Business challenge
At the outset the challenge was to improve operational capabilities in such a wat that sales demands and customer specific requirements for fertilizers could be met with ease.
Process
From the first analysis the scope of the program was going to focus on Variable Cost Optimization and Program and Performance Management to ensure sustainability of the program.
Before the start of the program however a safety incident occurred, impacting maintenance, manufacturing and product supply. As the organization worked on resolution of the incident, the teams involved refocused attention on organizational changes and definition of relevant KPI’s to track improvement.
Variable Cost Optimization
One of these indicators focused on the reduction of energy consumption. This would reduce variable cost as well as deliver on environmental targets already in place. As the upward volatility of the energy markets increased the value of energy reduction increased significantly.
Asset Lifecycle Management
When the 3rd wave of COVID hit the manufacturing site came to a full stop as the combination of the pandemic and soaring energy prices made shut-down a more viable alternative.
Turning desolation into opportunity the teams used this as the perfect launch-pad for design and implementation of new turn-around processes. This would facilitate a fast start-up when market conditions would become favorable again. Start-up was further delayed by development in Ukraine.
Program and Performance Management
During the resolution of the safety incident time was invested in definition and presentation of relevant KPI’s to ensure focus on the right elements crucial for success. Organizational changes that were required were quickly implemented with focus on clear roles and responsibilities, and training programs to improve the overall capabilities of the organization.
Against all odds
The Production was restarted the effects of the safety incident still impacted manufacturing output a lot. And the key stakeholders of the original program started to change due to replacement of 7 of 9 key people including the CEO. To make ends meet the deliverables of the project were adapted to the new reality as most additional activities had been completed. The focus was shifted to clear financial short term as well as definition of long term gains “under normal circumstances”.