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Fadiven
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Project Management & Consulting
Project Management
Project Initiation Engineering Project Management Company Formation
• Project Selection
• Government Relations
• Feasibility Studies and Due Diligence
• Promotions and Project Appraisal
• Pre-Implementation and Settlement
• Basic and detailed engineering designs
• Tendering process
• Supplier and contractor evaluation and
Selection
• Construction Supervision
• Commissioning & testing
• Time Management
• Cost Management
• Risk Management
• Resource Management
• Procurement Management
• Organization Structure
• Company manning
• Financial Marketing Material control and
General Company Systems.
• Operational Models and Manuals
Upgrade and Expansion Management Standards Compliance Management Project Mngmt. Softwares & Tools Industries
• Plant enlargements
• Update, upgrade and revamping of
machinery
• CAPEX/OPEX projects Management
• Manufacturing of new products
• Management of re engineering processes
• Setting up and start up of new
manufacturing facilities
• Greenfield, Brownfield and Grassroots
Projects
• OHSAS 18000
• NFPA,API,EXXON
• COVENIN & CBM
• PDVSA
• ISO 9001 and 14001,ISO/TS16949
• ANSI,AENOR,BSI
• CSA/AM - CSA Gas Standards
• ASME, ASTM,IEEE-SA
• ASCE, JSCE
• MS Project , Openproj, Gantter
• Primavera, Teambox, FreedCamp
• Leap.
• Photoshop, PhotoScape, Webshots
• SAP2000, RSTAB 8, RFEM 5
• AutoCAD 2012: 2D & 3D.
• PD467
• O21
• SCADA
• PLC
• Gas/oil and Energy
• Utilities & chemicals
• Steel mill, mining, Iron and Steel
• Retail, industrial goods, textile
• Construction, petrochemical,automotive
• Pulp & paper, consumer product
• Manufacturing, foods and beverages
• High tech, telecommunications, fmcg
• Supply chain, distribution and
Transportation
• Pharmaceuticals, aerospace and defense
Management Consulting
Management Strategies Personnel and Organization Marketing Production
• Establishing management visions
• Formulating management plans and
profit plans
• Promoting restructuring strategies
• Strategies for new businesses/ M&As
• Developing new products and services
• Developing personnel Systems
• Adopting goal management systems
• Reorganization
• Making organizations more efficient and
Active
• Improving efficiency in indirect sections
• Adopting relationship marketing
• Realigning and reinforcing sales systems
• Formulating and implementing store
opening plans
• Making sales representatives more
active
• Surveying customer satisfaction and
markets
• Reforming factory management systems
• Promoting total cost reduction
• Improving production line productivity
• MRP/JIT/Lean Six Sigma
• Reforming distribution and logistics
systems
Finance IT ISO-related issues Management Quality
• Reforming profits structures
• Improving cash management
• Improving cost accounting systems
• Developing monthly and consolidated
group accounting systems
• Support for formulating plans to utilize
information technologies
• Support for writing RFPs
• Support for writing requirements
specifications
• Support for writing RFPs based on
requirements specifications
• Support for evaluating operations
• Obtaining ISO 9001 and 14001
certification
• Training (would-be) internal auditors
• Compliance audits
• Support for solidifying the basis of
business processes through “5S
activities,¨ work process analyses.
• Support for internal assessments
• Support for assessment cycles
• Support for setting up projects to
improve management quality
• Reforming management from the
viewpoint of management quality
Environment Additional Capabilities Mngmt. Consulting Softwares & Tools Industries
• Formulating environmental strategies
• Compiling environmental report
• Adopting environmental accounting
• Developing systems for environmental
education
• Various researches and studies
• Corporate finance
• Startups, turnarounds, setting up
• New business development
• Product analysis & development
• New investment developments
• Risk and strategy planning direction
• Metric-based management
• Saint, SAP R/3, Baan, PeopleSoft
• JD Edwards, Oracle, Profit Plus
• Adapta Pro.
• CRM, QMS, JIT, SMED, TPM,MRP
• PLM, SCM, SDLC,CBM
• Microsoft Office Professional 2003-2011:
Excel, Power Point, Word.
• Six Sigma tenets, Lean Manufacturing
strategies
• KPIs and metric-based management
• SWOT Analysis, TCO, MCRS, SaaS
• Gas/oil and Energy
• Utilities & chemicals
• Steel mill, mining, Iron and Steel
• Retail, industrial goods, textile
• Construction, petrochemical,automotive
• Pulp & paper, consumer product
• Manufacturing, foods and beverages
• High tech, telecommunications, fmcg
• Supply chain, distribution and
Transportation
• Pharmaceuticals, aerospace and defense
Examples of Recent and Current Projects
Client Case Studies
Management Consulting
Corporate Turnaround System Design/Implementation Strategic Planning
• Situation: After private equity firm acquired $570MM
food processing manufacturer, they hired Fadiven to
analyze the business, identify cost savings opportunities,
and lead the company through implementation to
realization of savings.
• Hindrance: Nine consecutive years of company losses at
120+ year old unionized company with heavily ingrained
culture of entitlement, a lack of customer / market
awareness, and a disdain for change.
• Actions: Led team of 12 consultants on-site for 15
months, focused on cost savings / process improvement
efforts in energy consumption, maintenance
effectiveness, manufacturing output, labor efficiency, and
management reporting. Built an energy consumption
model based on 25 variables. Analyzed maintenance
work orders, cleansed the data, updated man-hour (time)
estimates, established priorities, and realigned manning
to the work.
Analyzed production records to determine the
circumstances when output was at its highest and
performed root cause analysis to determine issues
leading to lower output. Developed over 250 key
performance indicators to measure the effectiveness of
all departments and then target rates were established to
provide consistent direction to the 750 employees across
the company.
• Results: Returned Company to profitability in first full
year on-site, exceeding $15 MM cost savings target by
10%. Delivered client savings in excess of a 4-to-1 return
on investment.
• Situation: Private equity firm acquired $350MM global
printing and packaging division from international
conglomerate. As part of the divestiture agreements, the
newly created company had 12 months to migrate from
corporate hardware and software systems. Upon
finalizing the acquisition, the first 6 months were spent
analyzing sales and operations, building a plan to
restructure the business, implementing all requisite HR
processes, and hiring a new senior leadership team. Once
the direction of the business was established, I led the
effort to analyze enterprise resource planning (ERP)
requirements.
• Hindrance: Much of the business was unprofitable at the
time of acquisition, assets needed to be sold off and
plants closed, personnel turnover was high due to the
perceived risk of closure, and sales were in decline
• Actions: Fadiven led the development of ERP system
requirements, system selection process, final
negotiations, and the conversion from SAP to EFI Radius.
After two months of due diligence, we had only 4 months
left before we had to "go live" and comply with all legal
obligations associated with the divestiture. Ran the
project from beginning to end, partnered with the
technical lead on an outsourced hardware solution, and
directed all functional leads on system configuration,
data conversion, and personnel training
• Results: New ERP system went live on time and on budget
within these 4 months (a typical conversion can last up to
18 months).
• Situation: automotive manufacturing company had new
leadership team, post acquisition, with nine consecutive
years of losses.
• Hindrance: Seven different bargaining units (unions)
within the hourly labor force. Significant financial losses
limited the availability of capital for investment in
technology, so work redesign and restructuring were the
only options to streamline processes. Lack of detailed job
descriptions, no job grading system in place.
• Actions: Led the 7-person client leadership team through
multiple off-site meetings to complete SWOT
analyses. Facilitated the discussions and introduced
industry benchmark data to spark the brainstorming and
help define current state. Conducted gap analyses based
on newly defined strategies and profitability targets,
identified an opportunity to reduce headcount,
developed plan to reorganize supervisory positions for an
improved span of control, and negotiated with Unions
• Results: Corporate restructuring and union negotiations
removed more than $4MM of labor costs
Strategic Sourcing Logistics Management Continuous Improvement
• Situation: Acting VP of Supply Chain for $270MM pulp
and paper manufacturer leading the Strategic Sourcing
function. The department had no clear understanding of
contract management, no active spend analysis program
existed.
• Hindrance: Company did not centrally manage their
spend, with multiple functions throughout the operation
having spend authority. Singular focus of small
procurement team was to create purchase orders.
Organization was untrained on the benefits and
requirements of strategic sourcing.
Data was inconsistently input into multiple databases and
no analyses were in place.
• Actions: Conducted spend analysis on $250MM of
expenses. Created a repeatable set of processes, tools,
and data management guidelines for the analysis to be
sustainable and trained the company's top 40 associates
on strategic sourcing. Identified 12 contracts that had
lapsed and an exceptional lack of sourcing leverage (too
many suppliers providing similar commodity
chemicals). Partnered with technical / R&D team to
determine optimal combination of chemicals and
suppliers. Led team to negotiate multi-year purchase
agreements
• Results: New purchase agreements saved more than
$10MM annually and created mutually beneficial
partnerships with world-class suppliers, including the
provision to provide on-going technical analysis and
support of new product development, cost efficient
operations, and an environmentally sustainable footprint
• Situation: Sold follow-on consulting business to consumer
products manufacturer to develop a structured
transportation bidding process where none had existed
previously (annual transportation spend of $20MM).
National carriers were specifically excluded and limited
ability to leverage spend (using 40+ carriers)
• Hindrance: Very manual process to tender more than 100
loads each day under a single set of rates per lane that
did not take different carrier density or capacity into
account. No tools / technology available and very poor
quality of data to make decisions. A small insourced fleet
was used in addition to the 100 contract loads per day,
with manual driver logs and little management oversight.
• Actions: Designed and implemented client's first ever
transportation analysis and bid process. Manually
cleansed data in order to make informed decisions on
requirements. Pre-qualified additional carriers to include
in the process. Determined the client's small insourced
fleet was inadequate to provide required service and
exposed the company to unnecessary risk. Designed a
regional, dedicated fleet and led all negotiations with
third party carriers. Signed multi-year service deals, with
a comprehensive scorecard to measure performance.
• Results: Secured a 10% reduction in total freight costs,
equating to $2MM annually, and moved payment terms
from net 7 days to net 30 days, improving cash flow .
With the regional dedicated fleet in place, this
secured capacity in a tightening market and enabled on
time deliveries to improve from 96% to more than 99%.
• Situation: In addition to managing a $125MM business
line in the Consumer Product Division for a $2.5B French
professional services firm, tasked by the CEO to assume
responsibility for a global productivity initiative required
to deliver $2MM in annual cost savings.
• Hindrance: Global productivity initiative was started 2
years prior with very little results. Management of the
project had changed hands two prior times and there was
no project plan or roadmap to work from ($2MM cost
saving goal was provided as a "top down" target).
Cultural challenges across the 24 countries involved. The
company had grown through acquisition with no
enforced standardization of local processes. Organization
had no training in Six Sigma or other continuous
improvement techniques.
• Actions: Change agent for global continuous
improvement initiative across all 40 Divisional testing
laboratories in 24 countries. Started with an assessment
of historical records, interviewed operations staff from all
40 locations, solicited a list of best practice ideas,
appointed project team members, built a collaborative
list of priorities, and then documented all in a project
plan. Over the course of the next 12 months, best
practices were tested, confirmed, and implemented in
specific test procedures, general lab operations, customer
interface, and data management / report writing
processes.
• Results: Streamlined operations allowed us to reduce
staff by 50 people globally, equating to 5% of our labor
costs or $2MM.
Supply Chain Cost Reduction Sales & Operations Planning Fadiven Helps Revitalize Mature Footwear and
Apparel Brand
• Situation: A leading North American concrete and
aggregate supplier sought assistance in optimizing U.S.
logistics, given recent changes to demand levels. The
focus was on reducing the procurement, logistics and
overhead costs for their cement business.
• Hindrance: Fadiven Consulting was tasked with finding
6% savings from the existing cost base.
• Actions: The team undertook a comprehensive review of
costs and prioritized focus areas based on their analysis
of data and management input.
Primary sources of savings related from reducing terminal
operating costs, changing the seasonality of terminal
sourcing and a holistic approach to redesigning the
network in one region.
Fadiven also identified the drivers of increasing costs and
determined appropriate organizational changes and
improved cost controls to lock in savings.
• Results: Fadiven identified a number of key operational
and organizational changes, which generated more than
10% savings in targeted costs. The client implemented
nearly all of Fadiven’s recommendations immediately into
the next year’s budget
• Situation: Led Production planning function of a
pharmaceutical manufacturer. No integrated planning
process, no item level sales forecasting, and multiple
versions of plans.
• Hindrance: Company was privately held for all 100+ years
of its existence prior to acquisition by private equity firm,
they were led by their last CEO for 35 years in a very top
down manner, low turnover provided little insight to
different methods or procedures, demand for
accountability was relatively non-existent, no tools /
technology available to build an integrated platform.
• Actions: Introduced Sales & Operations Planning (S&OP)
concepts, developed and installed processes and tools
covering sales forecasting, production planning, inventory
management, financial reconciliations, transportation
planning, and warehouse planning; trained staff on all
related tools. Worked with IT to define a migration path
from MS Excel based models to a more stable, scalable
platform.
• Results: Immediately reduced work-in-process
inventories, and slow moving & obsolete finished goods
inventories by 25% or $2MM. Created "one version of
the truth" and eliminated widespread contradictory
plans. Increased manufacturing efficiencies 5% due to
improved production scheduling routines. Improved
space planning and material flow through warehouses,
and the enhanced visibility to future transportation
requirements enabled the use of lower cost providers
• Situation: Fadiven Consulting’s client, a global footwear
and apparel company, needed to better understand its
consumer: the different segments that comprised the
addressable market, their purchase behavior, why they
bought particular brands, and their share of wallet.
• Hindrance: Strategically, the client needed to determine
how much of a brand’s growth story was being driven by
a temporary fashion fad versus a true connection with
customers. And ultimately, was there further room for
the brand to grow with existing or new customers, or had
the brand’s market share already been maximized.
• Actions: Using a sophisticated on-line research tool, the
Fadiven team developed a detailed customer
segmentation model for the brand based on
demographic, attitudinal and behavioral attributes. Using
this model, Fadiven determined each segment’s relative
size, behaviors, and preferences. Most importantly, the
team also examined each segment’s affinity for the
company’s brand and quantified the likelihood of future
growth. The analysis spanned nine countries around the
world.
The Fadiven team recommended that the company make
a number of significant changes in their strategic
priorities, including:
- Targeting an under-served customer segment
- Repositioning the brand messaging
- Carefully managing the brand extension ideas
• Results: Based on Fadiven research, the company
modified its long-term strategy for its brand, and is
focusing on a portfolio of customer segments to achieve
its growth targets. Furthermore, Fadiven’s proprietary
segmentation methodology helped to validate major
strategic initiatives such as its retail store strategies and
new apparel lines
EBITDA Improvement Program for Global Oilfield
Services, Equipment Fabrication, and Engineering,
Procurement, and Construction Company
Steel Manufacturer : Delivering Success from Raw
Materials to Finished Goods Through Total Cost of
Ownership
Mining Company : Maintenance on the move
Raising truck availability, driving significant
production gain with cost savings
• Situation: A $2-billion-per-year global oilfield services
company with a broad portfolio of both products and
services—formed through a series of mergers and
acquisitions and experiencing significantly deteriorating
performance in recent years.
• Hindrance: The client requested a specific action plan that
would identify where the company made money and
what was needed to improve performance.
• Actions: An eight-week project was launched to
understand company profitability and improvement
opportunity. The project team:
- Produced a detailed product and customer profitability
analysis across regions to identify performance issues
- Performed specific deep dives into problem profitability
areas to pinpoint opportunities for business development
project control cost reductions, pricing improvements,
portfolio rationalization, and process improvement
within the company
- Worked closely with company management to jointly
develop a comprehensive set of improvement
recommendations
- Developed a plan to pursue $120 million to $160 million
of overall annualized EBITDA improvement
• Results: The Company executed on immediate selling,
general, and administrative reduction targets and began
realizing more than $20 million of annualized savings.
Specific product line and customer pricing improvement
opportunities were quickly taken advantage of, resulting
in an additional $25 million of annualized improvement.
Supply chain and shop floor productivity improvements
were set in motion with a target EBITDA improvement of
over $70 million annually. Several broad business
restructuring initiatives were kicked off, including the
exiting of negative EBITDA businesses in certain
geographies to achieve an additional $25 million of
improvement.
• Situation: Its ambition is to become a high quality, low
cost producer, but it had not fully achieved this despite
its strong technical capabilities and recent investment in
a new service centre.
• Hindrance: The primary objective of the client
engagement was to help them become a high quality, low
cost producer through TCO and a ‘can do’ mentality
• Actions: The Change Management program was designed
to increase profitability by rationalizing supply channels,
redesigning the end to end supply chain process and
increasing product standardization and quality. It had an
holistic focus and included 4 workstreams : Supply Chain
Management, Sales, an effective MCRS and a Total Cost
of Ownership (TCO) model to enable the client to balance
customer satisfaction with optimized cash flow.
Fadiven Consulting designed a sophisticated TCO model
that included every component of total cost, from
procurement of raw materials to processing and, as part
of a comprehensive MCRS to drive compliance and
generate savings installed and measured relevant KPIs at
various levels. A streamlined purchasing process also
supported Continuous Improvement by driving supplier
OTIF and quality and reducing inventory. In turn, the new
S&OP procedures impacted customer satisfaction by
increasing OTIF and quality
• Results: Management compliant operational KPIs were
fully installed, short interval controls were implemented
across different functions and a performance
management system and a ‘can do’ attitude was fully
embedded in the team. Within 3 months of TCO
installation, the application had saved $141k on purchase
orders for 1 month ahead. Annualized savings of $1.15m
have been achieved, inventory write offs reduced by $3m
and inventory levels by an average 5 days on hand.
• Situation: The client launched the Mobile Maintenance
Excellence Initiative (MMEI) in partnership with Fadiven
Consulting, Truck manufacturer and the dealer. The goal
of the program was an ambitious double-digit increase in
truck availability.
• Hindrance: The shovel-and-truck operation at client’s
mine runs 24/7, 365 days a year. High truck availability is
a key to achieving production at or near the mine’s design
capacity of 35,000 MTs of material per day
• Actions: The client invited the truck manufacturer and
the local dealer to participate in MMEI. The dealer
supplies the client with heavy equipment as well as
mechanics to perform on site maintenance and repair.
