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Construction & Real Estate

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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
Construction Case Study 1

OUR IMPACT

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$10M per annum bottom line benefit from increased drilling rig productivity, higher fleet utilization and reduction in labor overtime costs.

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$12.6M of additional opportunities identified from improved transparency into the operations and the sharing of best practices.

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23% reduction in recordable injuries from improved operating disciplines (e.g. all shifts now start with a practical safety share and risk assessment).