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Case Studies

MCS Boosts Equipment Availability and Productivity for Port

December 4, 2023 | Operational Excellence

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At a Glance
The client was looking to improve its supervision and management systems. A 35-week program was agreed upon between Renoir and the client, which included 4 main deliverables where gaps were identified:

  • 20% improvement in equipment productivity
  • 2-4% increase in equipment availability
  • A reduction of 25% in overtime
  • A reduction of Account Receivables by 6%

Key Results

25%

Increase in operational productivity

5%

Increase in equipment availability

25%

Reduction in overtime

20%

Reduction in inventory stocks

6%

Reduction in accounts receivables

Increased accountability and proactive management style

Background

The client is a corporate entity set up by a government in Southeast Asia, under its privatization policy. It is licensed to operate, manage and maintain port and ferry services as well as undertake present and future development projects. Structured to operate effectively and efficiently on a 24/7 basis, its vision is to be the premier port and logistics chain integrator in the region. 

The Challenge

Continuing problems with service levels led the client to seek the services of Renoir Consulting to assist them in achieving their vision. A 2-week analysis at one of its ports was enough for both the port’s management and Renoir to identify significant improvement opportunities.

It was found that there were gaps in what the port was able to provide versus their customers’ expectations. The supervision and management systems did not reflect the needs of the port.

What We Did

To achieve the agreed upon deliverables, the program was split into 5 work streams, each with dedicated Management Action Teams (MAT) to cover the areas of Operations Productivity, Engineering Maintenance, Marketing and Sales, Accounts Receivable and Organisation Alignment.

Six of the client’s employees at the port were chosen to be part of a dedicated task force to work alongside the Renoir consultants throughout the program, to ensure practicality, greater insights, and sustainability, while complementing the external experience of the Renoir.

“Overall, Renoir was able to implement the real change the organization needed and delivered measurable results within the engagement period. I would recommend their services to other companies.”

General Manager

In addition to the involvement of the task force, all employees across all functions had the opportunity to contribute during Renoir’s Focus Process® by mapping and evaluating the Management Control Systems and all its business processes.   

This involvement by employees at every level, led to the buy-in and the success of the program. Results and findings were shared with many, leading to ownership of the project moving from the consultants and task force to all port employees. A significant number of employees were given one-on-one training and coaching for the changes that were to be made to ensure continuity of results. 

Each MAT area implemented a comprehensive Management Control System (MCS) to allow for the monitoring and review of the Key Performance Indicators (KPIs). A Balanced Business Scorecard was designed from the KPIs identified in each area.  

In addition, the Organisation Alignment MAT designed a revised organizational structure to align the business with customer needs and updated all Job Descriptions. The Operations MAT implemented container yard and resource management systems and Engineering implemented 5S into their workshops and an inventory management model into their stores.  

The Results 

By the end of the program, equipment productivity had increased by over 25%, availability by over 5%, overtime was reduced by 25%, Inventory reduced by 20% and Accounts Receivable by 6%. 

“I was impressed that the project managed to achieve the results it did in such a small time frame”.

General Manager, Finance

On top of the tangible benefits, the port experienced a significant change in its corporate culture, one of responsibility, accountability and transparency, as employees across all departments and functions began to embrace a performance- and target-focused work environment. 

Manage performance effectively with an aligned organisational structure.

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