At a Glance
One of the largest publicly listed electricity companies in Asia. As a vertically integrated company engaged Renoir to improve the management of work onsite, particularly with its contractors, using a systematic and sustainable approach.
Our analysis identified several issues, including a lack of planning, low awareness of productivity, insufficient monitoring and feedback on poor performance, and failure to identify problems quickly, leading to rework and delays in progress.
At the end of the project, the company recorded a 23% increase in value-added wrench time work.
Key results
Over US$700,000
in contractor target cost savings
26%
reduction in overdue work orders
23%
improvement in value-added wrench time work
Significant savings in work contracts
Background
The outlook for the utilities sector in Asia remains positive, with demand expected to increase by 4-5% in both 2024 and 2025. With promising growth opportunities, it is important for utilities to capitalise on opportunities across the entire energy value chain.
Our Client is one of the largest publicly listed electricity companies in Asia. As a vertically integrated company, they are involved in power generation, transmission, distribution, and customer service. The company is committed to sustainable development and has a vision to be the leading responsible energy provider in the Asia Pacific region.
Analysis
The local government in the Client’s home country is committed to achieving carbon neutrality by 2050. Effectively managing the energy transition requires significant resources in cleaner energy solutions while ensuring a stable and affordable electricity supply. As a result, it is important to continuously pursue improvements in safety, productivity, and quality to deliver exceptional cost efficiency and operational performance.
Our Client’s Operational Excellence team in the Generation Business Group engaged Renoir to improve the management of work onsite, particularly with its contractors, using a systematic and sustainable approach.
Our analysis identified several issues, including a lack of planning, low awareness of productivity, insufficient monitoring and feedback on poor performance, and failure to identify problems quickly, leading to rework and delays in progress. All of these issues resulted in higher costs and a lack of motivation.
Following the analysis, we categorised the issues into these workstreams:
- Contractor Ecosystem
- Productivity Uplift
- Project Management
Stakeholders from power stations, generation engineering, and other supporting departments were involved in the analysis as obtaining consensus is vital in change management.
Reduce Operating Costs with Optimized Performance Management
Management system drives efficiency and contractor compliance
Management system drives efficiency and contractor compliance
Optimise Subcontractor Management and Progress Tracking
Ready for a change in your organisation?
Project Approach
The opportunities identified from the analysis were reviewed with the stakeholders, with over 20 brainstorming sessions held to find joint solutions to the issues identified.
For the Contractor Ecosystem workstream, we defined the framework for the company’s engagement with contractors. This included defining the sourcing policy, the types of contracts to be used to ensure high levels of productivity and commitment from the contractors, and the grouping of contractors to synergise work.
For the Productivity Uplift workstream, all levels of supervision collaborated to develop a common solution for the future Management Control System. This included strategies for regaining control of resource planning from contractors, ensuring that supervisors provide daily support to their teams, and identifying the necessary information to improve work in the next cycle.
The Project Management workstream focused on the execution phase of the lifecycle, with the aim of delivering immediate short-term benefits to the business.
“There was lots of improvement expected from us before your arrival and we couldn’t do it. Then, we managed to drive the change! MCS meetings created a platform for me to better manage my team.”
– Director of a Power Station
Implementation
Implementation began with the training of over 200 supervisors in new ways of working, focusing on supervisory behaviour and Short Interval Control (SIC). A Works Management Control System was installed to support all levels of management, from shop floor supervisors to senior directors. Supervisors began daily visits to their teams on the shop floor to assess progress and provide support where needed. They used an electronic SIC form on their smartphones, which had been developed collaboratively with them. This tool functioned as a 3-in-1 solution – it was automatically populated with the next day’s plan before work commenced, acted as a follow-up tool during execution, and generated a report at the end of the day to feed into the productivity dashboard.
Transitioning from theory to practice, after the initial training, Renoir’s consultants coached supervisors on the shop floor to ensure they applied the techniques learned in their daily routines. This approach facilitated quicker adoption of changes and improved compliance. Data from the SIC was regularly reviewed in weekly root cause analysis meetings, leading to actions to improve reported opportunities. The Management Control System allowed for the escalation of issues requiring senior management’s support or guidance. Meanwhile, resource planners meticulously reviewed and scrutinised contractors’ plans prior to approval and implementation.
Weekly planning and performance review meetings were initiated, during which the productivity dashboard was assessed. With the start of a new tender cycle, the company applied the newly established Contractor Ecosystem rules, guidelines, and policies in negotiations with contractors. In Project Management, a pilot programme was launched as a proof of concept. A Project Management Control System was installed, along with standardised project management tools such as a unified planning platform, project checklist, and RACI matrix. A portfolio dashboard was created to improve reporting mechanisms. At the end of the pilot, a phased rollout plan was prepared to extend the solution to other sections and branches.
“The systematic approach guided by Renoir set us on a path of continuous improvement. Working with Renoir on this journey was also a rewarding experience for me.”
– Associate Director, Operational Excellence
Results
Apart from the tangible results, our Client also noticed a change of mindset at all levels of management, as they became more committed to achieving better productivity, quality, and safety.
At the end of the project, wrench time studies were conducted again and compared with those from the analysis phase. A significant improvement was observed, with a 23% increase in value-added time compared to the studies conducted prior to the changes. Our Client is now confident in its ability to sustain these changes.
*We have intentionally omitted client-specific details to maintain strict confidentiality.  
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