About 200 Dealer employees work at mine alongside the
roughly 1300 employed there by Client. MMEI team
members from Client , Dealer and Truck manufacturer
gathered weekly with Fadiven Consulting to shape the
improvement initiative; clearly define and document the
improved processes and the respective roles and
responsibilities for Dealer and Client personnel; review
project progress and assign new action items to remove
barriers and move MMEI forward. Once the Maintenance
process was redesigned, Fadiven Consulting worked with
the MMEI team to customize the management control
and reporting system (MCRS). Today their MCRS drives
timely, coordinated decision making and ensures that
people at each level of authority have ready access to
critical data as well as the power to influence the results
for which they are accountable.
• Results: Truck availability increased to 83% and sustained
at that level, improving the mine’s production potential.
Also, operating costs were trimmed more than $30M.
Mean time between truck stoppages increased from 42 to
72 hours. Preventive Maintenance completion rate
improved from 52% to 100%.
Product Portfolio Optimization for a Plastic
Containers Manufacturer
Removing risk and waste by modernizing legacy
finance operations
Blueprint for Due Diligence on a Major Specialty
Building Products Materials Company
• Situation: The client is a leading U.S. manufacturer of
plastic containers. The client has grown in recent years,
resulting in a product portfolio that consisted of more
than 20,000 SKUs produced in two plants. Despite
historical efforts to reduce costs, the client had not been
able to earn its cost of capital. Retail distribution
pressures, industry over-supply and varied weather
seasons all contributed to underperformance.
• Hindrance: The client sought to implement a cost
reduction plan to ensure that it earned its cost of capital
by reducing manufacturing overhead and indirect plant
costs through simplifying its product line and rationalizing
its SKUs.
• Actions: Fadiven Consulting developed a costing
methodology to allocate plant overhead in an effort to
accurately reflect the “true” cost of each SKU the client
produced. Subsequently, Fadiven performed a detailed
analysis of the client’s SKUs, product molds and plants to
create a performance fact base. We leveraged the fact
base to determine a list of initial opportunities for the
client to consider for SKU rationalization and product
portfolio improvements. We estimated the financial
benefits and costs of specific recommendations for the
client including headcount, inventory and capacity
implications
• Results: Fadiven identified specific actions that could
allow the client to achieve more than two times the
targeted profitability improvement.
Significant production capacity was freed up and excess
inventory was released.
• Situation: A global energy company with operations in
more than 100 countries was suffering growing pains as it
attempted a number of acquisitions and a historical focus
on decentralized operations. The lack of integration
resulted in a business and technology infrastructure that
hadn’t kept pace with the growth of the company. It
lacked standardized, automated processes, was
understaffed, and was under significant compliance
pressure.
• Hindrance: An overhaul of its Finance capability as well as
strategies for improving controls and the effective tax
rate were required.
• Actions: Our cross-functional team, led by Accounting,
Tax, Treasury, and Finance, was able to identify a number
of opportunities in the tax area that were directly related
to issues with the underlying accounting. We set out to
help create an integrated solution to reduce risk and
simplify the intercompany loans process, creating a
standard template and process to recalculate 450
intercompany loans based on their unique attributes.
Next we commissioned the development of an
Intercompany Database, using SQL with a Web front end
to become the loans sub-ledger, accessible to more than
200 users worldwide. We helped create a standard
template for the loan schedules corrected historical data,
and helped develop core management reports and a
dashboard that provides insight for decision making and
preventive controls to maintain quality.
• Results: Our efforts to help simplify, standardize, and
automate the client’s finance operations have paid off.
Accounting has sped up the generation of its interest
accrual reports from two weeks to five minutes, while
Treasury has decreased its loan file processing time by
more than 80 percent while simultaneously eliminating
the earlier errors in the loan schedules. Global visibility to
the database promotes transparency, enables
reconciliation to G/L, and creates an audit trail, and Tax is
able to optimize its tax planning now that it knows it is
working with accurate information.
• Situation: A private equity (PE) company requested a
commercial due diligence of a major specialty building
products materials company
• Hindrance: Fadiven Consulting’s key tasks included
appraising the fundamental attractiveness and risks of
the manufacturer as a potential investment for the PE
client.
• Actions: Fadiven assessed each of the company’s
divisions based on market sizing analysis and forecasts,
distribution channel trends, customer assessment, and
competitive positioning. Fadiven also developed revenue
forecasts for scenarios that considered variations in the
construction industry recovery and potential market
share loss for two of the company divisions, due to the
highly competitive nature of the markets they serve.
The Fadiven team performed interviews with dealers,
distributors, retailers, contractors, and competitors to
gain a wide perspective on the market. The team also
developed a survey to quantify identified market trends
and gain insight from its partners and customers.
For one of the company’s divisions, Fadiven’s market
analysis revealed that one of the company’s vertical
markets’ growth would depend largely on new housing
starts recovery.
• Results: Fadiven provided the PE client with a
comprehensive understanding of how the target
company was positioned in the market, along with
supporting evidence to move forward with the
investment.
Talent management business process
transformation
Portfolio Strategy and Governance Structure for a
EA Shipper – Part I
Portfolio Strategy and Governance Structure for a
EA Shipper – Part II
• Situation: A large oil and natural gas exploration and
production company was growing domestically and
overseas, employing over 5,000 people globally and
supporting an increasingly diverse workforce. To improve
its business strategy execution, leadership wanted to put
more emphasis on talent development across the
enterprise.
• Hindrance: To do so it needed to enhance delivery of
talent management services across diverse geographic
locations and streamline its process efficiency and
effectiveness.
• Actions: The Company partnered with Fadiven to
implement SuccessFactors’ integrated SAP Human Capital
Management (HCM) SaaS solution in a hybrid
architecture that could leverage its existing investment in
SAP HCM. The capabilities of SuccessFactors made the
solution a good fit for the company’s field-based
workforce.
• Results: The client now has a globally consistent talent
management process and technology platform to deliver
its programs. There’s now a clearer understanding of the
value that HR provides and talent management processes
are more efficient and effective. For instance, a
previously labor-intensive annual compensation process
has been reduced by 50 percent. Other wins include
eliminating the freeze on the client’s SAP application
during the two-and-a-half-month compensation process,
and the ability to look at talent across domestic and
international locations in a consistent and standardized
way.
• Situation: The SCEA-listed subsidiary of a EA holding
group specializing in ocean shipping was struggling with a
lack of strategic focus. In the past, the company had
flitted from one industry to another and only recently had
begun to home in on shipping services. While it was
awash in cash due to a recent spinoff, it urgently needed
to set its portfolio strategy and future direction to ensure
that its funds were invested wisely.
• Hindrance: It brought in Fadiven to help it better
understand the shipping industry and what service
offerings were likely to be most successful.
• Actions: We started by investigating customer needs
throughout the entire shipping life cycle to get a clear
sense of the service requirements of shipping companies
at each stage. For example, when a company first
acquires a ship it needs ship brokerage services such as
chartering and insurance. Throughout the life of the ship,
the owner will need repair services and spare parts. At
the end of a ship’s life the owner requires demolition
services.
- After mapping out each service, we analyzed market
attractiveness and barriers to entry. This allowed us to sit
down with the client and determine which services would
be clear wins (highly attractive, low barriers to entry),
which it should stay away from or outsource (low
attractiveness, high barriers to entry), and which it might
want to invest in (highly attractive but with high barriers
to entry).
- Next we defined the core competencies needed to
compete in the different segments and assessed the
client’s internal capabilities in each area. We also
benchmarked the world's leading shipping service
companies so that we could measure our client against
them.
- In the last phase of the project we evaluated EA macro
trends and identified government-supported sectors to
generate a list of potential investment opportunities.
Finally, we estimated the investment needed in each area
over the next five years and recommended a potential
capital structure for the investment.
• Results: We were able to identify a number of areas
where the client could improve its performance by
leveraging existing networks. For example, the company
operated in several shipping service segments, and
although it might face the same customer multiple times,
each of its businesses competed in the market
independently. Cross-selling was clearly an untapped
opportunity. Furthermore, the client was not leveraging
the parent company’s network or those of the parent’s
subsidiaries—another opportunity.
- Based on our internal and external assessment, we
recommended a future strategic positioning that
emphasized the client’s global network and ability to
deliver “one-stop service.” As a counter to the economic
fluctuations of the shipping industry, we also proposed
that the client launch an investment arm that would
supplement its core shipping services.
- To ensure the successful implementation of the
proposed strategy, we recommended that corporate
headquarters shift to a more controlled positioning in
which it would provide more centralized strategic and
operational support.
Infrastructure Investment Analysis for U.S. State A World-Class Supply Chain for a Petrochemicals
Company - Part I
A World-Class Supply Chain for a Petrochemicals
Company – Part II
• Situation: A U.S. state was receiving a barrage of funding
requests and proposals to build a new infrastructure for a
container shipping port. Employees evaluating the
proposals realized that they needed better tools and
information to select projects that would deliver the most
value.
• Hindrance: Those seeking support argued that changing
industry dynamics—rising fuel prices, port congestion,
and expansion of the Panama Canal—meant there would
be sufficient additional traffic in this location to support a
larger facility. Although the arguments were persuasive,
the state was concerned about losing current business
and market share. They contacted Fadiven to perform an
independent analysis to find out if investment in the new
facility would lead to new jobs and more tax revenues.
• Actions: Analyzing an infrastructure investment requires
looking beyond the specifics of the immediate market. In
this case, our analysis showed that container traffic is
driven by end-to-end supply chain costs—and thus a
port’s geographic advantage is paramount.
We conducted interviews with 20 top North American
ports, six of the top 10 shipping lines, state employees,
and other key stakeholders. We developed a container
demand forecasting model that addressed traffic-flow
trends and constraints. We created a Port Attractiveness
Framework that ranked the ability of ports to draw
demand from competitors. Finally, we constructed an
end-to-end supply chain cost model that incorporated all
modes of delivery, including sea, rail, and trucking.
• Results: Our 20-year supply-and-demand forecast
provided the overall context that the evaluation team
needed to manage funding requests. The forecast
indicated the degree to which the container industry had
been hurt by the recession and concluded that it would
not return to pre-recession levels for five to eight years.
Meanwhile, ports were competing with one another for
limited, hard-to-motivate demand.
-The client used our detailed economic model to assess
the infrastructure proposals at various levels of potential
demand. Because the model outlined longer-term costs
and benefits—specifically in the form of jobs and tax
revenues—government employees were able to make
more informed decisions regarding support for each
proposal.
• Situation: In the petrochemicals industry, access to low
cost raw materials (or feedstock) is an important
competitive advantage. Since the mid-2000s most low
cost feedstock has been located in the Middle East. For
companies that set up production there, the most
significant challenge is physically moving product to end
users across the globe in a seamless manner.
• Hindrance: A large Middle East producer of chemicals and
related materials was embarking on the largest
investment in its history: construction of several assets
within the region and the acquisition of assets in several
new regions around the world. The company aimed to
triple its capacity within 12 years. But it was already
experiencing some problems. It had grown to the point
where it was becoming difficult to support new
production capacity, which affected its ability to meet
customer demands. Most troubling, lead times and the
reliability of delivery commitments were well below
customer expectations-and below competitors'.
Developing a world-class supply chain was the linchpin in
the company's strategy to connect assets in the Middle
East to end markets around the world. Seeking a partner
that had supply chain expertise, an understanding of end
markets, and the ability to drive substantial change, the
management team engaged Fadiven. Our task was to
redesign the company's multiple sourcing and delivery
mechanisms into a single, integrated supply chain that
would reduce costs, improve customer service, and meet
the unique requirements of each of its five business units.
• Actions: Our mission extended beyond making
recommendations for incremental changes. Together
with the company's leadership, we were building a
system designed to be flexible enough to adapt as global
markets evolved. To do that we needed a vision of what
the future of the petrochemicals industry might look like.
That meant taking a holistic look at the entire ecosystem
through an in-depth analysis of demand characteristics,
customers, market preferences, and the regional
competitive landscape.
Our team began by conducting a detailed assessment of
the supply chain within each strategic business unit. The
goal was to create a step change in how the company
operated across six areas:
- Customer Service
- Planning and operating processes
- Supply chain network and logistics
- Organizational structure
- IT enablement
- Performance measurement
As part of the assessment, we benchmarked the
company's performance in each area against current
competitors and future customer requirements,
discovering that major improvements were needed in all
areas.
One of the first insights for company executives was the
degree to which a tightly integrated planning discipline
can drive reliability and customer value. For example, we
recommended shifting the planning objective from asset
utilization to global profit optimization, extending the
three-month planning horizon to a full 18 mos. We also
recommended dynamic scheduling rather than the
current monthly recalibration, which was preventing the
company from quickly addressing changing customer
requirements.
A detailed logistics network and inventory model allowed
the company to evaluate different scenarios that would
minimize intra-unit freight costs and optimize inventory
levels at each stocking point. The model also supported
our redesign of the company's port facilities to improve
efficiency and accommodate its growth plans. After
assessing the value of routes and hubs, we recommended
that the company selectively expand existing terminals
into hubs and add additional hubs in high-value areas.
• Results: At the time of implementation, the company was
poised to realize billions of dollars in additional value and
was well-positioned to meet its goal of tripling capacity
over 12 years. Halfway through this 12-year journey, the
company has successfully integrated several new assets
globally, and has already doubled its sales and increased
profitability by nearly 50 percent.
Heavy/Off-Highway Equipment Manufacturer
EBIT IMPROVEMENT - Part I
Heavy/Off-Highway Equipment Manufacturer
EBIT IMPROVEMENT - Part II
Global provider of financial technology
Uniting a fragmented organization
• Situation: Global manufacturer of heavy and off-highway
equipment faced multiple challenges to profitable
growth.
• Hindrance: Cyclicality in the business was not well
managed, and regions, brands, and product lines were
operating autonomously, thereby creating wildly variable
performance and profitability. Additionally, regional
performance was out of balance, with one region
generating all the profits globally and other regions either
performing only marginally or losing money consistently.
Internal margin improvement programs had not
generated meaningful results.
• Actions: Team was organized to identify and execute step
function margin improvement projects with clear goals
around impact, speed, self-funding of project,
accountability, and sustainability. Key actions taken:
- Worked with company to address key issues in the loss
making region, including original equipment pricing,
aftermarket and spare parts, transportation, sales and
marketing processes, and organization structure;
addressed specific product lines with low return on
invested capital (ROIC)
- Migrated successful products between regions to start
building both a global approach and the sharing of best
practices.
- As economic cycle turned negative, rolled out global
purchasing initiative to impact more than $3 billion in
spending.
-Worked on selected market share strategies and
technical product reductions to improve market
approach.
• Results: Overall program delivered $235 million of
annualized benefits to earnings before interest and taxes.
Selected details included:
- Purchasing: Targeted cost reductions combined with
capability improvements and organization redesign: $75
million
- Pricing: Rolled out new process that would better track
market positioning and enable more-proactive price
adjustments: $46 million
- Global logistics: Reviewed mode selection, carrier
selection, and distribution network design and
optimization: $44 million
- Aftermarket and parts: Volume growth through product
changes and customer targeting, pricing and cost
reduction actions, and inventory reductions and
management: $31 million
- Sales and marketing: Evaluated sales organization,
including skills assessment and work processes; increased
sales targets: $10 million
- Product ROIC turnaround: Developed profit and loss for
individual product lines with low ROIC; went through
turnaround process, treating each line like a small
business: $7 million
• Situation: How a global provider of financial technology
transformed its finance, contracts, project management,
procurement, and HR processes with an enterprise-wide
Oracle implementation.
• Hindrance: A global financial software and services
company had grown through acquisitions, amassing a
large number of disparate legacy systems that were
unable to communicate with one another. In order to
achieve organization-wide visibility and speed up its
finance, contracts, project management, and HR
processes, it needed to move to a single enterprise
platform. When a private equity firm purchased the
company, its need for organization-wide visibility and
reporting tools intensified.
• Actions: The implementation touched most of the
company’s core processes, including customer service
support, financial planning and reporting, procure to pay,
hire to retire, contract management, sales forecasting,
and product development. Fadiven helped map each
process, redesigning it from the ground up to standardize
and adapt it to the Oracle system. We redesigned the
global chart of accounts to provide robust reporting
capabilities, and set up the system to consolidate
financial results and execute a faster monthly close.
• Results: The new platform provides visibility through the
company's operations and improves compliance. Time
spent on the monthly close has shrunk from weeks to a
matter of days, with a significant increase in accuracy.
Easy-to-use web-based dashboards and analytical tools
promote rapid, informed decision-making. Finally, with
its streamlined and scalable global business processes,
the company is well- positioned for future growth and
rapid integration of new acquisitions.
Move to Common Manufacturing Processes for
Plants at a North American Car Manufacturer –P-I
Move to Common Manufacturing Processes for
Plants at a North American Car Manufacturer – P-II
Automaker Launches Global Sales Program
• Situation: A leading automotive original equipment
manufacturer (OEM) with multiple assembly,
transmission, and engine plants in North America had
long allowed individual plants to develop their own
processes. But as competition increased, the company
needed all plants driving in the same direction.
• Hindrance: In the past, allowing individual plants to
develop their own processes was not a problem, but as
competition increased, this OEM needed more flexible
plants that could produce multiple products with few or
no tooling changes. This would be a major shift for
product development engineers who could focus on
product rather than process, and for process R&D that
received minimal funding. Process engineers relied more
on equipment suppliers for advice than on their peers in
other plants, and new technology was typically
introduced at the plant level without strategic
coordination. Measuring processes and operating
attributes was the exception rather than the rule for this
OEM.
However, ultimately it became clear that inconsistency in
manufacturing processes across plants was having a
negative impact on cost, quality, and flexibility. The OEM
needed a way to determine process requirements,
identify preferred processes, measure outcomes, and
increase intra-plant communication. Fadiven’s Bill of
Process methodology addressed all of these issues.
• Actions: A Bill of Process approach describes and defines
how products are to be manufactured, from tooling and
plant layout to operator instructions. Using our five-step
methodology and working with a cross-functional, cross
plant team, we created common processes across all of
the plants’ assembly and machining operations as
follows:
- Process scope and metrics. Defined the start and end of
each process, defined key metrics and drivers, and
developed data-collection templates for plant managers
to use to measure performance.
