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Petrochemicals

NEEDS-BASED RESULTS

 

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.
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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.

Achieved savings of

€4.8m

by implementing a System for Managing

Thank you for your help. You made the difference.

Corporate Human Resource Vice President

Related Information

industry-based

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.