Working closely with the client, Marick Associates team members designed and implemented the business transformation programme for a large primary aluminium smelter in the GCC.
Client Background
Primary aluminium smelter in GCC with 635kt annual throughput. Production processes included Carbon/Rodding, Electrolysis and Casthouse components with a combined-cycle Power Plant (1350MW capacity). Our Consultant was employed full time to deliver an improvement programme.
Challenge
- Unstable operating environment
- Lack of maturity in processes and systems
- Pressure from the Board of Directors to reduce cash cost by 150USD/ton in order to elevate this smelter to be amongst top 10 most cost efficient in the world on the CRU cost curve
Approach
- In depth analysis with extensive engagement of all departments to define cash cost reduction opportunities. Formulated business cases, defined 5 year transformation programme roadmap and detailed implementation plans
- Established and managed a PMO team of 18 people
- Used comprehensive, customised lean manufacturing and operational excellence tools and methodologies to achieve results and drive behaviour change to achieve a culture of continuous improvement
Results
- The smelter was rated #3 on global CRU cash cost curve compare to baseline position #12 2 years after the transformation programme was kicked off
- Total savings equated to >$100m in a range of areas including, fixed, personnel and maintenance costs
- Behaviour change helped improve HSE levels to achieve lowest TRIR levels on a global benchmark
- Continuous improvement culture helped achieve benchmark performance in On Time Delivery at >95% and 50% reduction in Claims & Complaints
- The programme was celebrated in the press and presented to the Minister of Energy as a best practise for structuring similar engagements in various subsidiaries and JVs in the country
Marick Associates 