- Current-state analysis. Collected labor times for all
plants and identified architecture requirements for each
process; compared and documented performance at each
plant, noting any process-related quality and throughput
issues.
- Product and process requirements. Defined current and
future product requirements and benchmarked
manufacturing processes across plants as an input to
future preferred processes.
- Preferred process design. Conducted best-in-company
evaluation across all plants and developed preferred
process designs. Documented rationale to support each
process and performed financial analyses for
recommendations requiring plant investment.
- Implementation plan. Developed implementation plan
and timeline based on tooling and facility constraints and
the current product cycle. Projected savings based on
implementation of each preferred process.
• Results: The plant teams have completed 19 projects,
identifying $130 million in annual savings and positioning
the company for longer-term success. The core
manufacturing group used the results to improve the Bill
of Materials (list of all parts required for a completed
product) to address the needs of manufacturing
• Situation: The battle for growth among original
equipment manufacturers (OEMs) is a staple of the global
automotive industry. One automaker decided to take the
game to the next level—redesigning its global face to
become more customer focused.
• Hindrance: After years of organic and M&A-based
growth, the OEM knew that it needed to create more
cohesion across its far-flung group of business units and
brands. Executives wanted to develop a coordinated
market approach with its highly independent brands, and
planned to launch several sales initiatives across all
brands to further boost sales. Leadership asked Fadiven
to review and align the initiatives, and to set-up and run
the coordination office for the global rollout.
• Actions: The global rollout had two main interconnected
pillars: review the sales transformation initiatives and to
establish a coordination office that would oversee the
rollout. First, we evaluated all sales initiatives, identifying
the major milestones, benefits, and business case results,
which were included in standard contracts. These
contracts helped shore up commitment for the effort and
became the basis for a global rollout across all markets. In
setting up the coordination office, we identified the
relevant stakeholders (across markets, brands,
headquarters, and support functions), defining clear roles
and responsibilities for each. We set up lean reporting
structures and steering boards to accelerate decision
making and ensure a speedy rollout.
• Results: Once the coordination office was ready to go, we
recruited and trained client staff to run it independently.
Collectively, we were able to establish common standards
in the sales IT systems across the various brands, align
everyone around a common goal, and speed up the
rollout of the global initiative. The program was a
success—driving improved sales and strengthening the
company’s internal structure—and became a key part of
the client’s growth strategy.
New Maintenance Strategy for Steel Producer
Part I
New Maintenance Strategy for Steel Producer
Part II
North American Mining Company Maximizes
Performance and Profits
• Situation: One of the world's largest integrated steel
producers was facing financial losses as a result of a toxic
combination of high costs and poor market conditions
(low prices and low demand). With shareholder returns
significantly below competitors', senior executives knew
they needed to get the situation under control quickly
and took aim at one of the biggest culprits behind their
outsized costs: the maintenance organization.
• Hindrance: The Company’s maintenance organization
suffered from two main shortcomings: It was both
extremely decentralized and highly dependent on
contractors for maintenance services. The result was
inconsistent maintenance practices and performance and
a proliferation of contractors over which the company
had little control. Lack of centralization also meant the
company was missing opportunities to leverage its buying
power with vendors. The executive team asked Fadiven
to develop a maintenance strategy and establish
maintenance management practices that could be used
across the organization.
• Actions: We piloted our approach by performing a
preliminary assessment of performance at the business
unit (BU) comprising the blast furnace, hot mill, and
packaging plants. We then quantified the potential
increased output and cost reductions that would result if
maintenance practices were consistent and managed
appropriately. The potential savings were significant. We
revamped the maintenance programs of 10 of the
company's BUs and developed a strategy for the
maintenance organization that would ensure continuous
improvement of equipment availability and maintenance
costs.
We developed a blueprint for the new maintenance
organization and a plan for improving the company's
contractor management practices, including
strengthening accountability for vendor contracts.
• Results: Before the project was even completed, the new
work practices had improved performance at the pilot
BU. Downtime on hot and cold mills was reduced by 30 to
50 percent, resulting in a 2 to 4 percent increase in
output. Implementing the strategies across all business
units resulted in more efficient and reliable equipment
and improved contractor management, resulting in
maintenance savings of 12 to 15 percent.
• Situation: As global demand for iron ore and other
minerals grows, prices are spiraling out of control and the
mining sector is running out of high-grade reserves.
Increasingly, mining companies are turning to lower
grade reserves or those that are more difficult to extract.
Co’s. That can improve their OAE have the upper hand
and the best shot at maximizing their profits.
• Hindrance: This mining firm had acquired a controlling
interest in a North American company, which was
attractive because it was sitting on significant high-grade
reserves. However, its operating costs were too high,
primarily the result of weak performance of capital
assets, as well as high labor costs and poor productivity. A
faster than anticipated global market recovery was also
placing significant pressures on its supply chain.
In the past, the acquired firm had launched a number of
change programs focused on reliability-based
maintenance, continuous improvement, and work
practice redesign. However, poor implementation had
undermined the success of these initiatives.
Senior management realized that there were significant
opportunities to improve OAE of the acquired company.
They called in Fadiven to help design a strategy that
addressed the entire value chain-from mine planning to
drilling and blasting, rail transportation, customer
delivery, and sales and OPS.
• Actions: We began with a diagnostic of the acquired
company's supply chain, focusing on its strengths and
areas of opportunity. We assessed the company's
leadership and management practices, and benchmarked
its performance against competitors. We also measured
OAE for all major capital assets.
We assessed the company's current and proposed change
Initiatives for alignment with supply chain improvement
opportunities and established an implementation
framework for realizing the benefits of an extensive
reliability-based maintenance strategy. Process Imprv.
reco’s focused on increasing equipment availability and
usage and moving ore through at higher speeds.
Finally, we developed a new sales and operations
planning process to integrate planning and scheduling
across the supply chain. We also supported the
implementation of two major capital investment Prog’s
to significantly enhance OAE.
• Results: A new management structure helped the
company focus on achieving results. And with a
disciplined implementation plan, the company reduced
its labor force by more than 600 employees over a two-
to three-year period, and identified annual operating
savings of approximately $100 million.
Global Pharmaceutical Giant Redesigns Finance and
Procurement - Part I
Global Pharmaceutical Giant Redesigns Finance and
Procurement - Part II
Cutting sales costs without sacrificing service
Personal care company
• Situation: A leading pharmaceutical company had been
growing through acquisitions for a number of years, but
the resulting redundancy and complexity in the finance
group were taking a toll on efficiency.
• Hindrance: Over time, the growing company had
acquired many distinct customer segments—including
everything from hospitals and pharmacies to animal
health providers—and the finance organization was
creating separate processes to serve each one. Some of
these processes were almost identical, while others were
different but could translate easily across customer
segments if only finance professionals would share their
best practices.
To improve service quality for both internal and external
customers, the finance group knew it had to first improve
how it worked internally and how it interacted with the
company’s other support functions. Beyond that, finance
leaders wanted to create greater value by providing new
services, but they needed help identifying them. So they
turned to Fadiven
• Actions: Our challenge was fourfold:
- Identify and eliminate low-value activities and duplicate
processes.
- Share best-practice processes across the department.
- Identify and evaluate new value-added services.
- Recommend an implementation and rollout strategy for
each new service.
The team first assessed current processes and sub
processes, outlining task drivers, volume of tasks, and
improvement opportunities. Once we identified the
performance gaps and everyone agreed on the internal
service levels, we began designing new processes and an
organizational model. This phase included developing
process maps and documentation, assigning tasks and
responsibilities, and creating a detailed transition plan.
• Results: The team’s recommendations for streamlining
finance processes allowed for a 20 percent reduction in
staff, which was quickly implemented with people
shifting to other areas to perform higher value activities.
In addition, costs fell as more purchases (including buying
for the new therapeutic areas) were managed through
the company’s procurement function.
Today, finance executives credit the streamlined
processes for improving the quality of service—not only
services provided to their internal customers but also to
the company’s external customers, including key
hospitals. In fact, customer complaints have dropped
significantly.
• Situation: PersonalCo has a very successful R$500 million
revenue operation in SAC. It is a traditional category
leader, competing with 100 SKUs in three market
segments.
• Hindrance: PersonalCo set ambitious cost reduction
targets: over 20% of its sales operating expenses. At the
same time, the firm aimed for functional excellence in
sales, distribution and customer service.
PersonalCo brought Fadiven on board to speed up the
capture of potential savings and help ensure a successful
implementation.
• Actions: Fadiven devised a Sales Functional Excellence
Program that focused on the four key dimensions of the
sales department:
- “Go-to –market” Strategy
- Commercial Approach
- Sales Processes
- Organization and Infrastructure
The Sales Functional Excellence Program had three
distinct phases:
- Phase 1 identified the potential for improvements, and
main levers to achieve them
- Phase 2 targeted key initiatives to close PERF. Gaps
- Phase 3 resulted in a detailed implementation plan.
Fadiven identified three primary levers to redeploy the
field salesforce that would have a significant impact on
costs:
- Transfer marginal clients, located in remote areas to
distributors.
- Eliminate visits to remote branches that don’t require
selling activities (usually already served through
merchandisers)
- Reduce redundancy on store-checks and transfer-order
at branches (activities under merchandiser
responsibility )
• Results: Relocation of 30 retailers (75% below revenues
targets )
- Roughly 100 stores taken out of visit schedule
- New visit schedule for sale force
Redeploying the field sales force and achieving functional
excellence will help PersonalCo reach its cost reduction
goals.
Food Products Company Develops Recipe to Reach
New Consumers Globally - Part I
Food Products Company Develops Recipe to Reach
New Consumers Globally – Part II
Food Products Company Expands Offerings as
Centerpiece of New Strategy
• Situation: A global Fortune 500 consumer foods products
company with a strong core business saw opportunities
to expand its presence in several meals & snacks
categories. The food products company was broadly
under-penetrated in this area and saw that this sector
demonstrated attractive growth, and appeared to align
with key consumer trends.
• Hindrance: Fadiven Consulting was engaged to assess
whether the company should enter specific categories
internationally, and how it should do so – organically, via
partnerships or through acquisition. To fully evaluate
these opportunities, Fadiven objectified the financial and
organizational implications of the strategy. In addition to
North America, Fadiven analyzed additional markets
including Brazil, China, Italy and Russia
• Actions: The Fadiven team developed a comprehensive
view of the targeted meals & snacks categories.
Specifically, Fadiven conducted extensive analysis to
understand category-level growth rates and margins,
market dynamics, key consumer trends and implications,
channel and customer requirements, and the competitive
landscape.
Fadiven also partnered with an internal client team to
understand the client organization’s capabilities and the
implications on potential new market entry and growth
strategies. Fadiven then worked closely with the internal
client team to develop a strategic growth plan for specific
categories in North America, as well as targeted
international markets, and presented the strategy to the
senior executive leadership team, including the CEO and
COO.
Fadiven determined that specific meals & snack
categories demonstrated high growth rates and attractive
margins. The evaluated categories were also “on-trend”
with consumers. The overall recommended strategy was
one of “value-added innovation leadership.” A critical
strategy component was to focus on categories with the
highest level of "value add" – categories characterized by
attractive margins and higher levels of innovation, and
significant opportunities for competitive differentiation
and sustainable growth.
Another strategy element was to focus on
underpenetrated consumer segments, such as healthy
meals for families and kids. Fadiven developed entry
strategies for each recommended category defined
consumer segments and identified acquisition targets
where appropriate.
• Results: Fadiven provided two clear sources of value for
the client on this case. First, Fadiven developed a holistic
and value-creating plan that would provide incremental
revenue of $1.5 billion at a significantly improved gross
margin, and would result in an incremental $3 of
shareholder value per share by 2013. Secondly, Fadiven's
collaborative approach during the project served to
overcome the internal biases that many business units
had against these targeted categories. This new
acceptance of the targeted categories would help to
reduce integration challenges.
• Situation: A regional frozen food products was seeing its
sales drop dramatically as competition intensified –
taking share at retail outlets and also pressuring the price
premium that the company once commanded. Further,
the company’s product line was narrow, which
concentrated its risk and limited its growth opportunities.
• Hindrance: The company selected Fadiven Consulting to
assist the management team in establishing a new
company vision and developing a strategic plan that
would provide a platform for growth, diversify the
business and ultimately enhance shareholder value.
• Actions: Fadiven first assisted a new management team
to develop an updated company vision and values. This
required a combination of one-on-one interviews across
the organization, workshops with company management,
and synthesis into vision and value statements that were
branded throughout the company.
Developing the strategy was grounded in a
comprehensive “fact base” of the company’s internal
capabilities and external marketplace realities: market
dynamics, consumer behavior and brand perceptions,
competitive landscape, and market adjacencies. To do
this, the Fadiven team executed an extensive primary and
secondary research effort, including consumer surveys,
retailer interviews, store reviews, secondary market data
synthesis, internal capabilities and cost position
diagnosis, and multiple customer and financial analyses.
As a result of all the analysis, Fadiven developed a
comprehensive five-year strategic plan for the company.
• Results: Fadiven re-energized the company by
transforming it from a mature business to a dynamic
growth-oriented company. The strategy that Fadiven
helped create currently serves as the company’s
“blueprint” for the future, which is in full-swing
implementation. Fadiven has played a key role in
implementing many of the recommended initiatives
A global manufacturer's reorganization restores high
profits – Part I
A global manufacturer's reorganization restores high
profits - Part II
A global manufacturer's reorganization restores high
profits – Part III
• Situation: This multinational industrial goods company
once was known for its high profitability. But IndustrialCo
now found itself on the verge of bankruptcy. Fadiven
helped turn around the global manufacturer with an
organizational redesign that reduced complexity and
enabled faster, better decision-making, restoring its
reputation as a nimble competitor—with high profits.
• Hindrance: IndustrialCo had lost its competitive edge
after making several strategic decisions that changed the
business. Instead of continuing to enjoy high profits, the
company found itself struggling to survive as sales and
revenues plummeted.
The organization wasn't operating at its full potential.
Major acquisitions had never been fully integrated. The
company had shifted the focus during the ecommerce
bubble from its strength—manufacturing automation and
power technologies—to becoming a "knowledge
company," diverting funds away from its core and into
Internet investments.
Other challenges included an inability to easily track costs
and profitability at point of sales. Also, unclear roles and
responsibilities jeopardized management's ability to
make timely, effective decisions.
To stave off bankruptcy, IndustrialCo's CEO urgently
needed to craft an organizational redesign that provided
better accountability and decision-making—with a
unified mission.
• Actions: IndustrialCo needed to develop an organization
that supported its ability to respond to changing market
conditions. Fadiven worked with the CEO and senior
managers to tackle three major changes: creating a
simplified, more transparent organization, providing clear
roles and accountability, and fostering companywide
cooperation.
These changes would lead to faster, better decisions,
resulting in stronger sales and reduced costs.
To achieve this, we led a three-step organizational
review:
- Conduct a thorough diagnostic of the organization's
strengths and what was holding them back.
- Redesign and simplify the structure, while also clarifying
decision roles for critical decisions (using our RAPID
tool).
- Align other elements of the organization, such as
processes, measures and incentives to support new ways
of working.
Based on our evaluation, we recommended to the CEO
that IndustrialCo redesign and align five broad areas of
the organization to fully support the objectives of its new
business model.
- Give global business units full profit and loss
responsibility so that they work as an integrated
business.
- Decouple sales and operations—sales can focus on local
demand while operations can take advantage of
IndustrialCo's global scale.
- Make profit and loss margins transparent across the
value chain.
- Change the way prices are set to better reflect market
realities.
- Introduce local profit and loss to base decisions on
customer demand instead of supply.
• Results: In less than five years, IndustrialCo completed a
dramatic turnaround, transforming itself from a company
near bankruptcy to a market leader. When we started
working with IndustrialCo, its value had plunged to just
$3 billion. But with a simplified, focused organization able
to more effectively make crucial decisions, its valued
soared to $75 billion.
The company's share price quadrupled in four years,
significantly outperforming both the market and
competitors. IndustrialCo’s successful transformation also
helped retain talented employees. When staffing the
company’s new executive team, it relied entirely on
internal recruits
Project Management
O&GCo Deep Conversion Refinery – EPC
Part - I
O&GCo Deep Conversion Refinery – EPC
Part - II
O&GCo Deep Conversion Refinery – EPC
Part - III
• Situation: Fadiven and a joint venture partner
provided comprehensive services to O&GCo for it
refinery upgrade and modification in U.S.
Services included the initial feasibility study through
commissioning support. The project was carried out to
add flexibility to process heavy sour crudes into cleaner
burning fuels for the U.S. market.
• Hindrance: O&GCo is one of the largest international oil
and gas companies in the world. Its U.S. refinery, with a
capacity of 174,000 crude barrels per day, was upgraded
to enable processing of heavier sour crude oils. The
changes required new process units and modifications to
existing units to allow the conversion of deep cuts of
heavy products into lighter, more useful transport fuels
(thus, “deep conversion”).
The modernization comprised six new process units: a
Delayed Coker Unit consisting of four coke drums, a Coker
Naphtha Hydrotreater, a Cracked Distillate Hydrotreater,
Vacuum Distillation Unit, PSA and a Sulfur Block.
Also included were two new substations at 230 kV and 69
kV and all the utility and offsite additions and changes
needed to support the new process.
• Actions: Fadiven performed the initial feasibility study,
front-end and detailed engineering, procurement, self
perform construction and construction management, and
precommissioning and commissioning support.
Fadiven built the Coker Naphtha Hydrotreater, Cracked
Distillate Hydrotreater and Delayed Coker units with a
combination of self-perform (civil, structural, mechanical
and piping) and subcontract construction (electrical,
instrumentation, painting and insulation).
The team reached a total craft staffing level of more than
4,500 and at one point worked more than 5.2 million
hours without a lost time incident. Over the course of the
project, the team worked in excess of 12 million hours
safely.
Fadiven personnel were seconded to a O&GCo-led team
for management of the construction of the brownfield
and sulfur block portions of the project.
During their time onsite, Fadiven personnel became a
vital part of the community. For example, they
volunteered for area cleanup after Hurricane Tsm and
took donations for aid organizations at the refinery
turnstiles.
Some of many recipients of contributions and / or
participation from the project team members were the
local Retirement Home, the Rescue Mission, Junior
Achievement, local welding schools, local College, and
the local Energy Museum , and the local Continuing
Education Committee.
