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 Maintenance Services – Heavy Industry
 (engagement carried out by people now employed by Partners in Performance)

Context / Scope of project

This government-owned corporation, a national electricity generator operating in the sensitive and publicly visible energy sector, was undergoing significant industry, organisational and operational change and was mandated to deliver commercially focused outcomes.

There were significant issues in the supply constrained labour and capital categories, which had the potential to adversely impact revenue, most significantly availability of generating assets from maintenance periods.

Supply base was a mix of specialist technical providers of goods and services, and generalists both Australian and international in origin. Incumbent relationships and supplier performance were increasingly impacting operational outcomes, scheduled maintenance periods, and breakdowns, were increasing were increasing, as the organisation’s mission and objectives evolved.

Client achieved:

  • Savings of 16% in maintenance cost
  • 25% reduction in shutdown time
  • Operational improvement included development and implementation of planning and scheduling “IFOT” (in full on time) framework that enabled specific planning, scheduling and delivery outcomes, milestones and risks to be time phased, structured, and contractually incorporated into profit and overhead contingent remuneration
  • Created sustainable organisational capability included new organisational lead, and team, and determined role and responsibilities of “centre” and business unit
  • Knowledge base and process capability to institutionalise change program.

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What we did:

  • Structured cross-business unit program to incorporate “whole of business” requirements and gain commitment to individual projects that risked impact to operational outcomes
  • Work packages defined and quantified to provide a platform to assess generalists and potential specialist service providers
  • Evaluation criteria were established to ensure all competitors were evaluated on a transparent and objective basis
  • The negotiation process tested all identified potential opportunities
  • Profit was 100% contingent on KPI’s achievement, which include planning target achievement and compliance, schedule compression, continuous improvement, safety and environment, labour return rate targets
  • Recovery of overhead was 50% contingent on KPI’s achievement, which included delivery of safety and environment plans, quality and inspection plans and completion of paperwork

 


 
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