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Energy, Power & Renewables

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MERU CASE STUDY

Implemented 20% increase in labor productivity gains for a regulated gas distributor

COMPANY OVERVIEW

  • $250M gas utility providing residential, commercial and retail natural gas for 800,000+ customers in a major U.S. metropolitan city
  • Operating costs increasing as the targeted productivity gains agreed within the previous rate case not being achieved
  • The company required external assistance to identify productivity opportunities quickly and support management implement prioritized initiatives
  • The goal was to identify operational opportunities that could be implemented before the upcoming rate case without spending capital

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
nergy, Pwr - Case Study #1 and #3

OUR IMPACT

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20% increase in jobs completed per day in 8 weeks by reducing operational downtime for the 200+ service vehicles while teaching the supervisors how to manage crews effectively using operating metrics.

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$1.5M per annum reduction in overtime as the increase in job productivity enabled the dispatch team to manage drivers with improved disciplines.

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$2.8M per annum of additional labor savings expected to hit the bottom line over the next 3 years as natural attrition will not require backfilling.