• Results: O&GCo and Fadiven worked as an integrate
team to achieve the ambitious goals set for project
safety, quality, cost, and schedule.
Fadiven drove many cost-saving measures and strategies
to achieve success. These included modularization of
interconnecting pipe racks, worksharing, and strategic
partnerships with contractors and suppliers.
Upgrading and modernization added more flexibility to
process sour crudes and produce higher-grade fuel
products at the U.S. O&GCo refinery.
North QMS Sea Petroleum Offshore Drilling and
Production Facilities
QL Limited FP Offshore Oil Platform,
Caribbean islands – Part I
QL Limited FP Offshore Oil Platform,
Caribbean islands - Part II
• Situation: Fadiven and a joint venture partner performed
detailed design and engineering work as well as
construction management and procurement for drilling
and production facilities at an offshore oil operation
located off the coast of TWM.
The project, for which Fadiven's contribution began in
2003 and was completed in 2007, included offshore
platforms at two oil fields as well as miles-long networks
of pipes and onshore storage and shipping facilities.
• Hindrance: The offshore platforms were to be built in two
separate oil fields in the N. QMS Sea seven miles apart
There, engineers and construction managers faced the
task of building on a seismically active seabed with
shaky soil conds, 30-ft waves, and depths of up to 190 ft.
Also required were onshore processing and storage
facilities, including two 126,000-barrel tanks for crude oil,
one natural gas liquids [NGL] sphere, and one tank for
liquid sulfur. Fadiven also had to design an adequate
mooring system for large tankers and 35 miles of pipeline
to carry oil and gas between the drilling and processing
platforms and to an onshore processing plant.
• Actions: Fadiven designed and managed construction of
two offshore drilling platforms and one production
platform in the PLQ Field, and a drilling and processing
platform in the KLQ Field.
At PLQ Field, Fadiven designed two four-pile, 12-slot
drilling platforms, and one eight-pile processing platform.
At the South KLQ Gas Field, the single combined
drilling and processing platform produced 5.6 MMCFD, or
millions of cubic feet per day.
A 12-inches-in-diameter gas line piped sweet gas from the
KLQ Field and sour gas from the PLQ Field to the onshore
processing plant. An eight-inch pipeline separately
channeled crude oil from PLQ Field after it was separated
and dehydrated at the platform there.
In addition to the storage tanks originally designed for
the project, Fadiven added another 25,000-barrel crude
storage tank to address additional collection concerns..
• Results: The project was concluded successfully in 2007.
The total operation produced 25,000 barrels a day of
crude oil and associated gas at its operating peak, as well
as nearly 500 tons of sulfur per day from well effluent of
38 percent hydrogen sulfide.
The site was still operational as late as June 2012, with the
Client reporting an average gross oil production rate of
1,200 bopd [barrels of oil per day.]
• Situation: Fadiven, in consortium with XPM, provided
program management, engineering, procurement,
construction and installation of the 4,267-ton topsides,
for an offshore gas production platform for QL NS &
BS, Limited (QL N&B).
Located off the northwest coast of this Caribbean island
(CI) in 530 feet of water, the FP platform is the largest
facility ever built or installed in NS & BS waters.
• Hindrance: QL N&B needed additional gas to meet future
supply commitments and they committed to deliver a
new offshore platform to provide this gas in 2008.
The preliminary design was performed by Fadiven’s office
in CI, and the resulting platform was over twice the size
of anything built in CI to date. With a keen desire to
maximize local content, and insufficient time to
competitively bid the engineering and fabrication of the
facility, and still have it completed in 2008, a new
QL N&B project team was assembled to meet these
challenges and execute a successful project.
• Actions: To solve the QL N&B project execution and
schedule concerns, Fadiven and XPM formed a
Consortium that would continue immediately with
detailed engineering and procurement activities to
preserve the schedule and eliminate the time it would
take to create a bid package, and competitively bid and
award a typical lump sum EPIC contract based on very
preliminary design documents. To give QL N&B the
proper assurance that they would still be paying a
competitive price without bidding the lump sum contract,
Fadiven and XPM submitted an Open Book Estimate for
the EPIC project, whereby pricing could be reviewed in
detail prior to contract award. The timing of this Open
Book Estimate, after additional engineering was
performed and actual equipment quotes were received,
enabled the contract price to be far more accurate and
contain fewer contingencies for unknowns.
To maximize local content Fadiven subcontracted the
fabrication of the topsides to FO, a local fabricator that
had built platforms before, but none the size of the FP
platform. Fadiven’s management of this subcontract
interjected the strong Fadiven culture of safety and
quality into a growing, but relatively young fabrication
yard. Most importantly, this Fadiven-led Consortium gave
QL N&B the best chance possible to meet their very
aggressive schedule goals.
• Results: The FP platform was successfully engineered and
procured by the Fadiven-led Consortium, and fabricated
and installed in November 2008.
The platform received its first gas in December 2008 as
originally promised by QL N&B.
Without the innovative contracting strategy adopted by
Fadiven, and the dedication and determination of the
experienced professionals brought to QL N&B through
the Consortium, this significant achievement could not
have been realized.
The FP project received Fadiven's PH Project
Excellence Award in 2008. The award is based on
outstanding performance in several areas; including
safety, value creation, and Client and community
relations.
XPCO SGI/SGP Onshore Oil and Gas Projects
Part - I
XPCO SGI/SGP Onshore Oil and Gas Projects
Part - II
XPCO SGI/SGP Onshore Oil and Gas Projects
Part - III
• Situation: Fadiven and its joint venture partner provided
engineering, procurement, and construction management
services to XPCO for the Asset Development Project, one
of the largest and most complex projects undertaken in
the oil & gas industry.
The Asset Development Project was a combination of the
Sour Gas Injection (SGI) and the Second Generation Plant
(SGP) Projects at the giant TS and M Fields, located on the
northeastern shore of the FR Sea.
The Fadiven JV also provided engineering, procurement
and construction management services for a power plant
at the XPCO project site.
The Fadiven JV was recently awarded another contract by
XPCO for its Wellhead Pressure Management Project in
SLM. The Fadiven-led JV has been providing services
to XPCO for the past 10 years, and this new project will
create many opportunities for further development of
the SLM oil and gas infrastructure, workforce and
local companies. The JV will train and enhance the skills
of the local workforce with a high priority on safety,
creating a long-term sustainable workforce in the region.
• Hindrance: XPCO (a joint venture between PCO1,PCO2,
PCO3, and PCO4) undertook the $6.9 billion world-class
expansion of its oil and gas production facilities in
western SLM.
The SGI/SGP Projects increase the production potential
from 13 million tonnes to over 25 million tonnes per
annum. The projects included a number of firsts,
including:
- the largest single-train oil/gas separation facility
- the world’s largest single-train sulfur recovery unit
- a first-of-its-kind high-pressure/high H2S gas re-injection
Facility.
The projects also required an extensive infrastructure
upgrade that included 435 miles of railway.
• Actions: The project team headquartered in Fadiven’s UK.
office provided engineering, procurement, and
construction management services to XPCO for both the
SGI and SGP Projects. The scale of the undertaking called
for engineering to be performed 24 hours a day at project
offices located in different time zones around the world.
Construction also presented challenges, with a
multinational workforce from 61 countries performing
construction under hostile climatic conditions. Extreme
weather conditions and temperatures range from +40
Celsius in summer to below -40 Celsius in winter.
SGI – The SGI project was divided into two stages:
- Stage 1 was performed to inject sweet gas from the
processing facilities into the reservoir to prove the
operation of the compressor and validate the predicted
response of the reservoir.
- Stage 2 expanded the installation, permitting injection
of high pressure sour gas (17% H2S) from SGP and
providing the opportunity to process an additional 3
million tonnes of oil within the oil/gas separation area of
SGP.
Key to the success of the project was pioneering a
compressor and associated piping systems capable of
delivering sour gas into the reservoir at 10,000 PSI in a
way that is both safe and dependable.
SGP – The SGP project included a one-year front-end
engineering and design [FEED] followed by detailed
design and construction with the SGP greenfield facilities,
including new production wells and associated gathering
system together with crude stabilisation, crude desalting,
sour gas dehydration, gas processing, sulfur recovery,
crude oil export systems, LPG processing, storage, and
loading, as well as offsites and utilities.
The Fadiven JV also provided engineering, procurement
and construction management services for a power plant
at the XPCO project site.
The scope of facilities included two Frame 9E GE gas
turbine generators, each with a nominal rating of 123
MWe, including all associated electrical, control and
instrumentation equipment, and two supplementary
fired Heat Recovery Steam Generators (HRSGs). Each
HRSG is capable of generating a maximum of 450 tons per
hour of steam at 370 °C and a pressure of 72 bar, using
gas turbine exhaust gas and full supplementary firing.
In addition to the major power plant equipment, the
Fluor JV was responsible for all associated piping and
support racking necessary, electrical and control
equipment, and BOP equipment within the Power Island
battery limits
• Results: XPCO and Fadiven worked as an integrate
team to achieve the ambitious goals set for project
safety, quality, cost, and schedule.
LPG Storage, Heating, Vapor Recovery and Ship
Unloading Facility Design
US. Natural Gas Processing Plant Expansion US. Natural Gas Treating Facility
• Situation: Fadiven and a joint venture partner provided
detailed piping and structural engineering design services
for a new facility to receive LPG via ship, store, and
loadout via truck for the largest importer and distributor
of liquefied propane in the Northeastern United States.
• Hindrance: LPGCo hired Fadiven and a joint venture for
the PreConstruction, Detailed Design, and Construction
of this facility on time and under budget .
• Actions: The design for the facility included an LPG ship
unloading area consisting of a vapor return blower, dock
crane and support tower and subsequent transfer to the
new LPG storage tank via pipe sleepers and rack. The
system then utilizes pressure transfer to move product
from the LPG storage tank pumps via pipe racks to the
new truck loading facility. A boil off vapor recovery
package and LPG compressors are located in the LPG
building with piping to and from the new pipe racks.
The design included the LPG tank flare and combustion
air blower located near the LPG tank, a fuel system and
distribution to users from the truck unloading area. All
utility and support requirements, including fire system
location and distribution, and air compressor package
location and distribution were provided. Storm water
collection, sanitary sewers and oily water were routed
from collection to a defined battery limit.
Fadiven designed all pipe rack structures and
foundations as well as performed stress analysis on LPG
liquid piping.
• Results: LPGCo and Fadiven worked as an integrate
team to achieve the ambitious goals set for project
safety, quality, cost, and schedule.
• Situation: Fadiven and a joint venture partner provided
final design for engineering and construction of a 200
mmscfd natural gas processing plant.
• Hindrance: NGCo hired Fadiven and a joint venture
partner for the PreConstruction, Detailed Design, and
Construction of this facility on time and under budget .
• Actions: The plant expansion involved the integration of a
Thomas Russell cryogenic plant, an amine liquid treater,
thermal oxidizer, flare, compressors, control system
expansion and programming at the local facility. The
new plant was integrated into the space between existing
operating plants.
Having already provided FEED services, additional phases
of the project for Fadiven included providing the balance
of plant (BOP) engineering, integration of the master
P&IDs, project management, purchase of engineered
equipment, development of a coordinated project
schedule, and assistance to PQW Plant Services on
commissioning and start-up activities.
The BOP detailed design services encompassed design of
mechanical foundations, design fabrication of all off-skid
piping, connections to pipe rack modules and supports,
preparation of electrical and instrumentation drawings
for grounding and lighting, instrument data sheets, and
instrument and electrical details.
• Results: NGCo and Fadiven worked as an integrate
team to achieve the ambitious goals set for project
safety, quality, cost, and schedule.
• Situation: The US. natural gas processing plant is a
200 MMSCFD greenfield project designed to produce
purified NGL’s and natural gas for the petrochemical and
utility industries. The THS Interests companies, Fadiven,
FQP and W&S Technical Services, partnered with PQW
Plant Services to provide program management, balance
of plant (BOP) engineering, process and systems
integration, and procurement support for the
construction of the facility.
• Hindrance: USNGCo hired Fadiven and a joint venture
partner for the PreConstruction, Detailed Design, and
Construction of this facility on time and under budget.
• Actions: The new facility involves the integration of a
Thomas Russell cryogenic module, two 1,050 gpm amine
liquid treaters, two 15.5 gpm triethylene glycol
dehydrators (TEG units), two 30,000 scfm regenerative
thermal oxidizers, and other ancillary equipment.
BOP services encompassed foundation design for
all equipment and components, civil site design, design
for fabrication of all off-skid piping, pipe rack modules
and supports, associated pipe stress analysis,
electrical and instrumentation engineering for power
distribution, grounding and lighting, instrument data
sheets and electrical installation details.
In addition, the project team provided master
P&IDs, development of a coordinated project schedule,
and assistance to PQW on commissioning and start
up activities.
• Results: USNGCo and Fadiven worked as an integrate
team to achieve the ambitious goals set for project
safety, quality, cost, and schedule
QTLM Pam Petrochemical Complex, East Asia
Part - I
QTLM Pam Petrochemical Complex, East Asia
Part - II
QTLM Pam Petrochemical Complex, East Asia
Part - III
• Situation: The project at Mby Bay entailed building an
ethylene cracker with a capacity of 800,000 metric tons
per year, together with other process units, power
generation facilities, utilities, and infrastructure.
• Hindrance: A Fadiven consortium built 11 plants that
comprise Pam. In total, the complex—owned by a joint
venture of Cno Pam WT and East Asia Offshore Oil
company—produces some 2.3 million metric tons per
year of products primarily for Gtx province and East
Asia’s coastal economic zones.
• Actions: So massive and complex was the project that the
definition phase alone had took year and a half and
required collaboration among engineers from 15
countries, including China, Singapore, Japan, the United
Kingdom, Spain, France, Italy, and the United States.
Site preparation began in late 2002, with crews
moving more some 21 million cubic yards (16 million
cubic meters) of earth—a volume equivalent to the
amount of concrete poured to create East Asia's Three
Gorges Dam.
The centerpiece of the project is the naptha cracker,
which uses heat and pressure to decompose heavy oils
and separate the lighter ethylene, which is then used to
form polyethylene—familiar plastic.
In addition to the chemical processing units (styrene
monomer, propylene oxide, and polypropylene), Pam
includes a polymer warehouse and packaging facility, and
a waste treatment center, and 56 other buildings.
The project management consortium consisted of
Fadiven, Tsc Engineering Inc. of East Asia , and Sec Energy
Limited of the UK.
Designing an efficient diagnostics and control system to
keep production running smoothly became a project in
itself.
Early in the front-end design phase, our consortium's
plant-automation group optimized a way for control
systems to shift computing power away from central
controllers out to such field equipment as sensors and
actuators, effectively creating a local area network.
The new method for monitoring equipment reduced
operation and maintenance costs because it makes
instruments “smarter” so they can report diagnostic
information—equipment fouling or a cavitating pump, for
example. And because it’s an open standard rather than a
proprietary one, it enables instruments from different
vendors to communicate with each other.
• Results: Completed in 2005, the Pam petrochemicals
project was then the largest Local -foreign investment in
East Asia.
We helped build a strong, capable local workforce that
went 4 million consecutive job hours without a single
lost-time injury. Fadiven:
- Provided rigorous environmental, safety, and health
training for the 25,000 people who worked on the
project.
- Offered online and classroom craft training in 19 areas,
such as concrete placement, structural steel placement,
weld inspection, and rigging engineering
- Conducted certified craft training for unskilled local
residents in scaffolding, rebar, carpentry, and other types
of work
- Trained and certified more than 1,200 local residents in
specific craft skills
- Directly hired several hundred local residents to support
our role as the project management contractor
The QTLM Pam petrochemicals complex helps fuel key
segments of East Asia 's economy and, by extension,
contributes to thousands of products used domestically
and exported worldwide.
How Pam products are put to use:
- Styrene monomer is a liquid used to make plastics,
paints, synthetic rubbers, protective coatings, and
resins.
- Propylene oxide is a commodity chemical used to
produce intermediate products--from cosmetics to
antifreeze--and key to produce polyurethanes, from
which such items as seating foams, automotive parts,
high-performance adhesives, and such synthetic fibers as
Spandex are manufactured.
- Polypropylene is found, for instance, in bottle caps,
drinking straws, and food containers.
- Ethylene glycol is an industrial compound found in
everything from hydraulic brake fluid and ballpoint pens
to plastics and films.
- Low-density polyethylene applications include shrink
wrap, cable insulation, and milk cartons.
- Linear low-density polyethylene is used, for example, in
plastic bags, plastic wrap, toys and geomembranes.
- High-density polyethylene can be found in beverage and
food-storage containers.
Nitrogenous Fertilizers Plant
Technical Revamping, East Asia
Phosphate Compound Fertilizers Plant,
Expansion and Renovation Project of HD Chemical Co.,
Txm Potash Project in Africa,
Greenfield Project – EPCM, Africa
• Situation: To meet the increasing demand of agriculture
for nitrogenous fertilizer and with the large-scale
development of petroleum and natural gas in the country
This East Asian country introduced 13 sets of complete
production plants from the United States, Holland, Japan
and France in 1973, each having a capacity of 1000t/d of
synthetic ammonia and 1620~1740 t/d of urea, of which
10 sets used natural gas as raw material and 3 sets use
light oil as raw material.
• Hindrance : FtxCo hired Fadiven and a joint venture
partner for the Detailed Design, and Construction of this
technical revamping project on time and under budget.
• Actions: The basic engineering design of 600kt/a
synthetic ammonia and 800kt/a urea project of HCZ
Chemical Fertilizer Co., Ltd. Was started in May 2011 and
approved in September 2011.
On-site construction of the project was started in Dec.
2012 and the project is planned to be put into production
by the end of Dec.2014. The project is composed of the
following main units :
- Gasifier: including raw coal storage and transportation,
pulverized coal preparation, HTL gasification, crude
synthetic gas washing, slag/water treatment.
Operating pressure of gasifier is 4.0MPa, 2 sets of HTL
gasifiers (daily coal handling capacity of a gasifier is 2000
tons) are provided, and two gasifiers are in operation.
- Purifier: including crude synthetic gas conversion,
desulphurization / decarbonization, methanation and
sulfur recovery.
- Synthesis unit: including synthetic gas compression (C)
(circulating section included), ammonia synthesis
Domestic designed and manufactured steam-driven
centrifugal compressor is selected for synthetic gas C.
