CASE STUDY

Company Projects 24–31M USD per Year in Financial Benefit across Two Refineries From PEP™ Solution

Solomon uses Performance Excellence Process™ (PEP™), identifies 4.4M USD/year in implemented “quick hit” savings.

CHALLENGE

A company wanted to close a 103M USD performance gap across two of its refineries.

SOLUTION

Solomon performed its Performance Excellence Process™ (PEP™), identifying quick hits and assessing workforce optimization.

RESULTS

Solomon identified 4.4M USD/year in implemented quick hits benefits and 24 31M USD in overall potential benefits per year.

MILLIONS ON THE LINE

A client operating multiple refineries engaged Solomon to assess two of them as part of an integrated operations excellence program. According to Solomon’s 2016 Worldwide Fuels Refinery Performance Analysis (Fuels Study), performance gaps for these refineries totaled 103M USD per year due to inefficiencies across multiple functional areas. To address the lack of efficiency and identify opportunities to close this gap, Solomon implemented its Performance Excellence Process™ and workforce optimization processes in tandem.

Table 1. Competitive Performance Areas


ESTABLISHING A PROGRAM

Solomon began identifying the underlying causes of the performance gaps by deploying a multidisciplinary team of subject matter experts who evaluated 10 functional areas and 500 work practices at each site. The client’s personnel then vetted and prioritized each of Solomon’s recommendations, which led to a list amounting to 24–31M USD per year in priority initiatives. To support a long-term culture of continuous improvement, Solomon also led a workforce optimization program aimed at sustainable improvement across refinery operations.

This program focused on specific operations workflows, performance improvement, 24-hour leadership at the operating unit level, and human capital investment. Solomon supported the client in achieving its goals over a year-and-a-half timeframe with monthly visits to each site and on-call subject matter experts at its disposal, as well as change management consultation.

Implementation of quick-hit improvements—those that could be addressed the fastest—yielded 4.4M USD/year in implemented benefits within 6 months of being identified.

IMPROVING OPERATIONS, EMPOWERING PERSONNEL

The client has realized numerous benefits by following Solomon’s recommendations, including:

  • Enhanced operating organization performance at both refineries
  • A greater level of consistency in daily refinery operations
  • Additional clarity as to individual roles, responsibilities, activities, and expectations
  • A greater level of responsibility and decision-making authority for daily operations
  • Increased teamwork and collaboration across the business

Overall, the impact of Solomon’s program is expected to yield financial benefits totaling 24–31M USD per year that will be sustainable by the refinery teams. The company expects to improve its performance from below average for both refineries to second quartile performance within 4 years.

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SOLUTIONS

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