Petrochemical Industrial Improvement Plan

Industrial productivity improvement for a petrochemical company

About This Project

Overview & Challenge

A leading petrochemical industry company faced deteriorating financial performance and needed help improving its productivity. Since the leadership hadn’t viewed manufacturing as strategically critical, the basics for operational excellence weren’t in place. To rapidly turn around operations, the company needed a roadmap to eliminate waste, increase asset utilization and achieve sustained cost savings.

Altair was asked to turn around the situation with the key goal of improving of the Industrial Asset Effectiveness (IAE).

Altair’s Solution

Approach

Bain collaborated with company on gathering data and carrying out a comprehensive bottom-up diagnostic in the following five interrelated areas:

  • Synchronous manufacturing:

– bottleneck identification and management

– total cycle time reduction by manufacturing batches

  • Staff effectiveness:

– plant organizational structure

– function and responsibilities clarification for each employee category

  • Maintenance:

– maintenance shifts coverage

– maintenance management online system

  • Industrial productivity:

– output of the process in terms of quantity produced per time

  • Quality (yield):

– raw material’s return

– production process control

 

Recommendations

Three main productivity improvement sources were identified and potential estimated. For each area, Altair devised a detailed action plan:

  • Plant utilization improvement

Daily production analysis: set daily production curve as a key production stability indicator, monitoring utilization rate closely

Plant IAE matrix: expand the Industrial Asset effectiveness indicator further to include incident matrix

Incident prioritization matrix: introduce detailed matrix for each incident code and incident prioritization mechanism by product and machine type

Improvement project proposals: forecast inventory to cover incidents

Incidents coverage matrix: Identify additional safety stock requirement by calculating level of coverage

 

  • Organizational model transition

– Evaluation of the potential savings from the use of the field workers available time in other activities.

– Assessment of the potential of improving occupancy of the maintenance external services.

 

  • Production planning improvement

– planning improvement through a better relationship with the sales department

– modeling the margin loss associated with the lack of an efficient process in the schedule of some product categories

Outcome

The project had a positive impact on the facilities productivity and also improved the organization and processes. Following the implementation of the action plan, there have been visible increases in all production lines of the three industrial facilities, with an overall productivity improvement by 19%.

Country

Spain

Date
Category
Oil & Gas

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