Case Study: Improving Contribution to Margin

"Reliability Initiative Results in $2.5 Million Improvement in Plant Contribution to Margins"

Chemical Plant - Eastern United States

Problem: The largest plant in the corporation's supply chain was not meeting corporate expectations for contributions to corporate margins.

Action: The plant leadership council contracted Charles Rogers Group, a Genesis Reliability Group affiliate, to conduct a reliability best practices benchmark, recommend an improvement strategy and propose a business case for justifying the implementation.

After the plant leadership council decided to proceed with CRG's recommendation, they agreed to bring a Genesis Reliability Group consultant on-site as part of the implementation team.

Reliability Continuous Improvement Initiatives:

  • Operations and maintenance worked as a team to prioritize and schedule maintenance work based on risk to interrupting the supply chain. 
  • Operating units shared maintenance resources. If craftspeople and maintenance contractors were not working jobs that mitigated risk to the unit, they were assigned to other areas where achieving operating plans were at risk.
  • Operating unit maintenance planners restored to the role of increasing craftspeople efficiency and reducing dependence on contractors by developing job packages and job planning.
  • Implemented the critical few success measures that would indicate whether the process was having the desired effect on meeting key stakeholders' expectations.
  • Set-up a management structure for directing the implementation of plant-wide maintenance work management best practices.
  • Made changes to the CMMS based on supporting plant-wide best practices.
  • Set-up a leadership council for focusing people on achieving the outcomes expected by key stakeholders.

Result: $2.5 million improvement in plant contribution to margin. 


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