Energy, Power & Renewables
MERU CASE STUDY
Identified $2.4M in sustainable cost reductions for an industrial service provider
- $120M industrial cleaning provider servicing petrochemical processing and storage facilities
- The sponsor was preparing to divest the business and was looking to reduce operating costs as service contract price hikes were being outpaced by increasing labor costs
- The sponsor was looking to identify costs that could be eliminated within 3 months without impacting existing service levels, or compromising safety
- Defined the key value drivers for the business and confirmed the business processes required by each service contract
- Mapped the key business processes with resource requirements at each step
- Identified opportunities to eliminate, reduce or run tasks in parallel
- Assessed performance metrics and management system of each contract
- Assess contract management software and efficacy in its use
- Conducted in-the-field observations to identify routine tasks that could be undertaken with less resources
$2.4M in sustainable cost reductions identified and owned by management.
Trained management and key stakeholders in the use of a structured ideas pipeline system.
Identified counter-physicals for each idea to prevent cost leakage (e.g. tracking contractor spend to ensure labor reductions were not simply being replaced with contractors).