This clients’ regional Readymix business had done well in previous years however, an increase in new competitors led to fierce downward pressure on price which then negatively impacted their forecasted volumes and budgets.
A programme of cost optimisation was initiated underpinned by the Brilliant Basics methodology. Owned by area and plant leaders, targeted improvements in controllable costs, aggregate giveaway, cement variance, returned concrete, general waste and maintenance costs became the key focus areas.
Across 3 sites of concern operational managers introduced enhanced cost based problem solving supported by review infrastructures and action planning.
Team leaders were coached in the benefits of ‘participative’ styles of leadership and team members were very quickly involved in ‘people powered’ improvements including Slump Control, reducing the number of lost loads, improving plant reliability and eliminating excessive idling times for wheeled loaders.
Teams and Leaders alike became heavily involved in the creative problem solving (RCA) process taking ownership for the implementation of countermeasures resulting in a significant number of incremental low cost / no cost solutions.
Within the initial three month implementation period cost optimisations of £103k had already been achieved. The Full Year Effect of implementation was valued at £725k.