Operational Contractor Management in four plants

BASF produces the building blocks of the chemical industry and the starting materials for numerous processing industries. With 115.000 employees and HQ in Ludwigshafen, Germany, it generates a turnover 74 billion euro worldwide.

The overall objective was to increase ownership and compliance towards Operational Contractor Management in four plants at the site in Antwerp, Belgium.

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Increase ownership & compliance

The expected deliverables to be achieved were:

  • Analysis of the current workflows for planning, scheduling and execution of contractor regular maintenance.
  • Develop and Implement the system in the Pilot plant (PB/M)
  • A high level plan for implementation of the best workflow in all plants (17) at the Antwerp site.

A structured approach

Conducting the initial analysis by designing and implementing the best workflow, including a performance steering system at two plants, the focus was on the required behavioral change in order to ensure ownership within the teams at plant level.

Designing and implementing Key Performance Indicators (KPI’s) allowed the teams to steer the overall process and future implementations in a sustainable manner.

Best practice approach

Analyse Findings
Best Practise Proposal
Pre Present Involved Maintenance Managers
Updated Best Practice Proposal
Approval Best Practice Involved Maintenance Managers
Approval Best Practice Involved Maintenance Managers Forum
Confirmation Best Practice by Steering Committee.

Improvements

Pay for performance was improved by 10%, and with the largest contractor cost savings of up to 8% were realised!

The most important improvements were of strategic and operational importance considering the following:

  • Creating stability with main contractors
  • Safeguarding know-how
  • Development of price levels
  • Installing a service department to guide the improvement project

Mr. Jurgen Barwich
Sr. Vice President Operations, Infrastructure and Engineering BASF

The project has also brought BASF Antwerp detailed performance reporting on this topic. Combined with an internal department and structure that provides follow up, we are confident that we will be able to continue to improve the Performance ratio in order to gain significant cost savings for our organization.


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