Accelerated Delivery of Cost Improvement within a High Volume Asphalt Plant

£67k

Aggregate giveaway cost improvement per month

£48k

Bitumen giveaway cost improvement per month

The Situation

The client had recently taken control of a high volume asphalt plant. Several organisational changes months earlier resulted in a lack of appropriate control and resulted in significant operational losses in the first 6 months of the year that required ‘rapid improvement’. The challenges faced included:

  • Over £400k overspend on high PSV aggregate.
  • Over £300k in dumped aggregate.
  • Over £440k loss in bitumen giveaway.
  • 5k tonne gap in RAP addition targets.
  • Over £200k in customer complaints.
  • Team absence running at 7%.
  • Team lateness running at 9%.

The Basics

Over the following 6 months our clients operational improvement team implemented the full suit of ‘Brilliant basics’ particularly focussing on the competence of mixer men, identifying weakness in knowledge and building experience and competence.

Lack of appropriate supervision was a major improvement theme remedied by a keen focus on ‘participative management’ technique supported by coaching the skills required for building high performing teams.

Collaboration between technical and production teams was greatly enhanced by the introduction of measures, targets and review infrastructures.

Creative problem solving and the ability to develop effective countermeasures was encouraged and facilitated across the entire team.

Team roles were mapped for ownership with ‘floating’ roles assigned responsibility and some roles re-assigned where imbalances existed within the team. Visual management for the completion of daily/weekly/monthly responsibilities was reviewed each day as part of a broader daily performance review process.

The Results

Within 6 months the client was able to bring this particular operation back under control and much closer to its desired budget position. Team members were happier at work, understood what was required of them and got regular feedback on team and individual performance. Tangible improvements by the end of month 6 included:

  • A reduction of 6.5% in aggregate giveaway resulting in a £67k per month cost improvement with a Full Year Effect of £330k.
  • Bitumen giveaway reduced by 6% resulting in a cost improvement of £48k per month with a Full year Effect of £240k.
  • Customer complaints reduced by 76% resulting in a £23k cost improvement per month.
  • Overall in year effect of £690k.