At a Glance
The project was developed and implemented in a 25-week period to deliver improvements in their management control systems, namely:
- Increased productivity of manpower and equipment.
- Leasing expense reduction and vehicle maintenance.
- Reduction of the costs associated with contractors.
Background
The client is one of South America’s largest private sanitation groups that develops solutions to preserve natural resources and improve people’s quality of life through its operations. Since 2011, it has established segments in water and sewage, utilities and waste, with a provision of water supply and sanitation services in 47 municipalities.
The Challenge
After successful implementation in one of the client’s previous units, Renoir was hired to assist their management team in identifying and implementing process improvements, making it possible to increase the productivity of field teams, increase service levels and reduce operating costs to preserve its margin. As a result of field analysis, the scope was focused on three areas – Water and Sewers Network Maintenance, Billing and Contractors Management.
What We Did
Our program and project schedule was clearly oriented around 3 important goals:
Increase productivity of manpower and equipment
Network management was improved by reorganizing the client’s equipment and maintenance management processes, aiming to fulfill requirements more efficiently, increasing productivity and maximizing operational reliability. The result was that their volume losses were significantly reduced.
Lease expense reduction and vehicle maintenance
Through close collaboration between Renoir and the client’s teams, an updated productivity management system was developed to support commercial field agents, improving the effectiveness of collection actions and identifying irregularities more quickly.
Reduce the costs associated with contractors
A management model was developed, focusing on improving the productivity of the operations teams, particularly in reviewing compliance of the required service levels and concessions made. Additionally, the team redesigned internal and administrative processes, resizing and balancing activities and work schedules to reduce services demand.
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Results
The tools and routines that were created enabled additional control over the processes, which were supported with specific and clearly defined KPIs, enabling management to make swift decisions based on data.
With the systems and indicators installed, focus was turned toward effective running of key meetings to establish appropriate forums to discuss results, define root causes and corrective actions on a daily basis. Over the course of the project, the following system deliverables were met:
- Implementation of a management control system with appropriate key performance indicators.
- Transfer of knowledge, toolbox and systems with desired behavioral changes across the operational teams.
- Improved management capability and confidence in meeting established objectives and project milestones.
- Well-defined roles and responsibilities for all the operational functions and support services.
- Management training and rollout of all developed systems, processes and practices.
- Transfer of all systems and processes related to activity planning, control and reporting, within the integrated management control system.
Sustaining Long-Term Change
The objectives of the project were qualified and quantified in collaboration and agreement between parties, in accordance with Renoir’s methodology. This has ensured that from the beginning of the project, the objectives were clearly defined, providing a greater sense of ownership of the identified benefits. It was developed with the participation of staff from the finance department, benchmarking a model that allowed reliability and security in proving such benefits.
Some of the benefits obtained out of the partnership between the client and Renoir were as follows:
|
Impact |
Deliverables |
Validated Benefits |
|
Manpower |
Weekly automated report generation (productivity and overtime) |
Cost savings – 15% |
|
Field team productivity |
Utilization, efficiency, and productivity of team management |
15% Productivity improvement |
|
Costs associated vehicle and equipment |
Dimensioning of vehicles equipment and displacement control |
15% reduction of fuel costs and 6% reduction in the cost of vehicle fleet |
|
Outsourced security services, cleaning and temporary labor contract |
Renegotiation of contracts, payment audits, and new sheet for control and verification of measurements |
6% reduction in the value of contracts |
|
Electromechanical – compliance with preventive maintenance |
Utilization, efficiency, and productivity of team management |
12% increase in productivity of teams, reaching 100% in preventative water system and 60% in the sewage system |
|
Commercial and physical losses |
Planning, dimensioning and balancing of commercial agents and vehicles |
Backlog reduction until the end of April |
“The Renoir Methodology ensured that, from the beginning of the project, the objectives were clearly defined which in turn provided greater sense of ownership of the identified benefits.”
Site Director
Key Results
4:1
Return on Investment
15%
increase in productivity of field teams
15%
reduction in manpower costs
15%
reduction in fuel costs
6%
reduction in fleet costs
Reduce costs through enhanced productivity and processes.
