Increasing plant and equipment reliability for higher availability, uptime and throughput.
The client, a major oil & gas producer, was facing limitations due to production inefficiencies.
An American multinational conglomerate with subsidiaries in petroleum, manufacturing, refining and distribution, was experiencing decreasing margins with high environmental costs at their refinery
An opportunistic crude trading strategy had led to swings in production resulting in numerous planning, scheduling and optimization issues
In addition, the organization was struggling to implement their current business model with poor linkage between annual and monthly business plans to meet financial targets and day to day operational activities
Their was also a lack of integration between the production & maintenance and planning and execution groups
Real change is achieved with a concentrated effort of small steps in the right direction in order to cultivate a pattern of growth.
The teams jointly developed a production loss system to identify and resolve production losses and optimize unit performance
Workers received training to implement the system sustainably
A new worker-focused communication system was built and installed, able to link employees with the current operational reality and therefore generate more buy-in and satisfaction
This resulted in behavior change and accountability around operational and financial performance. The team improved production capability through a rigorous approach as well as tools for production loss management, process optimization and equipment reliability
Total annualized savings – $19M exceeded base target ($18.4M)
Maintenance labor productivity improved by $7M far above target