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 Results - Contractor Reduction - Major Iron Ore House

The bulk materials port had experienced a substantial increase in contractor cost. Controls over contractor usage were weak and the data available to identify what contractors were being used for was limited. Frequent shutdowns were required to maintain the materials handling equipment. Contractors were used to perform a lot of the shutdown work, but management of the activities of the contractors was loose.

Client achieved:

  • Reduced contractor spend by $30m per annum within 4 months of being on site
  • Additional $33m of ideas in the improvement pipeline

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What we did:

  • Implemented a contractor management process, including contractor planning, access approval, gate controls, measurement and a process for reviewing actual versus approved usage
  • Reduced shut duration
  • Changed rosters to enable full-time staff to do work that had been done by contractors
  • Reduced scaffolding use by using prefabricated platforms
  • Consolidated workshops
  • Implemented Results-Actions-Reviews to drive performance in the business


 
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