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Case Study

Organ­i­sa­tion­al Effectiveness

A new lev­el of oper­a­tional pro­duc­tiv­i­ty — in just 35 weeks

2023/05/26

Back­ground

Our client is an air­port oper­at­ing in South Amer­i­ca, serv­ing 32 mil­lion pas­sen­gers annu­al­ly. Since the inau­gu­ra­tion of a new ter­mi­nal in 2016, the air­port’s han­dling capac­i­ty is expect­ed to rise to 43 mil­lion by 2045.

The air­port has had his­tor­i­cal­ly high lev­els of ser­vice, but the client felt that such high stan­dards could still be achieved at a low­er cost. In order to under­stand the cur­rent lev­els of oper­a­tional per­for­mance (own employ­ees and con­trac­tors) and its impact on cost and per­for­mance, we were brought in to analyse the air­port’s main­te­nance process­es and man­age­ment con­trol sys­tems (MCS).

After a two-week eval­u­a­tion, we iden­ti­fied oppor­tu­ni­ties relat­ing to:

  1. Labour pro­duc­tiv­i­ty
  2. Exis­tence and adher­ence to man­age­ment procedures
  3. Opti­mis­ing cur­rent process­es to increase effi­cien­cy, includ­ing those relat­ing to man­age­ment of contractors
  4. Organ­i­sa­tion­al structure

Our analy­sis also com­pared main­te­nance per­for­mance to world-class stan­dards, which iden­ti­fied those process­es and tools that need­ed to be improved. The client accept­ed our approach to inte­grate the efforts of both the Main­te­nance and Oper­a­tions depart­ments in order to devel­op solu­tions that can address the per­for­mance improve­ment concerns.

Project Approach

The main objec­tives of this trans­for­ma­tion project were to redesign the main­te­nance and MCSs such that man­agers had the nec­es­sary tools to pro­vide 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 organ­i­sa­tion­al struc­ture asso­ci­at­ed with the function.

In the first phase of the project, we imple­ment­ed a work­load and mas­ter sched­ul­ing method to iden­ti­fy the oppor­tu­ni­ties relat­ing to a new organ­i­sa­tion­al struc­ture. We cre­at­ed two Man­age­ment Action Teams (MATs) relat­ing to Man­age­ment Con­trol Sys­tems and Con­trac­tor Man­age­ment, each of which met on a week­ly basis to assess progress and ensure the plan was being achieved.

In addi­tion to the MATs, the steer­ing com­mit­tee met every two weeks where to iden­ti­fy new oppor­tu­ni­ties, look at feed­back giv­en by the steer­ing com­mit­tee mem­bers, and request addi­tion­al sup­port if required.

Project Imple­men­ta­tion

Over 20 weeks, we devel­oped the method­ol­o­gy for review­ing busi­ness process­es. The MCS MAT focused on struc­tur­ing process­es, sys­tems, and behav­iours, defin­ing new rules and new ways of work­ing. The Con­trac­tors Man­age­ment MAT opti­mised each of the biggest con­tracts to gain pro­duc­tiv­i­ty and define a mod­el that can applied across all the depart­ment in the air­port. The project’s key ini­tia­tives were qual­i­fied and quan­ti­fied in terms of mea­sur­able improvement.

All man­age­ment tools and work­flows were reviewed by the area man­agers. 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 in order to address gaps. Some 13 ser­vice lev­el agree­ments (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 MCSs were imple­ment­ed by the team. In order to increase the con­fi­dence of staff, we under­took sev­er­al train­ing ses­sions and act­ed joint­ly in exe­cut­ing the changed process­es to ensure adher­ence to them. The train­ing cours­es them­selves achieved a sat­is­fac­tion index of 96%, as indi­cat­ed by the attendees.

“The work done with Renoir’s sup­port brought great results. At the end of this process, we were 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.”

Main­te­nance Manager

Key Results

3.2:1

return on investment 

17% 

reduc­tion in own labour costs 

21% 

reduc­tion in con­trac­tor labour costs 

48% 

Improve­ment in utilisation 

58% 

reduc­tion in back­log days 

The project’s key ini­tia­tives were qual­i­fied and quan­ti­fied in col­lab­o­ra­tion with the defined MATs. This ensured that the project’s key objec­tives were clear­ly under­stood, enabling a sense of own­er­ship with­in the project team.

Addi­tion­al­ly, we 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 labour. This ensured that all improve­ment actions are fol­lowed up and com­plet­ed in a time­ly manner.

In sum­ma­ry, not only were the improve­ment tar­gets met, but we also helped the client devel­op and imple­ment a method­ol­o­gy that empha­sised a cul­ture of con­tin­u­ous improvement.

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