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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

Operational Excellence Framework

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

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