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Increasing productivity and optimization of operational costs

Situation

  • One of the largest Russian companies in the petro-chemicals sector was looking for opportunities to increase production and reduce its operational costs

Goal

  • To conduct analysis of productivity at a selected plant
  • To assess the potential to increase efficiency and identify measures to bring this about

Our approach

  • An express-diagnosis carried out on productivity at the pilot plant (a car tyre extrusion and assembly area) allowed for the following to be assessed:
    • The efficiency by which equipment was being used
    • The efficiency by which human resources were being used
    • The efficiency in quality control systems
    • The efficiency of repair management systems
    • The efficiency of introduced Lean Production measures
  • The value and quantified potential of increased labour productivity was assessed, along with the benefits from reducing operational costs; additionally, initiatives were developed to achieve additionally identified potential

Results

  • ·Opportunities to increase production volumes by 10% were identified, along with opportunities to reduce payroll costs, expenses on raw materials and repairs by 10-15%
  • A corresponding implementation plan was developed and presented

 

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