A 2200 MW capacity utility company located in the Midwest with 700+ employees distributed among 3 different geographic locations. With the trend of fossil fuel power plants shutting down and increased cost of power, the client was facing shut down if they did not reduce the expenditure and production cost per MW. Jobs were at risk and outdated practices of operation and deteriorating health of equipment onsite were the challenges. Ageing workforce with limited receptiveness to change hindered progress in the engagement. Transition from a regulated power market to the competitive market was not smooth and the cost of production was way above the market rates.
To improve the health of the organization, immediate cost savings programs were required which would mature into a continuous improvement program. The organization also needed a lean six sigma implementation program to move the performance to within the top 10% of similar organizations.
The company conducted idea generation sessions facilitated by Pyramid Consulting, to identify opportunities for process improvement and immediate cost savings. With this knowledge, the company collaborated with Pyramid to implement the identified cost savings ideas and capture the annualized savings. Process Improvement ideas were tied to in the introduction of Lean Six Sigma implementation and were completed using various lean tools such as Kaizens, Gemba walks, A3’s, Process maps and Visual management boards.
The organization achieved significant annual savings, reduction in operating costs, improved processes and reduced man-hours through the continuous improvement program.