Business Case: Global Group of Energy and Petrochemical Companies Organization Creates $54M in Value with Optimized Services

Top-3 World’s (operate in 70+ countries) Largest Private-Sector Energy and Petrochemical organization specializing in exploring, producing, refining (manufacturing), and marketing energy solutions globally

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$54M

42%

efficiency opportunities

reduction in reporting cycle time

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Challenge

This organization faced significant challenges with producing an energy product at low-enough production costs. Although the operating asset for a group company was an industry leader, they needed support in optimizing operations, to reduce costs. PSS Ltd. senior leaders were brought in to identify cost-savings opportunities and implement “near-term with the biggest impact” solutions.

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Discovery	Working closely with the client, we aligned on the approach, strategy, fit-for-purpose methodology and the area of greatest opportunity was identified. Major improvement opportunities were identified across the asset related to internal production, operations and logistics, head office, regulatory body, internal and external suppliers, and local community partnerships. Our team lead several initiatives as a program, leveraging existing competencies and capabilities to increase efficiencies. Highlights include:
	Kaizen Workshops of 15 to 30 people each, plus Gemba walks, for value stream and cost (or waste) analysis
	Lean Six Sigma tools utilized in Kaizen workshops (and separately) identified 54 solutions, 27 lower-effort and higher-return solutions were developed achieving 21 to 47% in efficiency improvements.
	Future state processes were developed, task assignments owned, and leading and lagging indicators developed to maintain process health.
	Suppliers, regulator and community participants were involved to solidify relationships and improvements.

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Value created	As a result of this engagement, our client experienced significant benefits:
	$54M efficiency opportunities.
	A roadmapped implementation program which enabled the client’s existing team to manage updates efficiently while successfully managing ongoing work.
	A portfolio of assigned and easy indicators to sustain and report on the efficiencies.
	42% reduction in reporting cycle time.

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