Construction & Real Estate
MERU CASE STUDY
Implemented $10M of EBITDA for a global drilling services company
COMPANY OVERVIEW
- $730M global drilling services provider servicing mining and industrial clients in Australia, Africa, North America and South America
- 500+ individual drilling rigs in operation with most contracts being performance based (e.g. revenue per depth drilled per day)
- The company was losing margin as demand was declining within the mining industry and the cost structure was inflexible
- The company needed to increase drilling rig productivity to increase cashflows whilst maintaining the cost base
- The goal was to identify simple productivity opportunities across the globe and then leverage
OUR APPROACH
- Conducted an operational diagnostic over 2 weeks to understand the operational value levers and quick wins
- Assessed the financial impacts on the annual operations budget and likely impact on the upcoming rate case
- Developed a showroom sliver approach to enable leverage across the 6 service centers and 200+ service vehicles
- Established a rapid behavioral change program focused on a single metric to improve driver productivity whilst developing the supervisor competencies
- Established an internal operational excellence team to maintain the tools and systems setup to drive productivity
OUR IMPACT
$10M per annum bottom line benefit from increased drilling rig productivity, higher fleet utilization and reduction in labor overtime costs.
$12.6M of additional opportunities identified from improved transparency into the operations and the sharing of best practices.
23% reduction in recordable injuries from improved operating disciplines (e.g. all shifts now start with a practical safety share and risk assessment).