Container reduction in remote locations save £1m!
A UK FTSE 250 world leading provider of mobile power solutions with a staff of 6000 who deliver solutions to clients in over 100 countries.
Within weeks of being appointed, Odesma had undertaken significant analysis of the procurement operation and third party spend data. This identified a number of areas where significant savings could be made.
When a new operation is being commissioned it can mean shipping and installing equipment and supporting facilities in just about any kind of location or climatic environment around the world. At the start of the project, power generation equipment is delivered to a new site. The required tooling, repair and workshop facilities are also transported to the client site in a series of containers.
A savings opportunity was identified by reducing the number of containers used for this process. This included reducing current cost (specification, layout and content) of existing ‘Facilities Containers’ supplied for power project commission requirements. Currently three containers supplied: 1) SPINOP (including consumables and tooling) 2) Repair Workshop 1 (including maintenance tooling and repair area), and 3) Workshop 2 (additional repair area / roof structure transported in separate container).
Use of available space also sub-optimal with excess tooling provided in many cases (for example, both gas and diesel tooling provided for each requirement).
To identify cost saving opportunities within the organisation.
Following a Kaizen event (to quickly “tear down” and rebuild a process layout to function more efficiently) a number of savings opportunities were identified including consolidating SPINOP and Workshop 1 into a single container layout (for 20 Megawatt layouts) and additional lower cost option for larger projects (40 – 50 Megawatt).
A further savings opportunity was identified to reduce tooling content and negotiate improved cost.
The Odesma Maintenance Repair and Operations expert (MRO) specialist worked with the client’s Operations team to develop the solution for streamlining this key component of a project start-up and on-going operation.
All operational effectiveness and regulatory compliance requirements had to be considered fully to eliminate any risks from the proposed changes.
From a starting date of November 2015, the new approach was approved for operations in May 2016.
- The project resulted in total annual savings from container costs, logistics, labour and tooling and Bill of Material BOM improvements.
- The project also provided valuable insight to the client procurement team, showing how the re-engineering of a process can drive significant annual cost-savings.
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