clark@tacook.com |
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