Utilities

Our client is a leading regional Utility company. In order to maintain their equipment and assets at targeted levels of reliability and availability, they work with a large number of contractors to execute the repair and maintenance work in their plants. This work is conducted in an environment where the number one priority is safety.

The management was concerned about their existing Contractor Management System (CMS). Whilst our client developed the system to manage and evaluate the performance of their contractors a number of years ago, the business environment and the company・s contracting strategy had been evolving rapidly. The current selection criteria and a point scoring system used to determine contractor performance levels were viewed as arbitrary and inflexible. As a result their current CMS was not reflecting the truth performance.

In addition to the CMS, the client also wished to review the current comparative state of the contractors・ productivity levels and the effectiveness of the daily work processes between them and the contractors.

Solution

LMM was engaged to work in the following areas:

  • To analyses the current state and identify areas for improvement
  • To design a Contractor Performance Assessment and Development System (CPADS)
  • To carry out a Contractor Productivity Benchmarking Study

For the contractor management system, we interviewed both contractors and the client・s people and as a result confirmed with them the key parameters required for their future contracting environment including:

  • Increased volume of work to be contracted out
  • Rationalization of contractors and increase in contract scope
  • Longer term contracts
  • Introduction of a partnership development scheme to enhance contractor capabilities

For the contractor productivity benchmarking exercise, we conducted various types of studies including Floor Observation; Management Interview and Contractor Survey to find out:

  • Key activities within a day that were carried out by the contractors workers,
  • Time associated with these key activities,
  • Value-Added / Non Valued-Added elements in contractors daily activities and work processes
  • Productivity level of its contractors
  • Benchmark the productivity levels and work practices against companies in identical or similar industries
  • Identify the contractor・s supervisory approach and behavior and the correlation with their workforce performance
  • Productivity level of its contractors

Result

We designed and produced a new Contractor Performance Assessment and Development System with four major areas of focus:

  1. Work Planning
  2. Selection and Expectation Setting
  3. A multi-level Assessment and Feedback Program
  4. Resources Development plan

The benchmarking study results highlighted that there were clear productivity gains to be achieved particularly in the areas of; work to time relationship, contractor facilities upgrade, work flow simplification and document rationalization.