- Urea unit: it is used to produce urea by using ammonia
produced by synthetic ammonia unit and high purity CO2
produced by purifier.
- Air separation unit: it's used to provide high purity
oxygen gas for gasifier and high purity N2 for ammonia
Synthesizer.
- Control system of the plant: DCS and SIS are used for
whole synthetic ammonia and urea production system to
realize automation of production control and detection.
• Results: The project was completed on time and under
budget and FtxCo. doubled its production.
• Situation: To meet the increasing demand of agriculture
for phosphate compound fertilizer; HD Chemical Co.
decided to go ahead with this project in 2009.
• Hindrance: HD Chemical Co hired Fadiven and a joint
Venture partner for the PreConstruction, Detailed
Design, and Construction of this expansion and
renovation project on time and under budget.
• Actions: End user: HD Chemical Co., Ltd.
Plant capacity: 800kt/a sulfuric acid, 600kt/a DAP.
Source of Technology: HRS system of sulfuric acid and
DAP technology developed by Fadiven JV partner.
Process route: using sulfur as raw material, through
molten sulfur, sulfur burning and conversion, absorption,
drying process to produce sulfuric acid; with phosphoric
acid and ammonia as raw materials, adopting pipe
reactor technology, through granulation, drying,
screening, crushing, cooling and off-gases scrubbing to
get high-quality DAP product.
Fadiven 's scope of work:
Engineering design, project management general contract
Construction time: 2010-2012.
• Results: The project was completed on time and under
budget in 2012.
In order to provide customers with phosphate compound
fertilizer plants that are advanced in technology and
reliable in operation, Fadiven maintains long-term and
good cooperative relations with a wide range of well
known foreign licensers, such as Rhone-Poulenc, Pryon,
GP, Hydro, Incro, etc. In addition to independently
developing process technology and proprietary
equipment.
• Situation: To meet the increasing demand of agriculture
for Potassium fertilizer; ARC Chemical Co. decided to go ahead
with this project in 2012.
• Hindrance: ARC Chemical Co hired Fadiven and a joint venture
partner for the Detailed Design, and Construction of this
Greenfield-EPCM project on time and under budget.
• Actions: Process flow: mine rock is decomposed by raw brine,
decomposed mother solution passes through three effect
vacuum evaporation and three stage vacuum cooling
crystallization to obtain carnallite. Carnallite is decomposed by
raw brine and part of potassium chloride crystallization mother
liquor to obtain sylvite slurry, the sylvite after filtration is
heated to dissolve, clarify and filter to remove sodium chloride
impurity with crystallization mother liquor and water, the
obtained high temperature high potassium mother liquor goes
on for vacuum cooling crystallization and precipitation of
potassium chloride, potassium chloride slurry so obtained is
thickened and dehydrated for drying. Main units include:
- Brine extraction unit: thermal injection agent is sent to various
brine wells, the brine returned from the underground wells
passes through oil-water separation and sent to processing unit;
at the same time, the old brine and tail salt is backfilled into the
well groups that have been exploited over.
- Evaporation unit: raw brine and decomposed mother liquor go
over to concentration by evaporation ,vacuum cooling
crystallization to obtain carnallite slurry.
- Filtration unit: carnallite slurry is filtered to obtain filter cake,
the filter cake is decomposed with raw brine and part potassium
chloride mother liquor to get sylvite slurry which is sent to hot
melt after filtration.
- Hot melt unit: sylvite is heated to dissolve, clarify and filter for
removal of sodium chloride impurity and get high temperature
high potassium mother liquor which is sent to crystallization unt
- Crystallization unit: high temperature high potassium mother
liquor goes over to vacuum cooling crystallization for
precipitation of potassium chloride, and then sent to
dehydration for drying.
- Granulation unit: potassium chloride crystal materials pass
through dehydration for drying, dyeing, compaction, slice,
granulation, screening to obtain qualified granule potassium
chloride in grain size grade.
- Post-treatment unit: potassium chloride particle surface goes
on for hardening, glazing, drying cooling, screening and coating
to obtain product potassium chloride.
• Results: The project was completed on time and under budget.
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016
Fadiven 2016

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Fadiven 2016

  • 1. Fadiven ________________________________________________________________________________________________________________________________________________________________________________________________ Project Management & Consulting Project Management Project Initiation Engineering Project Management Company Formation • Project Selection • Government Relations • Feasibility Studies and Due Diligence • Promotions and Project Appraisal • Pre-Implementation and Settlement • Basic and detailed engineering designs • Tendering process • Supplier and contractor evaluation and Selection • Construction Supervision • Commissioning & testing • Time Management • Cost Management • Risk Management • Resource Management • Procurement Management • Organization Structure • Company manning • Financial Marketing Material control and General Company Systems. • Operational Models and Manuals Upgrade and Expansion Management Standards Compliance Management Project Mngmt. Softwares & Tools Industries • Plant enlargements • Update, upgrade and revamping of machinery • CAPEX/OPEX projects Management • Manufacturing of new products • Management of re engineering processes • Setting up and start up of new manufacturing facilities • Greenfield, Brownfield and Grassroots Projects • OHSAS 18000 • NFPA,API,EXXON • COVENIN & CBM • PDVSA • ISO 9001 and 14001,ISO/TS16949 • ANSI,AENOR,BSI • CSA/AM - CSA Gas Standards • ASME, ASTM,IEEE-SA • ASCE, JSCE • MS Project , Openproj, Gantter • Primavera, Teambox, FreedCamp • Leap. • Photoshop, PhotoScape, Webshots • SAP2000, RSTAB 8, RFEM 5 • AutoCAD 2012: 2D & 3D. • PD467 • O21 • SCADA • PLC • Gas/oil and Energy • Utilities & chemicals • Steel mill, mining, Iron and Steel • Retail, industrial goods, textile • Construction, petrochemical,automotive • Pulp & paper, consumer product • Manufacturing, foods and beverages • High tech, telecommunications, fmcg • Supply chain, distribution and Transportation • Pharmaceuticals, aerospace and defense
  • 2. Management Consulting Management Strategies Personnel and Organization Marketing Production • Establishing management visions • Formulating management plans and profit plans • Promoting restructuring strategies • Strategies for new businesses/ M&As • Developing new products and services • Developing personnel Systems • Adopting goal management systems • Reorganization • Making organizations more efficient and Active • Improving efficiency in indirect sections • Adopting relationship marketing • Realigning and reinforcing sales systems • Formulating and implementing store opening plans • Making sales representatives more active • Surveying customer satisfaction and markets • Reforming factory management systems • Promoting total cost reduction • Improving production line productivity • MRP/JIT/Lean Six Sigma • Reforming distribution and logistics systems Finance IT ISO-related issues Management Quality • Reforming profits structures • Improving cash management • Improving cost accounting systems • Developing monthly and consolidated group accounting systems • Support for formulating plans to utilize information technologies • Support for writing RFPs • Support for writing requirements specifications • Support for writing RFPs based on requirements specifications • Support for evaluating operations • Obtaining ISO 9001 and 14001 certification • Training (would-be) internal auditors • Compliance audits • Support for solidifying the basis of business processes through “5S activities,¨ work process analyses. • Support for internal assessments • Support for assessment cycles • Support for setting up projects to improve management quality • Reforming management from the viewpoint of management quality Environment Additional Capabilities Mngmt. Consulting Softwares & Tools Industries • Formulating environmental strategies • Compiling environmental report • Adopting environmental accounting • Developing systems for environmental education • Various researches and studies • Corporate finance • Startups, turnarounds, setting up • New business development • Product analysis & development • New investment developments • Risk and strategy planning direction • Metric-based management • Saint, SAP R/3, Baan, PeopleSoft • JD Edwards, Oracle, Profit Plus • Adapta Pro. • CRM, QMS, JIT, SMED, TPM,MRP • PLM, SCM, SDLC,CBM • Microsoft Office Professional 2003-2011: Excel, Power Point, Word. • Six Sigma tenets, Lean Manufacturing strategies • KPIs and metric-based management • SWOT Analysis, TCO, MCRS, SaaS • Gas/oil and Energy • Utilities & chemicals • Steel mill, mining, Iron and Steel • Retail, industrial goods, textile • Construction, petrochemical,automotive • Pulp & paper, consumer product • Manufacturing, foods and beverages • High tech, telecommunications, fmcg • Supply chain, distribution and Transportation • Pharmaceuticals, aerospace and defense
  • 3. Examples of Recent and Current Projects Client Case Studies Management Consulting Corporate Turnaround System Design/Implementation Strategic Planning • Situation: After private equity firm acquired $570MM food processing manufacturer, they hired Fadiven to analyze the business, identify cost savings opportunities, and lead the company through implementation to realization of savings. • Hindrance: Nine consecutive years of company losses at 120+ year old unionized company with heavily ingrained culture of entitlement, a lack of customer / market awareness, and a disdain for change. • Actions: Led team of 12 consultants on-site for 15 months, focused on cost savings / process improvement efforts in energy consumption, maintenance effectiveness, manufacturing output, labor efficiency, and management reporting. Built an energy consumption model based on 25 variables. Analyzed maintenance work orders, cleansed the data, updated man-hour (time) estimates, established priorities, and realigned manning to the work. Analyzed production records to determine the circumstances when output was at its highest and performed root cause analysis to determine issues leading to lower output. Developed over 250 key performance indicators to measure the effectiveness of all departments and then target rates were established to provide consistent direction to the 750 employees across the company. • Results: Returned Company to profitability in first full year on-site, exceeding $15 MM cost savings target by 10%. Delivered client savings in excess of a 4-to-1 return on investment. • Situation: Private equity firm acquired $350MM global printing and packaging division from international conglomerate. As part of the divestiture agreements, the newly created company had 12 months to migrate from corporate hardware and software systems. Upon finalizing the acquisition, the first 6 months were spent analyzing sales and operations, building a plan to restructure the business, implementing all requisite HR processes, and hiring a new senior leadership team. Once the direction of the business was established, I led the effort to analyze enterprise resource planning (ERP) requirements. • Hindrance: Much of the business was unprofitable at the time of acquisition, assets needed to be sold off and plants closed, personnel turnover was high due to the perceived risk of closure, and sales were in decline • Actions: Fadiven led the development of ERP system requirements, system selection process, final negotiations, and the conversion from SAP to EFI Radius. After two months of due diligence, we had only 4 months left before we had to "go live" and comply with all legal obligations associated with the divestiture. Ran the project from beginning to end, partnered with the technical lead on an outsourced hardware solution, and directed all functional leads on system configuration, data conversion, and personnel training • Results: New ERP system went live on time and on budget within these 4 months (a typical conversion can last up to 18 months). • Situation: automotive manufacturing company had new leadership team, post acquisition, with nine consecutive years of losses. • Hindrance: Seven different bargaining units (unions) within the hourly labor force. Significant financial losses limited the availability of capital for investment in technology, so work redesign and restructuring were the only options to streamline processes. Lack of detailed job descriptions, no job grading system in place. • Actions: Led the 7-person client leadership team through multiple off-site meetings to complete SWOT analyses. Facilitated the discussions and introduced industry benchmark data to spark the brainstorming and help define current state. Conducted gap analyses based on newly defined strategies and profitability targets, identified an opportunity to reduce headcount, developed plan to reorganize supervisory positions for an improved span of control, and negotiated with Unions • Results: Corporate restructuring and union negotiations removed more than $4MM of labor costs
  • 4. Strategic Sourcing Logistics Management Continuous Improvement • Situation: Acting VP of Supply Chain for $270MM pulp and paper manufacturer leading the Strategic Sourcing function. The department had no clear understanding of contract management, no active spend analysis program existed. • Hindrance: Company did not centrally manage their spend, with multiple functions throughout the operation having spend authority. Singular focus of small procurement team was to create purchase orders. Organization was untrained on the benefits and requirements of strategic sourcing. Data was inconsistently input into multiple databases and no analyses were in place. • Actions: Conducted spend analysis on $250MM of expenses. Created a repeatable set of processes, tools, and data management guidelines for the analysis to be sustainable and trained the company's top 40 associates on strategic sourcing. Identified 12 contracts that had lapsed and an exceptional lack of sourcing leverage (too many suppliers providing similar commodity chemicals). Partnered with technical / R&D team to determine optimal combination of chemicals and suppliers. Led team to negotiate multi-year purchase agreements • Results: New purchase agreements saved more than $10MM annually and created mutually beneficial partnerships with world-class suppliers, including the provision to provide on-going technical analysis and support of new product development, cost efficient operations, and an environmentally sustainable footprint • Situation: Sold follow-on consulting business to consumer products manufacturer to develop a structured transportation bidding process where none had existed previously (annual transportation spend of $20MM). National carriers were specifically excluded and limited ability to leverage spend (using 40+ carriers) • Hindrance: Very manual process to tender more than 100 loads each day under a single set of rates per lane that did not take different carrier density or capacity into account. No tools / technology available and very poor quality of data to make decisions. A small insourced fleet was used in addition to the 100 contract loads per day, with manual driver logs and little management oversight. • Actions: Designed and implemented client's first ever transportation analysis and bid process. Manually cleansed data in order to make informed decisions on requirements. Pre-qualified additional carriers to include in the process. Determined the client's small insourced fleet was inadequate to provide required service and exposed the company to unnecessary risk. Designed a regional, dedicated fleet and led all negotiations with third party carriers. Signed multi-year service deals, with a comprehensive scorecard to measure performance. • Results: Secured a 10% reduction in total freight costs, equating to $2MM annually, and moved payment terms from net 7 days to net 30 days, improving cash flow . With the regional dedicated fleet in place, this secured capacity in a tightening market and enabled on time deliveries to improve from 96% to more than 99%. • Situation: In addition to managing a $125MM business line in the Consumer Product Division for a $2.5B French professional services firm, tasked by the CEO to assume responsibility for a global productivity initiative required to deliver $2MM in annual cost savings. • Hindrance: Global productivity initiative was started 2 years prior with very little results. Management of the project had changed hands two prior times and there was no project plan or roadmap to work from ($2MM cost saving goal was provided as a "top down" target). Cultural challenges across the 24 countries involved. The company had grown through acquisition with no enforced standardization of local processes. Organization had no training in Six Sigma or other continuous improvement techniques. • Actions: Change agent for global continuous improvement initiative across all 40 Divisional testing laboratories in 24 countries. Started with an assessment of historical records, interviewed operations staff from all 40 locations, solicited a list of best practice ideas, appointed project team members, built a collaborative list of priorities, and then documented all in a project plan. Over the course of the next 12 months, best practices were tested, confirmed, and implemented in specific test procedures, general lab operations, customer interface, and data management / report writing processes. • Results: Streamlined operations allowed us to reduce staff by 50 people globally, equating to 5% of our labor costs or $2MM.
