Operational Excellence: Taking Productivity, Reliability and Asset Utilization to the Next Level at a Large Multi-Site Chemical Operation
Situation
- The company was under extreme pressure to improve operations to create additional capacity without capital, improve productivity and EBIDTA
- New leadership recognized the need for operational efficiency and reliability improvements to improve plant operating performance
- Speed and agility was to needed to accelerate change
- Sustaining the gains was a top priority, and the goal was to engage the entire organization in the improvement activities
Argo’s Solution & Approach
- Argo leveraged our Best Run Chemical Operations Playbook and benchmarked the client against best practices to create a roadmap and implementation plan to accelerate change and performance improvement
- New Operating Models and Best Practices from Argo’s Best Run Chemical Operations Playbook were deployed to improve processes and systems, and build a a culture of continuous improvement
- Argo’s Operational Excellence Framework was used as the yardstick to prioritize and implement improvement initiatives
Major Initiatives implemented:
- Performance Management System to drive ownership and create an accountability dialogue to improve operations (KPI”s/Cadence/Visualization)
- Reliability Effectiveness Program to identify and mitigate bad actors, develop preventative treatments for critical equipment and shift to a proactive and predictive culture
- Maintenance Productivity Program focused on best practice planning, scheduling, good work orders to improve right first time, eliminate rework and maximize time on tools
- Overall Asset Utilization improvement program mitigate production losses
- Operational Discipline with clear roles and responsibilities and Operator Care model to eliminate defects at the source
- Training development and coaching leaders and employees to take-action and achieve lasting change
- Rigorous Continuous Improvement Program to engage the site in performance improvement
RESULTS AT A GLANCE
$46.9 MILLION
Annual pretax earnings improvements
79% to 94%
Overall Asset Utilization
17%
Productivity Improvement
42% to 77%
Preventative Maintenance Workorders
40% to 6%
Decrease in P1’s
21%
Yield Improvement