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Increasing Production Efficiency via use of Lean Production

Situation

  • International energy company E.ON is in the process of implementing a global long-term program to increase the operational efficiency of its assets. As part of this program, the firm’s large energy-generating Russian subdivision, together with Strategy Partners Group, implemented a pilot project to increase production efficiency via use of Lean Production techniques at the Shatura state power station. The results of the pilot project will be replicated at all power stations in Russia

Goal

  • Increase production efficiency to release greater potential and more effectively and rationally use resources, achieving the maximum output for the minimum costs, without lowering the level of reliability and by staying in-line with state regulations and equipment limits

Our approach

  • Developed and introduced initiatives with measurable effects on the desired outcomes: exploitation, technical servicing and repair of equipment, securing transportation and other services
  • Created, taught and developed an internal team at the client to internally replicate the pilot project at other power stations in the client’s network
  • Created a general culture of productivity

Results

  • Increased profit at the filial by more than 5%
  • Created and taught a team of engineers that won first place in E.ON’s internal international efficiency competition
  • Developed 23 initiatives which included introduction of the new business processes, lean production, motivation and   employee involvement programs, guaranteeing:
    • Gained additional profit from optimizing power mode settings;
    • Reduced fuel consumption via continual monitoring and analysis of the key operational technical and economic indicators;
    • Saved up to 34% on maintenance labour expenses by improving operational planning and the management of maintenance;
    • Gaining profit from commercial use of redundant fixed assets and stock;
    • Reduced expenses on contractors and subcontracting to bring in additional personnel;
    • Released continuous improvement potential via rationalization and managing ideas better in all process areas.

 

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