  • 5. Supply Chain Cost Reduction Sales & Operations Planning Fadiven Helps Revitalize Mature Footwear and Apparel Brand • Situation: A leading North American concrete and aggregate supplier sought assistance in optimizing U.S. logistics, given recent changes to demand levels. The focus was on reducing the procurement, logistics and overhead costs for their cement business. • Hindrance: Fadiven Consulting was tasked with finding 6% savings from the existing cost base. • Actions: The team undertook a comprehensive review of costs and prioritized focus areas based on their analysis of data and management input. Primary sources of savings related from reducing terminal operating costs, changing the seasonality of terminal sourcing and a holistic approach to redesigning the network in one region. Fadiven also identified the drivers of increasing costs and determined appropriate organizational changes and improved cost controls to lock in savings. • Results: Fadiven identified a number of key operational and organizational changes, which generated more than 10% savings in targeted costs. The client implemented nearly all of Fadiven’s recommendations immediately into the next year’s budget • Situation: Led Production planning function of a pharmaceutical manufacturer. No integrated planning process, no item level sales forecasting, and multiple versions of plans. • Hindrance: Company was privately held for all 100+ years of its existence prior to acquisition by private equity firm, they were led by their last CEO for 35 years in a very top down manner, low turnover provided little insight to different methods or procedures, demand for accountability was relatively non-existent, no tools / technology available to build an integrated platform. • Actions: Introduced Sales & Operations Planning (S&OP) concepts, developed and installed processes and tools covering sales forecasting, production planning, inventory management, financial reconciliations, transportation planning, and warehouse planning; trained staff on all related tools. Worked with IT to define a migration path from MS Excel based models to a more stable, scalable platform. • Results: Immediately reduced work-in-process inventories, and slow moving & obsolete finished goods inventories by 25% or $2MM. Created "one version of the truth" and eliminated widespread contradictory plans. Increased manufacturing efficiencies 5% due to improved production scheduling routines. Improved space planning and material flow through warehouses, and the enhanced visibility to future transportation requirements enabled the use of lower cost providers • Situation: Fadiven Consulting’s client, a global footwear and apparel company, needed to better understand its consumer: the different segments that comprised the addressable market, their purchase behavior, why they bought particular brands, and their share of wallet. • Hindrance: Strategically, the client needed to determine how much of a brand’s growth story was being driven by a temporary fashion fad versus a true connection with customers. And ultimately, was there further room for the brand to grow with existing or new customers, or had the brand’s market share already been maximized. • Actions: Using a sophisticated on-line research tool, the Fadiven team developed a detailed customer segmentation model for the brand based on demographic, attitudinal and behavioral attributes. Using this model, Fadiven determined each segment’s relative size, behaviors, and preferences. Most importantly, the team also examined each segment’s affinity for the company’s brand and quantified the likelihood of future growth. The analysis spanned nine countries around the world. The Fadiven team recommended that the company make a number of significant changes in their strategic priorities, including: - Targeting an under-served customer segment - Repositioning the brand messaging - Carefully managing the brand extension ideas • Results: Based on Fadiven research, the company modified its long-term strategy for its brand, and is focusing on a portfolio of customer segments to achieve its growth targets. Furthermore, Fadiven’s proprietary segmentation methodology helped to validate major strategic initiatives such as its retail store strategies and new apparel lines
  • 6. EBITDA Improvement Program for Global Oilfield Services, Equipment Fabrication, and Engineering, Procurement, and Construction Company Steel Manufacturer : Delivering Success from Raw Materials to Finished Goods Through Total Cost of Ownership Mining Company : Maintenance on the move Raising truck availability, driving significant production gain with cost savings • Situation: A $2-billion-per-year global oilfield services company with a broad portfolio of both products and services—formed through a series of mergers and acquisitions and experiencing significantly deteriorating performance in recent years. • Hindrance: The client requested a specific action plan that would identify where the company made money and what was needed to improve performance. • Actions: An eight-week project was launched to understand company profitability and improvement opportunity. The project team: - Produced a detailed product and customer profitability analysis across regions to identify performance issues - Performed specific deep dives into problem profitability areas to pinpoint opportunities for business development project control cost reductions, pricing improvements, portfolio rationalization, and process improvement within the company - Worked closely with company management to jointly develop a comprehensive set of improvement recommendations - Developed a plan to pursue $120 million to $160 million of overall annualized EBITDA improvement • Results: The Company executed on immediate selling, general, and administrative reduction targets and began realizing more than $20 million of annualized savings. Specific product line and customer pricing improvement opportunities were quickly taken advantage of, resulting in an additional $25 million of annualized improvement. Supply chain and shop floor productivity improvements were set in motion with a target EBITDA improvement of over $70 million annually. Several broad business restructuring initiatives were kicked off, including the exiting of negative EBITDA businesses in certain geographies to achieve an additional $25 million of improvement. • Situation: Its ambition is to become a high quality, low cost producer, but it had not fully achieved this despite its strong technical capabilities and recent investment in a new service centre. • Hindrance: The primary objective of the client engagement was to help them become a high quality, low cost producer through TCO and a ‘can do’ mentality • Actions: The Change Management program was designed to increase profitability by rationalizing supply channels, redesigning the end to end supply chain process and increasing product standardization and quality. It had an holistic focus and included 4 workstreams : Supply Chain Management, Sales, an effective MCRS and a Total Cost of Ownership (TCO) model to enable the client to balance customer satisfaction with optimized cash flow. Fadiven Consulting designed a sophisticated TCO model that included every component of total cost, from procurement of raw materials to processing and, as part of a comprehensive MCRS to drive compliance and generate savings installed and measured relevant KPIs at various levels. A streamlined purchasing process also supported Continuous Improvement by driving supplier OTIF and quality and reducing inventory. In turn, the new S&OP procedures impacted customer satisfaction by increasing OTIF and quality • Results: Management compliant operational KPIs were fully installed, short interval controls were implemented across different functions and a performance management system and a ‘can do’ attitude was fully embedded in the team. Within 3 months of TCO installation, the application had saved $141k on purchase orders for 1 month ahead. Annualized savings of $1.15m have been achieved, inventory write offs reduced by $3m and inventory levels by an average 5 days on hand. • Situation: The client launched the Mobile Maintenance Excellence Initiative (MMEI) in partnership with Fadiven Consulting, Truck manufacturer and the dealer. The goal of the program was an ambitious double-digit increase in truck availability. • Hindrance: The shovel-and-truck operation at client’s mine runs 24/7, 365 days a year. High truck availability is a key to achieving production at or near the mine’s design capacity of 35,000 MTs of material per day • Actions: The client invited the truck manufacturer and the local dealer to participate in MMEI. The dealer supplies the client with heavy equipment as well as mechanics to perform on site maintenance and repair. About 200 Dealer employees work at mine alongside the roughly 1300 employed there by Client. MMEI team members from Client , Dealer and Truck manufacturer gathered weekly with Fadiven Consulting to shape the improvement initiative; clearly define and document the improved processes and the respective roles and responsibilities for Dealer and Client personnel; review project progress and assign new action items to remove barriers and move MMEI forward. Once the Maintenance process was redesigned, Fadiven Consulting worked with the MMEI team to customize the management control and reporting system (MCRS). Today their MCRS drives timely, coordinated decision making and ensures that people at each level of authority have ready access to critical data as well as the power to influence the results for which they are accountable. • Results: Truck availability increased to 83% and sustained at that level, improving the mine’s production potential. Also, operating costs were trimmed more than $30M. Mean time between truck stoppages increased from 42 to 72 hours. Preventive Maintenance completion rate improved from 52% to 100%.
  • 7. Product Portfolio Optimization for a Plastic Containers Manufacturer Removing risk and waste by modernizing legacy finance operations Blueprint for Due Diligence on a Major Specialty Building Products Materials Company • Situation: The client is a leading U.S. manufacturer of plastic containers. The client has grown in recent years, resulting in a product portfolio that consisted of more than 20,000 SKUs produced in two plants. Despite historical efforts to reduce costs, the client had not been able to earn its cost of capital. Retail distribution pressures, industry over-supply and varied weather seasons all contributed to underperformance. • Hindrance: The client sought to implement a cost reduction plan to ensure that it earned its cost of capital by reducing manufacturing overhead and indirect plant costs through simplifying its product line and rationalizing its SKUs. • Actions: Fadiven Consulting developed a costing methodology to allocate plant overhead in an effort to accurately reflect the “true” cost of each SKU the client produced. Subsequently, Fadiven performed a detailed analysis of the client’s SKUs, product molds and plants to create a performance fact base. We leveraged the fact base to determine a list of initial opportunities for the client to consider for SKU rationalization and product portfolio improvements. We estimated the financial benefits and costs of specific recommendations for the client including headcount, inventory and capacity implications • Results: Fadiven identified specific actions that could allow the client to achieve more than two times the targeted profitability improvement. Significant production capacity was freed up and excess inventory was released. • Situation: A global energy company with operations in more than 100 countries was suffering growing pains as it attempted a number of acquisitions and a historical focus on decentralized operations. The lack of integration resulted in a business and technology infrastructure that hadn’t kept pace with the growth of the company. It lacked standardized, automated processes, was understaffed, and was under significant compliance pressure. • Hindrance: An overhaul of its Finance capability as well as strategies for improving controls and the effective tax rate were required. • Actions: Our cross-functional team, led by Accounting, Tax, Treasury, and Finance, was able to identify a number of opportunities in the tax area that were directly related to issues with the underlying accounting. We set out to help create an integrated solution to reduce risk and simplify the intercompany loans process, creating a standard template and process to recalculate 450 intercompany loans based on their unique attributes. Next we commissioned the development of an Intercompany Database, using SQL with a Web front end to become the loans sub-ledger, accessible to more than 200 users worldwide. We helped create a standard template for the loan schedules corrected historical data, and helped develop core management reports and a dashboard that provides insight for decision making and preventive controls to maintain quality. • Results: Our efforts to help simplify, standardize, and automate the client’s finance operations have paid off. Accounting has sped up the generation of its interest accrual reports from two weeks to five minutes, while Treasury has decreased its loan file processing time by more than 80 percent while simultaneously eliminating the earlier errors in the loan schedules. Global visibility to the database promotes transparency, enables reconciliation to G/L, and creates an audit trail, and Tax is able to optimize its tax planning now that it knows it is working with accurate information. • Situation: A private equity (PE) company requested a commercial due diligence of a major specialty building products materials company • Hindrance: Fadiven Consulting’s key tasks included appraising the fundamental attractiveness and risks of the manufacturer as a potential investment for the PE client. • Actions: Fadiven assessed each of the company’s divisions based on market sizing analysis and forecasts, distribution channel trends, customer assessment, and competitive positioning. Fadiven also developed revenue forecasts for scenarios that considered variations in the construction industry recovery and potential market share loss for two of the company divisions, due to the highly competitive nature of the markets they serve. The Fadiven team performed interviews with dealers, distributors, retailers, contractors, and competitors to gain a wide perspective on the market. The team also developed a survey to quantify identified market trends and gain insight from its partners and customers. For one of the company’s divisions, Fadiven’s market analysis revealed that one of the company’s vertical markets’ growth would depend largely on new housing starts recovery. • Results: Fadiven provided the PE client with a comprehensive understanding of how the target company was positioned in the market, along with supporting evidence to move forward with the investment.
  • 8. Talent management business process transformation Portfolio Strategy and Governance Structure for a EA Shipper – Part I Portfolio Strategy and Governance Structure for a EA Shipper – Part II • Situation: A large oil and natural gas exploration and production company was growing domestically and overseas, employing over 5,000 people globally and supporting an increasingly diverse workforce. To improve its business strategy execution, leadership wanted to put more emphasis on talent development across the enterprise. • Hindrance: To do so it needed to enhance delivery of talent management services across diverse geographic locations and streamline its process efficiency and effectiveness. • Actions: The Company partnered with Fadiven to implement SuccessFactors’ integrated SAP Human Capital Management (HCM) SaaS solution in a hybrid architecture that could leverage its existing investment in SAP HCM. The capabilities of SuccessFactors made the solution a good fit for the company’s field-based workforce. • Results: The client now has a globally consistent talent management process and technology platform to deliver its programs. There’s now a clearer understanding of the value that HR provides and talent management processes are more efficient and effective. For instance, a previously labor-intensive annual compensation process has been reduced by 50 percent. Other wins include eliminating the freeze on the client’s SAP application during the two-and-a-half-month compensation process, and the ability to look at talent across domestic and international locations in a consistent and standardized way. • Situation: The SCEA-listed subsidiary of a EA holding group specializing in ocean shipping was struggling with a lack of strategic focus. In the past, the company had flitted from one industry to another and only recently had begun to home in on shipping services. While it was awash in cash due to a recent spinoff, it urgently needed to set its portfolio strategy and future direction to ensure that its funds were invested wisely. • Hindrance: It brought in Fadiven to help it better understand the shipping industry and what service offerings were likely to be most successful. • Actions: We started by investigating customer needs throughout the entire shipping life cycle to get a clear sense of the service requirements of shipping companies at each stage. For example, when a company first acquires a ship it needs ship brokerage services such as chartering and insurance. Throughout the life of the ship, the owner will need repair services and spare parts. At the end of a ship’s life the owner requires demolition services. - After mapping out each service, we analyzed market attractiveness and barriers to entry. This allowed us to sit down with the client and determine which services would be clear wins (highly attractive, low barriers to entry), which it should stay away from or outsource (low attractiveness, high barriers to entry), and which it might want to invest in (highly attractive but with high barriers to entry). - Next we defined the core competencies needed to compete in the different segments and assessed the client’s internal capabilities in each area. We also benchmarked the world's leading shipping service companies so that we could measure our client against them. - In the last phase of the project we evaluated EA macro trends and identified government-supported sectors to generate a list of potential investment opportunities. Finally, we estimated the investment needed in each area over the next five years and recommended a potential capital structure for the investment. • Results: We were able to identify a number of areas where the client could improve its performance by leveraging existing networks. For example, the company operated in several shipping service segments, and although it might face the same customer multiple times, each of its businesses competed in the market independently. Cross-selling was clearly an untapped opportunity. Furthermore, the client was not leveraging the parent company’s network or those of the parent’s subsidiaries—another opportunity. - Based on our internal and external assessment, we recommended a future strategic positioning that emphasized the client’s global network and ability to deliver “one-stop service.” As a counter to the economic fluctuations of the shipping industry, we also proposed that the client launch an investment arm that would supplement its core shipping services. - To ensure the successful implementation of the proposed strategy, we recommended that corporate headquarters shift to a more controlled positioning in which it would provide more centralized strategic and operational support.
  • 9. Infrastructure Investment Analysis for U.S. State A World-Class Supply Chain for a Petrochemicals Company - Part I A World-Class Supply Chain for a Petrochemicals Company – Part II • Situation: A U.S. state was receiving a barrage of funding requests and proposals to build a new infrastructure for a container shipping port. Employees evaluating the proposals realized that they needed better tools and information to select projects that would deliver the most value. • Hindrance: Those seeking support argued that changing industry dynamics—rising fuel prices, port congestion, and expansion of the Panama Canal—meant there would be sufficient additional traffic in this location to support a larger facility. Although the arguments were persuasive, the state was concerned about losing current business and market share. They contacted Fadiven to perform an independent analysis to find out if investment in the new facility would lead to new jobs and more tax revenues. • Actions: Analyzing an infrastructure investment requires looking beyond the specifics of the immediate market. In this case, our analysis showed that container traffic is driven by end-to-end supply chain costs—and thus a port’s geographic advantage is paramount. We conducted interviews with 20 top North American ports, six of the top 10 shipping lines, state employees, and other key stakeholders. We developed a container demand forecasting model that addressed traffic-flow trends and constraints. We created a Port Attractiveness Framework that ranked the ability of ports to draw demand from competitors. Finally, we constructed an end-to-end supply chain cost model that incorporated all modes of delivery, including sea, rail, and trucking. • Results: Our 20-year supply-and-demand forecast provided the overall context that the evaluation team needed to manage funding requests. The forecast indicated the degree to which the container industry had been hurt by the recession and concluded that it would not return to pre-recession levels for five to eight years. Meanwhile, ports were competing with one another for limited, hard-to-motivate demand. -The client used our detailed economic model to assess the infrastructure proposals at various levels of potential demand. Because the model outlined longer-term costs and benefits—specifically in the form of jobs and tax revenues—government employees were able to make more informed decisions regarding support for each proposal. • Situation: In the petrochemicals industry, access to low cost raw materials (or feedstock) is an important competitive advantage. Since the mid-2000s most low cost feedstock has been located in the Middle East. For companies that set up production there, the most significant challenge is physically moving product to end users across the globe in a seamless manner. • Hindrance: A large Middle East producer of chemicals and related materials was embarking on the largest investment in its history: construction of several assets within the region and the acquisition of assets in several new regions around the world. The company aimed to triple its capacity within 12 years. But it was already experiencing some problems. It had grown to the point where it was becoming difficult to support new production capacity, which affected its ability to meet customer demands. Most troubling, lead times and the reliability of delivery commitments were well below customer expectations-and below competitors'. Developing a world-class supply chain was the linchpin in the company's strategy to connect assets in the Middle East to end markets around the world. Seeking a partner that had supply chain expertise, an understanding of end markets, and the ability to drive substantial change, the management team engaged Fadiven. Our task was to redesign the company's multiple sourcing and delivery mechanisms into a single, integrated supply chain that would reduce costs, improve customer service, and meet the unique requirements of each of its five business units. • Actions: Our mission extended beyond making recommendations for incremental changes. Together with the company's leadership, we were building a system designed to be flexible enough to adapt as global markets evolved. To do that we needed a vision of what the future of the petrochemicals industry might look like. That meant taking a holistic look at the entire ecosystem through an in-depth analysis of demand characteristics, customers, market preferences, and the regional competitive landscape. Our team began by conducting a detailed assessment of the supply chain within each strategic business unit. The goal was to create a step change in how the company operated across six areas: - Customer Service - Planning and operating processes - Supply chain network and logistics - Organizational structure - IT enablement - Performance measurement As part of the assessment, we benchmarked the company's performance in each area against current competitors and future customer requirements, discovering that major improvements were needed in all areas. One of the first insights for company executives was the degree to which a tightly integrated planning discipline can drive reliability and customer value. For example, we recommended shifting the planning objective from asset utilization to global profit optimization, extending the three-month planning horizon to a full 18 mos. We also recommended dynamic scheduling rather than the current monthly recalibration, which was preventing the company from quickly addressing changing customer requirements. A detailed logistics network and inventory model allowed the company to evaluate different scenarios that would minimize intra-unit freight costs and optimize inventory levels at each stocking point. The model also supported our redesign of the company's port facilities to improve efficiency and accommodate its growth plans. After assessing the value of routes and hubs, we recommended that the company selectively expand existing terminals into hubs and add additional hubs in high-value areas. • Results: At the time of implementation, the company was poised to realize billions of dollars in additional value and was well-positioned to meet its goal of tripling capacity over 12 years. Halfway through this 12-year journey, the company has successfully integrated several new assets globally, and has already doubled its sales and increased profitability by nearly 50 percent.
  • 10. Heavy/Off-Highway Equipment Manufacturer EBIT IMPROVEMENT - Part I Heavy/Off-Highway Equipment Manufacturer EBIT IMPROVEMENT - Part II Global provider of financial technology Uniting a fragmented organization • Situation: Global manufacturer of heavy and off-highway equipment faced multiple challenges to profitable growth. • Hindrance: Cyclicality in the business was not well managed, and regions, brands, and product lines were operating autonomously, thereby creating wildly variable performance and profitability. Additionally, regional performance was out of balance, with one region generating all the profits globally and other regions either performing only marginally or losing money consistently. Internal margin improvement programs had not generated meaningful results. • Actions: Team was organized to identify and execute step function margin improvement projects with clear goals around impact, speed, self-funding of project, accountability, and sustainability. Key actions taken: - Worked with company to address key issues in the loss making region, including original equipment pricing, aftermarket and spare parts, transportation, sales and marketing processes, and organization structure; addressed specific product lines with low return on invested capital (ROIC) - Migrated successful products between regions to start building both a global approach and the sharing of best practices. - As economic cycle turned negative, rolled out global purchasing initiative to impact more than $3 billion in spending. -Worked on selected market share strategies and technical product reductions to improve market approach. • Results: Overall program delivered $235 million of annualized benefits to earnings before interest and taxes. Selected details included: - Purchasing: Targeted cost reductions combined with capability improvements and organization redesign: $75 million - Pricing: Rolled out new process that would better track market positioning and enable more-proactive price adjustments: $46 million - Global logistics: Reviewed mode selection, carrier selection, and distribution network design and optimization: $44 million - Aftermarket and parts: Volume growth through product changes and customer targeting, pricing and cost reduction actions, and inventory reductions and management: $31 million - Sales and marketing: Evaluated sales organization, including skills assessment and work processes; increased sales targets: $10 million - Product ROIC turnaround: Developed profit and loss for individual product lines with low ROIC; went through turnaround process, treating each line like a small business: $7 million • Situation: How a global provider of financial technology transformed its finance, contracts, project management, procurement, and HR processes with an enterprise-wide Oracle implementation. • Hindrance: A global financial software and services company had grown through acquisitions, amassing a large number of disparate legacy systems that were unable to communicate with one another. In order to achieve organization-wide visibility and speed up its finance, contracts, project management, and HR processes, it needed to move to a single enterprise platform. When a private equity firm purchased the company, its need for organization-wide visibility and reporting tools intensified. • Actions: The implementation touched most of the company’s core processes, including customer service support, financial planning and reporting, procure to pay, hire to retire, contract management, sales forecasting, and product development. Fadiven helped map each process, redesigning it from the ground up to standardize and adapt it to the Oracle system. We redesigned the global chart of accounts to provide robust reporting capabilities, and set up the system to consolidate financial results and execute a faster monthly close. • Results: The new platform provides visibility through the company's operations and improves compliance. Time spent on the monthly close has shrunk from weeks to a matter of days, with a significant increase in accuracy. Easy-to-use web-based dashboards and analytical tools promote rapid, informed decision-making. Finally, with its streamlined and scalable global business processes, the company is well- positioned for future growth and rapid integration of new acquisitions.
