Advisian’s combination of management consulting with deep technical expertise resulted in financial improvements for the client including a 30% increase in net income.
A leading North American energy infrastructure company, focused in Canada, with assets in gas, power and utilities, sought to optimize the operation of a 70 year old gas plant. The facility has changed hands five times in six decades resulting in a mix of both older and leading edge equipment. After an initial review of the plant, it was felt that Advisian’s operational improvement capability would deliver a significant profitability boost for the plant and create a model for other plants across the client organization.
The analysis approach reflected the organization’s desire to review each aspect of plant operations and office-to-plant interfaces. The analysis confirmed that a number of structural processes were either inadequate or not present at all. Based on the analysis findings, a robust implementation project was undertaken. The team linked the communications, planning and running of the plant and the central office, which allowed cross-functional alignment and a focus on achieving the daily operations plan. Having access to specialized technical skills within the broader Advisian team gave the project team a unique lens through which they were better able to understand and adjust the plant processes to ensure maximum efficiency. This led to changes which realized greater benefits than would have been possible without the added technical expertise.
The end result was a 60% increase in plant throughput via asset reliability, debottlenecking of processes and an effective management system. The client saw a 100% increase in contribution margin from improved commercial activities linked to plant utilization improvements. The project also resulted in a high level of employee engagement which has led to sustained financial improvements. To date, a 30% improvement in net income has been realized, despite challenging market conditions. The ability to combine management consulting with deep technical capabilities provided the client a real step change in the value they were able to attain.