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We are a global technology consultancy company that delivers exceptional outcomes and sustainable change

Case Study

A multi­na­tion­al con­glom­er­ate improved asset pro­duc­tiv­i­ty and trans­formed its con­tract man­age­ment process­es — in just 26 weeks

2023/03/27

KEY RESULTS

Improve­ments in asset pro­duc­tiv­i­ty after 26 weeks:

65% 

Roll-off truck
(vs 46% baseline) 

51% 

Crane truck
(vs 43% baseline) 

53% 

Wheel loaders
(vs 41% baseline) 

58% 

Excavators
(vs 45% baseline) 

About The Client

Our client is a multi­na­tion­al con­glom­er­ate that has a pres­ence in 18 coun­tries across South Amer­i­ca, Europe, Opening Soon, and Antarc­ti­ca. It is a lead­ing name in the field of envi­ron­men­tal man­age­ment, plac­ing ESG as one of its core busi­ness pillars.

To ensure effec­tive com­pli­ance, it also has busi­ness units spe­cial­is­ing in man­age­ment soft­ware — rein­forc­ing its role in envi­ron­men­tal man­age­ment through tech­nol­o­gy and arti­fi­cial intel­li­gence. it has reg­is­tered patents for sus­tain­able prod­ucts, pro­motes the cir­cu­lar econ­o­my, and helps com­pa­nies with the cor­rect des­ti­na­tion of their waste.

The client want­ed to inves­ti­gate the costs of the con­trac­tu­al oper­a­tions of one of its main cus­tomers that was affect­ing its con­tri­bu­tion mar­gin. We were brought in to per­form a gap analy­sis and help the client bet­ter under­stand how cost man­age­ment could be improved.

What Was Discovered

The sub­se­quent analy­sis high­light­ed the fol­low­ing issues in exe­cut­ing processes:

  1. Low-level usage of avail­able resources (machines, equip­ment, vehi­cles, and labour)
  2. High fuel con­sump­tion due to inap­pro­pri­ate routes and/or can­celled and changed ser­vice schedules
  3. High lev­el of rework of oper­a­tions car­ried out, due to non-compliance with SLAs (ser­vice lev­el agreements)
  4. Low com­pli­ance to world-class oper­at­ing require­ments which leads to low cus­tomer satisfaction

How We Helped

Based on the results of this analy­sis, we sat togeth­er with the client-side team mem­bers to map out a trans­for­ma­tion pro­gramme — tak­ing place over 26 weeks — that would help the client build new process­es. The two main mile­stones that we want­ed to hit were:

  1. Review and devel­op­ment of the Con­tract Struc­tur­ing Mod­el that cov­ered gov­er­nance, pro­ce­dures, and rela­tion­ships with customers
  2. Improve the pro­duc­tiv­i­ty of con­tracts by bet­ter man­ag­ing the process­es and mon­i­tor­ing devi­a­tions from per­for­mance, such as ful­fil­ment of deadlines

What Was Implemented

  1. New approach­es


    Using our patent­ed Focus Process®, we devel­oped a trans­for­ma­tion pro­gramme specif­i­cal­ly to pro­mote own­er­ship and sus­tain­abil­i­ty. We defined and devel­oped exist­ing process­es, pro­ce­dures, and key ele­ments of the man­age­ment con­trol sys­tem (MCS).

    We also devel­oped a Lean Man­u­fac­tur­ing approach to bet­ter define crit­i­cal objec­tives and needs. This step helped to fos­ter man­age­ment com­mit­ment and engage the customer’s work­force to car­ry out process map­ping, iden­ti­fy bot­tle­necks and under­stand where there was waste.

  2. New tools


    The val­ue stream map­ping tool was used to define the process and iden­ti­fy loss due to idle­ness, exces­sive dis­place­ments, and low avail­abil­i­ty. It also allowed devel­op­ment of a fleet dis­tri­b­u­tion mod­el which high­light­ed low pro­duc­tiv­i­ty and work­loads imbal­ances for oper­a­tions, plan­ning, and sched­ul­ing.

    New tools were also cre­at­ed to scale the nec­es­sary struc­ture to meet the needs of the busi­ness, bal­anc­ing the work­load to meet dead­lines and con­tract SLAs.

    The MCS that we devel­oped allowed actions to be tak­en based on process per­for­mance indi­ca­tors, which improved the effi­cien­cy and prof­itabil­i­ty of the con­tract. A short-interval review meet­ing mod­el was imple­ment­ed, so that the team was set up to act on root caus­es shown by the new MCS.

“The new oper­at­ing mod­el (with reli­able oper­at­ing per­for­mance indi­ca­tors) made it pos­si­ble for to quick­ly gen­er­ate results, which then qual­i­fied the mod­el to be imple­ment­ed for oth­er con­tracts with­in our company.” 

The Results

At the end of the 26-week project, the improve­ments in asset pro­duc­tiv­i­ty were encouraging:

65% 

Roll-off truck
(vs 46% baseline) 

51% 

Crane truck
(vs 43% baseline) 

53% 

Wheel loaders
(vs 41% baseline) 

58% 

Excavators
(vs 45% baseline) 

In addi­tion to an ROI of 3:1, these results also trans­lat­ed into long-term ben­e­fits. The client was now able to:

Improve the pro­duc­tiv­i­ty of equip­ment and vehi­cles used to pro­vide ser­vices and to trans­port waste for treatment 

Improve the pro­duc­tiv­i­ty of employ­ees in the customer’s contract 

Improve the ser­vice plan­ning and sched­ul­ing model 

Ful­ly imple­ment the MCS with con­tract per­for­mance indicators 

It estab­lished a cul­ture of con­tin­u­ous improve­ment, as well as a com­mit­ment to excel­lence. As a result, we enabled the client to improve over­all pro­duc­tiv­i­ty and reduce the num­ber of equip­ment and vehi­cles need­ed for its operations.

In the end, we were able to help the client achieve its objec­tive of redesign­ing the con­tract man­age­ment process­es, review­ing the process­es and respec­tive inter­faces, and allow­ing employ­ees involved in the imple­men­ta­tion teams to acquire key skills in man­ag­ing change.

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