At a Glance
Over the course of their project with Renoir, the client achieved the following:
- Implementation of a management control system with appropriate KPIs.
- Well-defined roles and responsibilities for all operational functions and support services.
- Management training and rollout of all developed systems, processes and practices.
- Effective transfer of knowledge, toolbox and systems with desired behavioral changes across the operational teams.
Background
The client is a consortium comprised of five construction companies whose objective was the execution of an expansion project with a major subway system.
The Challenge
Renoir was brought in to support the management team in meeting its project schedule whilst containing and reducing operational costs to protect the client’s margins. As a result of a three-week analysis, the scope was defined as a ‘wall-to-wall’ intervention which included the following workstreams – Production, Maintenance, Supply Chain Management, Planning, Engineering, Quality, and Human Resources.
The implementation of the program was carried out over a 38-week period. The objective was to improve the client’s internal processes and increase productivity, and the engagement with Renoir Consulting was centered around improving the following workstreams:
- Increase the productivity of its core resource – Manpower and Equipment
- Improve contract lifecycle management efficiency and effectiveness
- Reduce indirect costs across all areas of the business
- Improve the interface and communication of support areas, decreasing lost time
What We Did
Renoir’s project approach encouraged the active participation and collaboration of all parties in the pursuit of new opportunities – ensuring the development of solutions were followed up with effective implementation.
The project’s key initiatives were qualified and quantified in collaboration with the defined management action teams (MATs), comprised of executives within the client’s management team. This ensured that the project’s key objectives were clearly understood, enabling a sense of ownership within the team and ensuring the sustainability of results long after the project’s completion.
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Designing a Robust Management Control System (MCS)
Each individual element of the management control system was designed and developed in direct collaboration with the client’s staff using diagnostic and brainstorming techniques.
Critiques of the existing systems and processes were converted into opportunities and aligned with the business needs and key drivers.
“The partnership with Renoir has provided the conditions needed for us to think about the construction project in a different and more effective way.”
– Contract Director
As a result, the tools and routines that were installed guaranteed that adequate control was gained over each process at every organizational level. Additionally, to improve the decision-making process, appropriate KPIs and data management tools were developed and installed to provide the correct information, at the correct time, to the correct person.
Key Results
By the end of the project, the following was achieved:
Manpower & equipment productivity
↑ 13%
Supply chain backlog
↓ 33%
Concrete cycle time
↓ 17%
ROI annualized
X 4.1
“Now we have what it takes to efficiently manage our construction project: adherence, reliability, productivity and detail of deviations. It’s the reality of any manager’s ambition!”.
– Operations Manager
Prime your business processes for excellence with a robust management control system.
