The Opportunity

Our client had $5M worth of temporary power equipment which was owned & managed by different areas of the business, stored over several locations & managed out with the warehouse processes.

This resulted in high levels of waste, time searching for equipment, cost of transportation, renting & purchasing similar equipment, duplication of equipment, status & maintenance, cleanliness, of equipment was questionable.

Approach Taken

Representatives from each area of  the business who owned equipment, engineering & warehousing came together & executed a Value Stream Map of the current process & the “To Be” process, following which they held a Kaizen event. Using the 5S methodology during the Kaizen they:

Sort: found all equipment, consolidated & red tagged (identified for disposal) unrepairable, obsolete & not required equipment

Set In Order: consolidated in one central location, catalogued, bar coded & added to inventory system. Ownership was handed over to warehouse tool crib.

Shine: warehouse & engineering, scheduled maintenance & preservation & disposal of red tagged items

Standardise: Control process established for warehouse & end users to request , reserve & return equipment. Put in place control processes for transportation, preservation & maintenance of equipment.

Sustain: created & issued  a detailed “Bi-Weekly Tool Out Report” detailing all equipment status, location, uasage etc. Report issued to end user, craft group supervisor & department manager

Benefits Realised

Transferring management & control of temporary power equipment to the warehouse tool crib resulted in cost avoidance of $7.7 Million over a 5 year period for Heavy Oil & Manufacturing

In addition user confidence in the equipment quality increased which enhanced planning, enabled on time delivery of work scopes & inventory reduction.

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PBI Success Story – Owned Equipment Utilisation