A leading Australian integrated energy company. The client has operations that span exploration, production, generation and the sale of energy to millions of households and businesses across Australia. The company is committed to creating a rewarding workplace for its people by valuing their contribution, encouraging personal development and recognising good performance.
The client was experiencing significant issues managing plant maintenance and refurbishment work that was outsourced, this was tying up significant amounts of management and staff time having to rework repairs that weren’t done right the first time. Even though the site had labour capacity to perform the work, there was a commonly held belief that the current work areas were too small to be used for the refurbishment work.
“Gaining the ability to be able to perform the work on-site would give far greater value than just eliminating the direct cost of outsourcing. The amount of management time in planning, conducting and then quality checking jobs is at least 3 times the direct costs, to say nothing of the knock-on effects to meeting plant up-time targets.”
The Improvement 123 Create Order approach was used to introduce the teams to needs and benefits of re-organising work areas in a more efficient and pleasant manner. The teams were immediately supportive, as a solution to the issues that affected everyone was now seen as possible.
Through Create Order, immediate benefits were seen through sales of scrap and obsolete equipment, totalling $20,000. This helped to fund the fit out of a new workshop building, designed with a ‘work-flow’ layout, from cleaning bays through to strip-down, overhaul and rebuild areas, minimizing waste and providing a simple, clear lane-ways approach to managing the refurbishment work.
All outsourced refurbishment work was then able to be transferred to in-house, with no disruptions or significant costs over an 18 month period, and with no increase in labour numbers required.
123 Kit: Create Order
Integrated Energy Company
$20,000 immediately reclaimed and used to help fund state-of-the-art workshop
Outsourced work transferred in-house, Eliminated effort of managing contracted work