  • 11. Move to Common Manufacturing Processes for Plants at a North American Car Manufacturer –P-I Move to Common Manufacturing Processes for Plants at a North American Car Manufacturer – P-II Automaker Launches Global Sales Program • Situation: A leading automotive original equipment manufacturer (OEM) with multiple assembly, transmission, and engine plants in North America had long allowed individual plants to develop their own processes. But as competition increased, the company needed all plants driving in the same direction. • Hindrance: In the past, allowing individual plants to develop their own processes was not a problem, but as competition increased, this OEM needed more flexible plants that could produce multiple products with few or no tooling changes. This would be a major shift for product development engineers who could focus on product rather than process, and for process R&D that received minimal funding. Process engineers relied more on equipment suppliers for advice than on their peers in other plants, and new technology was typically introduced at the plant level without strategic coordination. Measuring processes and operating attributes was the exception rather than the rule for this OEM. However, ultimately it became clear that inconsistency in manufacturing processes across plants was having a negative impact on cost, quality, and flexibility. The OEM needed a way to determine process requirements, identify preferred processes, measure outcomes, and increase intra-plant communication. Fadiven’s Bill of Process methodology addressed all of these issues. • Actions: A Bill of Process approach describes and defines how products are to be manufactured, from tooling and plant layout to operator instructions. Using our five-step methodology and working with a cross-functional, cross plant team, we created common processes across all of the plants’ assembly and machining operations as follows: - Process scope and metrics. Defined the start and end of each process, defined key metrics and drivers, and developed data-collection templates for plant managers to use to measure performance. - Current-state analysis. Collected labor times for all plants and identified architecture requirements for each process; compared and documented performance at each plant, noting any process-related quality and throughput issues. - Product and process requirements. Defined current and future product requirements and benchmarked manufacturing processes across plants as an input to future preferred processes. - Preferred process design. Conducted best-in-company evaluation across all plants and developed preferred process designs. Documented rationale to support each process and performed financial analyses for recommendations requiring plant investment. - Implementation plan. Developed implementation plan and timeline based on tooling and facility constraints and the current product cycle. Projected savings based on implementation of each preferred process. • Results: The plant teams have completed 19 projects, identifying $130 million in annual savings and positioning the company for longer-term success. The core manufacturing group used the results to improve the Bill of Materials (list of all parts required for a completed product) to address the needs of manufacturing • Situation: The battle for growth among original equipment manufacturers (OEMs) is a staple of the global automotive industry. One automaker decided to take the game to the next level—redesigning its global face to become more customer focused. • Hindrance: After years of organic and M&A-based growth, the OEM knew that it needed to create more cohesion across its far-flung group of business units and brands. Executives wanted to develop a coordinated market approach with its highly independent brands, and planned to launch several sales initiatives across all brands to further boost sales. Leadership asked Fadiven to review and align the initiatives, and to set-up and run the coordination office for the global rollout. • Actions: The global rollout had two main interconnected pillars: review the sales transformation initiatives and to establish a coordination office that would oversee the rollout. First, we evaluated all sales initiatives, identifying the major milestones, benefits, and business case results, which were included in standard contracts. These contracts helped shore up commitment for the effort and became the basis for a global rollout across all markets. In setting up the coordination office, we identified the relevant stakeholders (across markets, brands, headquarters, and support functions), defining clear roles and responsibilities for each. We set up lean reporting structures and steering boards to accelerate decision making and ensure a speedy rollout. • Results: Once the coordination office was ready to go, we recruited and trained client staff to run it independently. Collectively, we were able to establish common standards in the sales IT systems across the various brands, align everyone around a common goal, and speed up the rollout of the global initiative. The program was a success—driving improved sales and strengthening the company’s internal structure—and became a key part of the client’s growth strategy.
  • 12. New Maintenance Strategy for Steel Producer Part I New Maintenance Strategy for Steel Producer Part II North American Mining Company Maximizes Performance and Profits • Situation: One of the world's largest integrated steel producers was facing financial losses as a result of a toxic combination of high costs and poor market conditions (low prices and low demand). With shareholder returns significantly below competitors', senior executives knew they needed to get the situation under control quickly and took aim at one of the biggest culprits behind their outsized costs: the maintenance organization. • Hindrance: The Company’s maintenance organization suffered from two main shortcomings: It was both extremely decentralized and highly dependent on contractors for maintenance services. The result was inconsistent maintenance practices and performance and a proliferation of contractors over which the company had little control. Lack of centralization also meant the company was missing opportunities to leverage its buying power with vendors. The executive team asked Fadiven to develop a maintenance strategy and establish maintenance management practices that could be used across the organization. • Actions: We piloted our approach by performing a preliminary assessment of performance at the business unit (BU) comprising the blast furnace, hot mill, and packaging plants. We then quantified the potential increased output and cost reductions that would result if maintenance practices were consistent and managed appropriately. The potential savings were significant. We revamped the maintenance programs of 10 of the company's BUs and developed a strategy for the maintenance organization that would ensure continuous improvement of equipment availability and maintenance costs. We developed a blueprint for the new maintenance organization and a plan for improving the company's contractor management practices, including strengthening accountability for vendor contracts. • Results: Before the project was even completed, the new work practices had improved performance at the pilot BU. Downtime on hot and cold mills was reduced by 30 to 50 percent, resulting in a 2 to 4 percent increase in output. Implementing the strategies across all business units resulted in more efficient and reliable equipment and improved contractor management, resulting in maintenance savings of 12 to 15 percent. • Situation: As global demand for iron ore and other minerals grows, prices are spiraling out of control and the mining sector is running out of high-grade reserves. Increasingly, mining companies are turning to lower grade reserves or those that are more difficult to extract. Co’s. That can improve their OAE have the upper hand and the best shot at maximizing their profits. • Hindrance: This mining firm had acquired a controlling interest in a North American company, which was attractive because it was sitting on significant high-grade reserves. However, its operating costs were too high, primarily the result of weak performance of capital assets, as well as high labor costs and poor productivity. A faster than anticipated global market recovery was also placing significant pressures on its supply chain. In the past, the acquired firm had launched a number of change programs focused on reliability-based maintenance, continuous improvement, and work practice redesign. However, poor implementation had undermined the success of these initiatives. Senior management realized that there were significant opportunities to improve OAE of the acquired company. They called in Fadiven to help design a strategy that addressed the entire value chain-from mine planning to drilling and blasting, rail transportation, customer delivery, and sales and OPS. • Actions: We began with a diagnostic of the acquired company's supply chain, focusing on its strengths and areas of opportunity. We assessed the company's leadership and management practices, and benchmarked its performance against competitors. We also measured OAE for all major capital assets. We assessed the company's current and proposed change Initiatives for alignment with supply chain improvement opportunities and established an implementation framework for realizing the benefits of an extensive reliability-based maintenance strategy. Process Imprv. reco’s focused on increasing equipment availability and usage and moving ore through at higher speeds. Finally, we developed a new sales and operations planning process to integrate planning and scheduling across the supply chain. We also supported the implementation of two major capital investment Prog’s to significantly enhance OAE. • Results: A new management structure helped the company focus on achieving results. And with a disciplined implementation plan, the company reduced its labor force by more than 600 employees over a two- to three-year period, and identified annual operating savings of approximately $100 million.
  • 13. Global Pharmaceutical Giant Redesigns Finance and Procurement - Part I Global Pharmaceutical Giant Redesigns Finance and Procurement - Part II Cutting sales costs without sacrificing service Personal care company • Situation: A leading pharmaceutical company had been growing through acquisitions for a number of years, but the resulting redundancy and complexity in the finance group were taking a toll on efficiency. • Hindrance: Over time, the growing company had acquired many distinct customer segments—including everything from hospitals and pharmacies to animal health providers—and the finance organization was creating separate processes to serve each one. Some of these processes were almost identical, while others were different but could translate easily across customer segments if only finance professionals would share their best practices. To improve service quality for both internal and external customers, the finance group knew it had to first improve how it worked internally and how it interacted with the company’s other support functions. Beyond that, finance leaders wanted to create greater value by providing new services, but they needed help identifying them. So they turned to Fadiven • Actions: Our challenge was fourfold: - Identify and eliminate low-value activities and duplicate processes. - Share best-practice processes across the department. - Identify and evaluate new value-added services. - Recommend an implementation and rollout strategy for each new service. The team first assessed current processes and sub processes, outlining task drivers, volume of tasks, and improvement opportunities. Once we identified the performance gaps and everyone agreed on the internal service levels, we began designing new processes and an organizational model. This phase included developing process maps and documentation, assigning tasks and responsibilities, and creating a detailed transition plan. • Results: The team’s recommendations for streamlining finance processes allowed for a 20 percent reduction in staff, which was quickly implemented with people shifting to other areas to perform higher value activities. In addition, costs fell as more purchases (including buying for the new therapeutic areas) were managed through the company’s procurement function. Today, finance executives credit the streamlined processes for improving the quality of service—not only services provided to their internal customers but also to the company’s external customers, including key hospitals. In fact, customer complaints have dropped significantly. • Situation: PersonalCo has a very successful R$500 million revenue operation in SAC. It is a traditional category leader, competing with 100 SKUs in three market segments. • Hindrance: PersonalCo set ambitious cost reduction targets: over 20% of its sales operating expenses. At the same time, the firm aimed for functional excellence in sales, distribution and customer service. PersonalCo brought Fadiven on board to speed up the capture of potential savings and help ensure a successful implementation. • Actions: Fadiven devised a Sales Functional Excellence Program that focused on the four key dimensions of the sales department: - “Go-to –market” Strategy - Commercial Approach - Sales Processes - Organization and Infrastructure The Sales Functional Excellence Program had three distinct phases: - Phase 1 identified the potential for improvements, and main levers to achieve them - Phase 2 targeted key initiatives to close PERF. Gaps - Phase 3 resulted in a detailed implementation plan. Fadiven identified three primary levers to redeploy the field salesforce that would have a significant impact on costs: - Transfer marginal clients, located in remote areas to distributors. - Eliminate visits to remote branches that don’t require selling activities (usually already served through merchandisers) - Reduce redundancy on store-checks and transfer-order at branches (activities under merchandiser responsibility ) • Results: Relocation of 30 retailers (75% below revenues targets ) - Roughly 100 stores taken out of visit schedule - New visit schedule for sale force Redeploying the field sales force and achieving functional excellence will help PersonalCo reach its cost reduction goals.
  • 14. Food Products Company Develops Recipe to Reach New Consumers Globally - Part I Food Products Company Develops Recipe to Reach New Consumers Globally – Part II Food Products Company Expands Offerings as Centerpiece of New Strategy • Situation: A global Fortune 500 consumer foods products company with a strong core business saw opportunities to expand its presence in several meals & snacks categories. The food products company was broadly under-penetrated in this area and saw that this sector demonstrated attractive growth, and appeared to align with key consumer trends. • Hindrance: Fadiven Consulting was engaged to assess whether the company should enter specific categories internationally, and how it should do so – organically, via partnerships or through acquisition. To fully evaluate these opportunities, Fadiven objectified the financial and organizational implications of the strategy. In addition to North America, Fadiven analyzed additional markets including Brazil, China, Italy and Russia • Actions: The Fadiven team developed a comprehensive view of the targeted meals & snacks categories. Specifically, Fadiven conducted extensive analysis to understand category-level growth rates and margins, market dynamics, key consumer trends and implications, channel and customer requirements, and the competitive landscape. Fadiven also partnered with an internal client team to understand the client organization’s capabilities and the implications on potential new market entry and growth strategies. Fadiven then worked closely with the internal client team to develop a strategic growth plan for specific categories in North America, as well as targeted international markets, and presented the strategy to the senior executive leadership team, including the CEO and COO. Fadiven determined that specific meals & snack categories demonstrated high growth rates and attractive margins. The evaluated categories were also “on-trend” with consumers. The overall recommended strategy was one of “value-added innovation leadership.” A critical strategy component was to focus on categories with the highest level of "value add" – categories characterized by attractive margins and higher levels of innovation, and significant opportunities for competitive differentiation and sustainable growth. Another strategy element was to focus on underpenetrated consumer segments, such as healthy meals for families and kids. Fadiven developed entry strategies for each recommended category defined consumer segments and identified acquisition targets where appropriate. • Results: Fadiven provided two clear sources of value for the client on this case. First, Fadiven developed a holistic and value-creating plan that would provide incremental revenue of $1.5 billion at a significantly improved gross margin, and would result in an incremental $3 of shareholder value per share by 2013. Secondly, Fadiven's collaborative approach during the project served to overcome the internal biases that many business units had against these targeted categories. This new acceptance of the targeted categories would help to reduce integration challenges. • Situation: A regional frozen food products was seeing its sales drop dramatically as competition intensified – taking share at retail outlets and also pressuring the price premium that the company once commanded. Further, the company’s product line was narrow, which concentrated its risk and limited its growth opportunities. • Hindrance: The company selected Fadiven Consulting to assist the management team in establishing a new company vision and developing a strategic plan that would provide a platform for growth, diversify the business and ultimately enhance shareholder value. • Actions: Fadiven first assisted a new management team to develop an updated company vision and values. This required a combination of one-on-one interviews across the organization, workshops with company management, and synthesis into vision and value statements that were branded throughout the company. Developing the strategy was grounded in a comprehensive “fact base” of the company’s internal capabilities and external marketplace realities: market dynamics, consumer behavior and brand perceptions, competitive landscape, and market adjacencies. To do this, the Fadiven team executed an extensive primary and secondary research effort, including consumer surveys, retailer interviews, store reviews, secondary market data synthesis, internal capabilities and cost position diagnosis, and multiple customer and financial analyses. As a result of all the analysis, Fadiven developed a comprehensive five-year strategic plan for the company. • Results: Fadiven re-energized the company by transforming it from a mature business to a dynamic growth-oriented company. The strategy that Fadiven helped create currently serves as the company’s “blueprint” for the future, which is in full-swing implementation. Fadiven has played a key role in implementing many of the recommended initiatives
  • 15. A global manufacturer's reorganization restores high profits – Part I A global manufacturer's reorganization restores high profits - Part II A global manufacturer's reorganization restores high profits – Part III • Situation: This multinational industrial goods company once was known for its high profitability. But IndustrialCo now found itself on the verge of bankruptcy. Fadiven helped turn around the global manufacturer with an organizational redesign that reduced complexity and enabled faster, better decision-making, restoring its reputation as a nimble competitor—with high profits. • Hindrance: IndustrialCo had lost its competitive edge after making several strategic decisions that changed the business. Instead of continuing to enjoy high profits, the company found itself struggling to survive as sales and revenues plummeted. The organization wasn't operating at its full potential. Major acquisitions had never been fully integrated. The company had shifted the focus during the ecommerce bubble from its strength—manufacturing automation and power technologies—to becoming a "knowledge company," diverting funds away from its core and into Internet investments. Other challenges included an inability to easily track costs and profitability at point of sales. Also, unclear roles and responsibilities jeopardized management's ability to make timely, effective decisions. To stave off bankruptcy, IndustrialCo's CEO urgently needed to craft an organizational redesign that provided better accountability and decision-making—with a unified mission. • Actions: IndustrialCo needed to develop an organization that supported its ability to respond to changing market conditions. Fadiven worked with the CEO and senior managers to tackle three major changes: creating a simplified, more transparent organization, providing clear roles and accountability, and fostering companywide cooperation. These changes would lead to faster, better decisions, resulting in stronger sales and reduced costs. To achieve this, we led a three-step organizational review: - Conduct a thorough diagnostic of the organization's strengths and what was holding them back. - Redesign and simplify the structure, while also clarifying decision roles for critical decisions (using our RAPID tool). - Align other elements of the organization, such as processes, measures and incentives to support new ways of working. Based on our evaluation, we recommended to the CEO that IndustrialCo redesign and align five broad areas of the organization to fully support the objectives of its new business model. - Give global business units full profit and loss responsibility so that they work as an integrated business. - Decouple sales and operations—sales can focus on local demand while operations can take advantage of IndustrialCo's global scale. - Make profit and loss margins transparent across the value chain. - Change the way prices are set to better reflect market realities. - Introduce local profit and loss to base decisions on customer demand instead of supply. • Results: In less than five years, IndustrialCo completed a dramatic turnaround, transforming itself from a company near bankruptcy to a market leader. When we started working with IndustrialCo, its value had plunged to just $3 billion. But with a simplified, focused organization able to more effectively make crucial decisions, its valued soared to $75 billion. The company's share price quadrupled in four years, significantly outperforming both the market and competitors. IndustrialCo’s successful transformation also helped retain talented employees. When staffing the company’s new executive team, it relied entirely on internal recruits
  • 16. Project Management O&GCo Deep Conversion Refinery – EPC Part - I O&GCo Deep Conversion Refinery – EPC Part - II O&GCo Deep Conversion Refinery – EPC Part - III • Situation: Fadiven and a joint venture partner provided comprehensive services to O&GCo for it refinery upgrade and modification in U.S. Services included the initial feasibility study through commissioning support. The project was carried out to add flexibility to process heavy sour crudes into cleaner burning fuels for the U.S. market. • Hindrance: O&GCo is one of the largest international oil and gas companies in the world. Its U.S. refinery, with a capacity of 174,000 crude barrels per day, was upgraded to enable processing of heavier sour crude oils. The changes required new process units and modifications to existing units to allow the conversion of deep cuts of heavy products into lighter, more useful transport fuels (thus, “deep conversion”). The modernization comprised six new process units: a Delayed Coker Unit consisting of four coke drums, a Coker Naphtha Hydrotreater, a Cracked Distillate Hydrotreater, Vacuum Distillation Unit, PSA and a Sulfur Block. Also included were two new substations at 230 kV and 69 kV and all the utility and offsite additions and changes needed to support the new process. • Actions: Fadiven performed the initial feasibility study, front-end and detailed engineering, procurement, self perform construction and construction management, and precommissioning and commissioning support. Fadiven built the Coker Naphtha Hydrotreater, Cracked Distillate Hydrotreater and Delayed Coker units with a combination of self-perform (civil, structural, mechanical and piping) and subcontract construction (electrical, instrumentation, painting and insulation). The team reached a total craft staffing level of more than 4,500 and at one point worked more than 5.2 million hours without a lost time incident. Over the course of the project, the team worked in excess of 12 million hours safely. Fadiven personnel were seconded to a O&GCo-led team for management of the construction of the brownfield and sulfur block portions of the project. During their time onsite, Fadiven personnel became a vital part of the community. For example, they volunteered for area cleanup after Hurricane Tsm and took donations for aid organizations at the refinery turnstiles. Some of many recipients of contributions and / or participation from the project team members were the local Retirement Home, the Rescue Mission, Junior Achievement, local welding schools, local College, and the local Energy Museum , and the local Continuing Education Committee. • Results: O&GCo and Fadiven worked as an integrate team to achieve the ambitious goals set for project safety, quality, cost, and schedule. Fadiven drove many cost-saving measures and strategies to achieve success. These included modularization of interconnecting pipe racks, worksharing, and strategic partnerships with contractors and suppliers. Upgrading and modernization added more flexibility to process sour crudes and produce higher-grade fuel products at the U.S. O&GCo refinery.
