Key Results
3.2:1
ROI of Full Maintenance organizational redesign
17%
Own employee cost reduction
21%
Contractor labor cost reduction
Management Control System for maintenance performance and labor productivity (employees and contractors) installed
INTRODUCTION
The Client is one of the largest global infrastructure concession companies with 40 years’ experience. Infrastructure concession companies are typically involved in Design & Construction, Operation & Maintenance, Financing, and Commercial Management of large infrastructure, in this case a major international airport.
THE CHALLENGE
The company has historically high levels of service, but there was the feeling that such high standards could still be achieved at a lower cost. To understand the current levels of operational performance of employees and contractors, and its impact on cost and performance, Renoir was invited to analyse maintenance processes and management control systems.
ANALYSIS
Renoir identified significant opportunities for improvement in several key areas. Labor productivity, for instance, was identified as a potential area of growth, indicating that we could harness the efficiency of our workforce more effectively.
Additionally, our analysis underscored the importance of consistent adherence to management procedures and established guidelines. Reinforcement of these protocols could potentially improve operational performance.
There were also prospects for refining existing processes to enhance efficiency. This includes optimising the management of contractors. By fine-tuning these processes, we could potentially improve time management, reduce costs, and increase overall efficiency.
The organisational structure was another focus during the analysis. Changes to the current structure could lead to increased efficiency and better allocation of resources.
Furthermore, the analysis incorporated a comparative study of our maintenance performance against world-class standards to identify areas where our processes and tools needed to be improved.
Given these insights, the Client accepted Renoir’s proposal to systematically integrate the efforts of our Maintenance and Operations departments. This strategy could provide comprehensive solutions to address the performance improvement concerns. By focusing on collaboration and integration, we were confident that we could foster significant improvements in our operational performance and productivity.
“The work done with Renoir’s support is bringing great results. We are convinced that, at the end of this process, we will be at a new management level, with greater team productivity, better performance levels and indicators and – above all – the guarantee of the availability of the airport’s assets.”
Carlos Freitas, Maintenance Manager
PROJECT APPROACH
The main objectives of the ensuing project were to redesign the maintenance and contractor management control systems such that managers had the necessary tools that provided performance information in a timely manner for effective decision-making.
The scope covered maintenance processes (such as planning, scheduling, backlog management, performance reporting, etc.) as well as organizational structure associated with the function.
In the first phase of the project, Renoir implemented a workload and master scheduling method to identify the opportunities relating to a new organizational structure. Consequently, two Management Action Teams (MATs) were created relating to Management Control Systems and Contractor Management, each of which met on a weekly basis to assess progress and agree any actions to ensure the plan was achieved.
In addition to the MATs, the Steering Committee met every two weeks where identified opportunities were presented, guidance given by the Steering Committee members and additional support requested if required.
“ The board agreed with the diagnosis assertations. The project team met all our expectations that went beyond the financial result. ”
Regio Fernandes, CFO
IMPLEMENTATION
The changes were implemented over a period of 20 calendar weeks, beginning with the development of the methodology for reviewing business processes. The Management Control Systems MAT focused on structuring processes, systems and behaviors, defining new rules and new ways of working.
The Contractors Management MAT objectives were to optimise each of the biggest contracts to gain productivity and to define a model for the rest of them. The project’s key initiatives were qualified and quantified in terms of measurable improvement in collaboration with MAT members.
All management tools and workflows were reviewed by the area managers. The starting point for the reviews was the As-Is analysis of the processes, whereby those involved in individual process steps – both customer and supplier – critiqued the process and raised opportunities for improvement.
Tactically, we were able to lay the foundation for sustainability, as those involved in the critiques promoted their own improvement ideas and were then held responsible for their implementation.
Some 200 maintenance plans were reviewed and improved, and an additional 54 maintenance plans were created to address gaps. Some 13 SLAs were also generated to ensure there was clarity in what was expected from the maintenance teams; improvements in structure and redefinition of roles and responsibilities provided additional clarification. Once they were agreed, changes to processes and management control systems were implemented by the team. To increase the confidence of staff, we undertook several training sessions and acted jointly in executing the changed processes to ensure adherence to them with the tremendous support of the Human Resources department and excellent attendance of the company’s employees. The training courses themselves achieved a satisfaction index of 96%, as indicated by the attendees
The project’s key initiatives were qualified and quantified in collaboration with the defined management action teams (MATs). This ensured that the project’s key objectives were clearly understood, enabling a sense of ownership within the project team. As a result of the effort, utilization improved by 48% and backlog days reduced by 58%.
In addition, the joint Client – Renoir team delivered a methodology to review maintenance plans and improve their effectiveness, a master scheduling methodology and tools to allow efficient allocation of resources, tools and methods to analyse the productivity of own and outsourced labor, assuring that all improvement actions are followed up and completed in a timely manner. In summary, not only were the improvement targets met, but the organisation now has an agreed methodology to underpin a culture of continuous improvement.
KEY RESULTS
3.2:1
ROI of Full Maintenance organizational redesign
17%
Own employee cost reduction
21%
Contractor labor cost reduction
Management Control System for maintenance performance and labor productivity (employees and contractors) installed
CONCLUSION
Through its collaborative efforts with Renoir, the Client has paved a path towards a future of increased operational efficiency and financial robustness. The improvements implemented are expected to sustainably grow productivity and foster a culture of continuous advancement. These efforts have put the Client in a stronger position to maintain their high service standards, while operating with heightened fiscal prudence in the challenging infrastructure concession sector.
