PiP Speak

Transforming a business through people

Case context

A global pulp and paper manufacturing organisation needed to improve capital efficiency and increase productivity
  • They needed to commission a $2.3bn new production unit
  • Over 25 engineering, procurement and construction teams were involved
  • The project was behind schedule and the project manager was reluctant to enlist support


Challenge: Increase the net present value of the new asset





Business impact

A state-of-the-art, future-proofed unit delivered 60% increase in NPV from:

50%

increase in construction concrete supply


45%

improvement in site preparation excavation

$200m

reduction in Capex


40%

increase in wood supply

$1bn

increase in NPV by changing configuration

Overall impact achieved at different stages over an 18-month period
Savings that delivered 60% increase in NPV were identified within four weeks of working together



People impact

Long-term embedded behaviour change to deliver the highest performing unit in the group

  • Changed daily working habits across the organisation
  • Changed communication habits at all levels
  • Embedded a continuous improvement mindset
  • Shifted management focus to high-impact areas

Open communication of problems, issues and constraints in order to prioritise and solve at the right level of the organisation
Management focus was on the issues with the highest impact



How it was delivered

1. We combined and optimised deep inside knowledge with a fresh perspective of the possibilities on how to implement change and make it stick

1A. Efficiently optimise value - 'do the right project'

We identified the highest potential impact areas and prioritised delivery effort on these


1B. Refocus and work smart - 'do the project right'

Transparency, communication, accountability, alignment of engineering, procurement and construction contractors with organisation priorities


1C. Solve bottlenecks; optimise delivery - 'start the operation right'

Crystal clear view of drivers of success and vulnerable areas to be closely managed



shutterstock_511032442 zoomed2. We worked ‘on the ground’ and fundamentally changed mindsets and working practices

  • Designed and embedded communication protocol
  • Coached all supervisors
  • Resolved productivity issues
  • Front line, site appropriate project communication systems implemented
  • Reduced conflict, increased transparency and accountability


3. We got to know the truckers, the plantation and how the truckers worked

Problem
  • The trees to be picked up were in a range of one to several meters away from the road. The farther away ones where harder to reach – particularly in wet weather.
  • Truckers took trees from the edge as it was faster and simpler to do even when weather meant access to the farther away wood would be possible.

Solution
  • Incentivise delivery of trees from deeper in the plantation on ‘easy access’ days in order to allow the ‘edge harvesting’ on muddy days.
  • A simple marking system showed where the wood was coming from. Harvesters were rewarded for collecting to the agreed operating system.

Impact

40%

increase in wood supply productivity

This example refers to when we were asked to increase the productivity of the wood supply to allow accelerated ramp-up of the project






In a complex project of multiple interdependencies, time costs.

We identified where and how to save time and drive efficiency:

>2x

By optimising the trip cycle time and doubling the number of trips performed by the concrete delivery trucks...



50%

Production capacity of concrete rose by 50% and so could supply all production demands...



-63 days

This recovered 63 days in construction time.




 

OG Refinery quote icon

"The Rapid Optimisation of Capital Expenditure project allowed us to realise the potential increases in NPV that we did not see at the time."

David van den Abeele, Corporate Head of Finance

OG Refinery quote icon

"There is a bright future for the project because they brought you in."

João Antônio Braga, Project Leader






Have you considered...

What is the problem you most need to solve?

  • Silence between your frontline and management
  • Gaps where meaningful KPIs should be
  • Relentless prioritisation of business as usual when BAU won’t deliver in your changing market
  • Sense that more is possible but you don’t know where to start looking
  • Feeling your business is on autopilot
  • Broken connections in your operations diminishing productivity