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 Results - Turnaround of metal smelter   

Context / scope of project : This major metal producer was in severe financial problems and at the bottom of the commodity cycle, as a result of bad strategic and hedging decisions. Plant on site was old and maintenance had fallen behind. There were significant quality complaints on premium products and need for significant cost reduction to become profitable. PIP’s brief was to deliver profit and performance improvements by tackling throughput, quality, costs, capital and safety.

PIP and client achieved:

Cost curve rank improved from 55% to 15%

Annual improvement of $30.5m/yr

Free cash flow up by 123%

35-50% improvement across all key safety KPIs
Opex down $13.5m/yr, Production up $17m/yr

Capex down $23m

Average payback on initiatives < 4 weeks



   
   
     

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What we did:

Value Driver Trees – “where’s the money?”
Systematic improvement of current efficiency
Root cause analysis of repeat maintenance failures

Equipment-based maintenance strategies

Contractor Management

Safety – launched behavioural program, systematic reduction in repeat issues, safety systems, key protocols

Cost reduction – energy, consumables, maintenance, chemicals

ROCx – rigorous optimization of capital
Reviews – morning meeting, shift handover, weekly cascaded reviews
Contract negotiations


 
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