Case Study: A Comprehensive Approach to Overcoming Challenges in the Chemical Industry
Challenge
The client was grappling with escalating costs due to reliance on maintenance contractors and underutilization of their in-house maintenance team. The operations team was underperforming with an Overall Equipment Efficiency (OEE) below 65%. The reliability strategy was unclear, and the aging workforce was a concern, with an expected 40% retirement in the next three years. The plant, being the starting point of the process and the company’s flagship, was under scrutiny.
Approach
A comprehensive five-fold approach was adopted to address the issues:
Maintenance Execution: This involved refining the work order process, enhancing maintenance planning and execution, managing contractors effectively, and establishing criteria for maintenance prioritization.
Reliability: The focus was on formulating a robust reliability strategy and updating the Functional Location (FLOC) and Bill of Materials (BOM) in SAP.
Operations: The aim was to boost the OEE.
Organizational Design: The organization structure was reassessed considering the anticipated employee turnover.
Change Management: A transparent communication strategy was implemented for senior leaders to effectively communicate with employees.
Impact
The strategy led to significant improvements:
Employee wrench time increased by 50%.
Dependency on contractors was cut down by 75%.
A Preventative Maintenance plan was developed, leading to a 30% increase in planned work.
OEE improved by 35%.
The organization was redesigned to streamline processes, establish a system of work, and clarify the reporting structure.
“With your help, we realized where we could improve and you worked with the team to get there. We are set up for the next 10 years.”
