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| Diagnostic for MARC maintenance provider
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Context / Scope of project
Our client, a mining maintenance contractor was not meeting the targets in a Maintenance and Repair Contract (MARC) with a multinational miner at a remote site. There were speed of decision-making issues, challenges to reaching and keeping a full complement of staff on site, and little formal contract management. These elements, amongst others, lead to the MARC contract being unprofitable for the client.
Client achieved:
The client now understands where they stand relative
to other MARC contractors in terms of margins and have a plan to change the MARC from money-losing to breakeven – which includes selling additional services, getting paid for all work and renegotiation of the contract based on PIP findings. Additionally, they have started to wire the organisation for high performance.
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The current MARC contract is losing money
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What we did:
- Reviewed the contract structural drivers to understand clearly what obligations were not met by our client and its customer
- Developed a value driver tree based on the MARC contract and identified the key levers for improving profitability
- Reviewed and recommended improvements in the 'organisational wiring' including KPIs, reviews, accountabilities, visual boards, shift handovers
- Mapped and identified 'pinch points' in key business processes, e.g. maintenance planning & execution, response to breakdown sub-process, managing attendance process, and recruiting skilled tradesmen process
- Developed an improvement plan with management.
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