  • 17. North QMS Sea Petroleum Offshore Drilling and Production Facilities QL Limited FP Offshore Oil Platform, Caribbean islands – Part I QL Limited FP Offshore Oil Platform, Caribbean islands - Part II • Situation: Fadiven and a joint venture partner performed detailed design and engineering work as well as construction management and procurement for drilling and production facilities at an offshore oil operation located off the coast of TWM. The project, for which Fadiven's contribution began in 2003 and was completed in 2007, included offshore platforms at two oil fields as well as miles-long networks of pipes and onshore storage and shipping facilities. • Hindrance: The offshore platforms were to be built in two separate oil fields in the N. QMS Sea seven miles apart There, engineers and construction managers faced the task of building on a seismically active seabed with shaky soil conds, 30-ft waves, and depths of up to 190 ft. Also required were onshore processing and storage facilities, including two 126,000-barrel tanks for crude oil, one natural gas liquids [NGL] sphere, and one tank for liquid sulfur. Fadiven also had to design an adequate mooring system for large tankers and 35 miles of pipeline to carry oil and gas between the drilling and processing platforms and to an onshore processing plant. • Actions: Fadiven designed and managed construction of two offshore drilling platforms and one production platform in the PLQ Field, and a drilling and processing platform in the KLQ Field. At PLQ Field, Fadiven designed two four-pile, 12-slot drilling platforms, and one eight-pile processing platform. At the South KLQ Gas Field, the single combined drilling and processing platform produced 5.6 MMCFD, or millions of cubic feet per day. A 12-inches-in-diameter gas line piped sweet gas from the KLQ Field and sour gas from the PLQ Field to the onshore processing plant. An eight-inch pipeline separately channeled crude oil from PLQ Field after it was separated and dehydrated at the platform there. In addition to the storage tanks originally designed for the project, Fadiven added another 25,000-barrel crude storage tank to address additional collection concerns.. • Results: The project was concluded successfully in 2007. The total operation produced 25,000 barrels a day of crude oil and associated gas at its operating peak, as well as nearly 500 tons of sulfur per day from well effluent of 38 percent hydrogen sulfide. The site was still operational as late as June 2012, with the Client reporting an average gross oil production rate of 1,200 bopd [barrels of oil per day.] • Situation: Fadiven, in consortium with XPM, provided program management, engineering, procurement, construction and installation of the 4,267-ton topsides, for an offshore gas production platform for QL NS & BS, Limited (QL N&B). Located off the northwest coast of this Caribbean island (CI) in 530 feet of water, the FP platform is the largest facility ever built or installed in NS & BS waters. • Hindrance: QL N&B needed additional gas to meet future supply commitments and they committed to deliver a new offshore platform to provide this gas in 2008. The preliminary design was performed by Fadiven’s office in CI, and the resulting platform was over twice the size of anything built in CI to date. With a keen desire to maximize local content, and insufficient time to competitively bid the engineering and fabrication of the facility, and still have it completed in 2008, a new QL N&B project team was assembled to meet these challenges and execute a successful project. • Actions: To solve the QL N&B project execution and schedule concerns, Fadiven and XPM formed a Consortium that would continue immediately with detailed engineering and procurement activities to preserve the schedule and eliminate the time it would take to create a bid package, and competitively bid and award a typical lump sum EPIC contract based on very preliminary design documents. To give QL N&B the proper assurance that they would still be paying a competitive price without bidding the lump sum contract, Fadiven and XPM submitted an Open Book Estimate for the EPIC project, whereby pricing could be reviewed in detail prior to contract award. The timing of this Open Book Estimate, after additional engineering was performed and actual equipment quotes were received, enabled the contract price to be far more accurate and contain fewer contingencies for unknowns. To maximize local content Fadiven subcontracted the fabrication of the topsides to FO, a local fabricator that had built platforms before, but none the size of the FP platform. Fadiven’s management of this subcontract interjected the strong Fadiven culture of safety and quality into a growing, but relatively young fabrication yard. Most importantly, this Fadiven-led Consortium gave QL N&B the best chance possible to meet their very aggressive schedule goals. • Results: The FP platform was successfully engineered and procured by the Fadiven-led Consortium, and fabricated and installed in November 2008. The platform received its first gas in December 2008 as originally promised by QL N&B. Without the innovative contracting strategy adopted by Fadiven, and the dedication and determination of the experienced professionals brought to QL N&B through the Consortium, this significant achievement could not have been realized. The FP project received Fadiven's PH Project Excellence Award in 2008. The award is based on outstanding performance in several areas; including safety, value creation, and Client and community relations.
  • 18. XPCO SGI/SGP Onshore Oil and Gas Projects Part - I XPCO SGI/SGP Onshore Oil and Gas Projects Part - II XPCO SGI/SGP Onshore Oil and Gas Projects Part - III • Situation: Fadiven and its joint venture partner provided engineering, procurement, and construction management services to XPCO for the Asset Development Project, one of the largest and most complex projects undertaken in the oil & gas industry. The Asset Development Project was a combination of the Sour Gas Injection (SGI) and the Second Generation Plant (SGP) Projects at the giant TS and M Fields, located on the northeastern shore of the FR Sea. The Fadiven JV also provided engineering, procurement and construction management services for a power plant at the XPCO project site. The Fadiven JV was recently awarded another contract by XPCO for its Wellhead Pressure Management Project in SLM. The Fadiven-led JV has been providing services to XPCO for the past 10 years, and this new project will create many opportunities for further development of the SLM oil and gas infrastructure, workforce and local companies. The JV will train and enhance the skills of the local workforce with a high priority on safety, creating a long-term sustainable workforce in the region. • Hindrance: XPCO (a joint venture between PCO1,PCO2, PCO3, and PCO4) undertook the $6.9 billion world-class expansion of its oil and gas production facilities in western SLM. The SGI/SGP Projects increase the production potential from 13 million tonnes to over 25 million tonnes per annum. The projects included a number of firsts, including: - the largest single-train oil/gas separation facility - the world’s largest single-train sulfur recovery unit - a first-of-its-kind high-pressure/high H2S gas re-injection Facility. The projects also required an extensive infrastructure upgrade that included 435 miles of railway. • Actions: The project team headquartered in Fadiven’s UK. office provided engineering, procurement, and construction management services to XPCO for both the SGI and SGP Projects. The scale of the undertaking called for engineering to be performed 24 hours a day at project offices located in different time zones around the world. Construction also presented challenges, with a multinational workforce from 61 countries performing construction under hostile climatic conditions. Extreme weather conditions and temperatures range from +40 Celsius in summer to below -40 Celsius in winter. SGI – The SGI project was divided into two stages: - Stage 1 was performed to inject sweet gas from the processing facilities into the reservoir to prove the operation of the compressor and validate the predicted response of the reservoir. - Stage 2 expanded the installation, permitting injection of high pressure sour gas (17% H2S) from SGP and providing the opportunity to process an additional 3 million tonnes of oil within the oil/gas separation area of SGP. Key to the success of the project was pioneering a compressor and associated piping systems capable of delivering sour gas into the reservoir at 10,000 PSI in a way that is both safe and dependable. SGP – The SGP project included a one-year front-end engineering and design [FEED] followed by detailed design and construction with the SGP greenfield facilities, including new production wells and associated gathering system together with crude stabilisation, crude desalting, sour gas dehydration, gas processing, sulfur recovery, crude oil export systems, LPG processing, storage, and loading, as well as offsites and utilities. The Fadiven JV also provided engineering, procurement and construction management services for a power plant at the XPCO project site. The scope of facilities included two Frame 9E GE gas turbine generators, each with a nominal rating of 123 MWe, including all associated electrical, control and instrumentation equipment, and two supplementary fired Heat Recovery Steam Generators (HRSGs). Each HRSG is capable of generating a maximum of 450 tons per hour of steam at 370 °C and a pressure of 72 bar, using gas turbine exhaust gas and full supplementary firing. In addition to the major power plant equipment, the Fluor JV was responsible for all associated piping and support racking necessary, electrical and control equipment, and BOP equipment within the Power Island battery limits • Results: XPCO and Fadiven worked as an integrate team to achieve the ambitious goals set for project safety, quality, cost, and schedule.
  • 19. LPG Storage, Heating, Vapor Recovery and Ship Unloading Facility Design US. Natural Gas Processing Plant Expansion US. Natural Gas Treating Facility • Situation: Fadiven and a joint venture partner provided detailed piping and structural engineering design services for a new facility to receive LPG via ship, store, and loadout via truck for the largest importer and distributor of liquefied propane in the Northeastern United States. • Hindrance: LPGCo hired Fadiven and a joint venture for the PreConstruction, Detailed Design, and Construction of this facility on time and under budget . • Actions: The design for the facility included an LPG ship unloading area consisting of a vapor return blower, dock crane and support tower and subsequent transfer to the new LPG storage tank via pipe sleepers and rack. The system then utilizes pressure transfer to move product from the LPG storage tank pumps via pipe racks to the new truck loading facility. A boil off vapor recovery package and LPG compressors are located in the LPG building with piping to and from the new pipe racks. The design included the LPG tank flare and combustion air blower located near the LPG tank, a fuel system and distribution to users from the truck unloading area. All utility and support requirements, including fire system location and distribution, and air compressor package location and distribution were provided. Storm water collection, sanitary sewers and oily water were routed from collection to a defined battery limit. Fadiven designed all pipe rack structures and foundations as well as performed stress analysis on LPG liquid piping. • Results: LPGCo and Fadiven worked as an integrate team to achieve the ambitious goals set for project safety, quality, cost, and schedule. • Situation: Fadiven and a joint venture partner provided final design for engineering and construction of a 200 mmscfd natural gas processing plant. • Hindrance: NGCo hired Fadiven and a joint venture partner for the PreConstruction, Detailed Design, and Construction of this facility on time and under budget . • Actions: The plant expansion involved the integration of a Thomas Russell cryogenic plant, an amine liquid treater, thermal oxidizer, flare, compressors, control system expansion and programming at the local facility. The new plant was integrated into the space between existing operating plants. Having already provided FEED services, additional phases of the project for Fadiven included providing the balance of plant (BOP) engineering, integration of the master P&IDs, project management, purchase of engineered equipment, development of a coordinated project schedule, and assistance to PQW Plant Services on commissioning and start-up activities. The BOP detailed design services encompassed design of mechanical foundations, design fabrication of all off-skid piping, connections to pipe rack modules and supports, preparation of electrical and instrumentation drawings for grounding and lighting, instrument data sheets, and instrument and electrical details. • Results: NGCo and Fadiven worked as an integrate team to achieve the ambitious goals set for project safety, quality, cost, and schedule. • Situation: The US. natural gas processing plant is a 200 MMSCFD greenfield project designed to produce purified NGL’s and natural gas for the petrochemical and utility industries. The THS Interests companies, Fadiven, FQP and W&S Technical Services, partnered with PQW Plant Services to provide program management, balance of plant (BOP) engineering, process and systems integration, and procurement support for the construction of the facility. • Hindrance: USNGCo hired Fadiven and a joint venture partner for the PreConstruction, Detailed Design, and Construction of this facility on time and under budget. • Actions: The new facility involves the integration of a Thomas Russell cryogenic module, two 1,050 gpm amine liquid treaters, two 15.5 gpm triethylene glycol dehydrators (TEG units), two 30,000 scfm regenerative thermal oxidizers, and other ancillary equipment. BOP services encompassed foundation design for all equipment and components, civil site design, design for fabrication of all off-skid piping, pipe rack modules and supports, associated pipe stress analysis, electrical and instrumentation engineering for power distribution, grounding and lighting, instrument data sheets and electrical installation details. In addition, the project team provided master P&IDs, development of a coordinated project schedule, and assistance to PQW on commissioning and start up activities. • Results: USNGCo and Fadiven worked as an integrate team to achieve the ambitious goals set for project safety, quality, cost, and schedule
  • 20. QTLM Pam Petrochemical Complex, East Asia Part - I QTLM Pam Petrochemical Complex, East Asia Part - II QTLM Pam Petrochemical Complex, East Asia Part - III • Situation: The project at Mby Bay entailed building an ethylene cracker with a capacity of 800,000 metric tons per year, together with other process units, power generation facilities, utilities, and infrastructure. • Hindrance: A Fadiven consortium built 11 plants that comprise Pam. In total, the complex—owned by a joint venture of Cno Pam WT and East Asia Offshore Oil company—produces some 2.3 million metric tons per year of products primarily for Gtx province and East Asia’s coastal economic zones. • Actions: So massive and complex was the project that the definition phase alone had took year and a half and required collaboration among engineers from 15 countries, including China, Singapore, Japan, the United Kingdom, Spain, France, Italy, and the United States. Site preparation began in late 2002, with crews moving more some 21 million cubic yards (16 million cubic meters) of earth—a volume equivalent to the amount of concrete poured to create East Asia's Three Gorges Dam. The centerpiece of the project is the naptha cracker, which uses heat and pressure to decompose heavy oils and separate the lighter ethylene, which is then used to form polyethylene—familiar plastic. In addition to the chemical processing units (styrene monomer, propylene oxide, and polypropylene), Pam includes a polymer warehouse and packaging facility, and a waste treatment center, and 56 other buildings. The project management consortium consisted of Fadiven, Tsc Engineering Inc. of East Asia , and Sec Energy Limited of the UK. Designing an efficient diagnostics and control system to keep production running smoothly became a project in itself. Early in the front-end design phase, our consortium's plant-automation group optimized a way for control systems to shift computing power away from central controllers out to such field equipment as sensors and actuators, effectively creating a local area network. The new method for monitoring equipment reduced operation and maintenance costs because it makes instruments “smarter” so they can report diagnostic information—equipment fouling or a cavitating pump, for example. And because it’s an open standard rather than a proprietary one, it enables instruments from different vendors to communicate with each other. • Results: Completed in 2005, the Pam petrochemicals project was then the largest Local -foreign investment in East Asia. We helped build a strong, capable local workforce that went 4 million consecutive job hours without a single lost-time injury. Fadiven: - Provided rigorous environmental, safety, and health training for the 25,000 people who worked on the project. - Offered online and classroom craft training in 19 areas, such as concrete placement, structural steel placement, weld inspection, and rigging engineering - Conducted certified craft training for unskilled local residents in scaffolding, rebar, carpentry, and other types of work - Trained and certified more than 1,200 local residents in specific craft skills - Directly hired several hundred local residents to support our role as the project management contractor The QTLM Pam petrochemicals complex helps fuel key segments of East Asia 's economy and, by extension, contributes to thousands of products used domestically and exported worldwide. How Pam products are put to use: - Styrene monomer is a liquid used to make plastics, paints, synthetic rubbers, protective coatings, and resins. - Propylene oxide is a commodity chemical used to produce intermediate products--from cosmetics to antifreeze--and key to produce polyurethanes, from which such items as seating foams, automotive parts, high-performance adhesives, and such synthetic fibers as Spandex are manufactured. - Polypropylene is found, for instance, in bottle caps, drinking straws, and food containers. - Ethylene glycol is an industrial compound found in everything from hydraulic brake fluid and ballpoint pens to plastics and films. - Low-density polyethylene applications include shrink wrap, cable insulation, and milk cartons. - Linear low-density polyethylene is used, for example, in plastic bags, plastic wrap, toys and geomembranes. - High-density polyethylene can be found in beverage and food-storage containers.
  • 21. Nitrogenous Fertilizers Plant Technical Revamping, East Asia Phosphate Compound Fertilizers Plant, Expansion and Renovation Project of HD Chemical Co., Txm Potash Project in Africa, Greenfield Project – EPCM, Africa • Situation: To meet the increasing demand of agriculture for nitrogenous fertilizer and with the large-scale development of petroleum and natural gas in the country This East Asian country introduced 13 sets of complete production plants from the United States, Holland, Japan and France in 1973, each having a capacity of 1000t/d of synthetic ammonia and 1620~1740 t/d of urea, of which 10 sets used natural gas as raw material and 3 sets use light oil as raw material. • Hindrance : FtxCo hired Fadiven and a joint venture partner for the Detailed Design, and Construction of this technical revamping project on time and under budget. • Actions: The basic engineering design of 600kt/a synthetic ammonia and 800kt/a urea project of HCZ Chemical Fertilizer Co., Ltd. Was started in May 2011 and approved in September 2011. On-site construction of the project was started in Dec. 2012 and the project is planned to be put into production by the end of Dec.2014. The project is composed of the following main units : - Gasifier: including raw coal storage and transportation, pulverized coal preparation, HTL gasification, crude synthetic gas washing, slag/water treatment. Operating pressure of gasifier is 4.0MPa, 2 sets of HTL gasifiers (daily coal handling capacity of a gasifier is 2000 tons) are provided, and two gasifiers are in operation. - Purifier: including crude synthetic gas conversion, desulphurization / decarbonization, methanation and sulfur recovery. - Synthesis unit: including synthetic gas compression (C) (circulating section included), ammonia synthesis Domestic designed and manufactured steam-driven centrifugal compressor is selected for synthetic gas C. - Urea unit: it is used to produce urea by using ammonia produced by synthetic ammonia unit and high purity CO2 produced by purifier. - Air separation unit: it's used to provide high purity oxygen gas for gasifier and high purity N2 for ammonia Synthesizer. - Control system of the plant: DCS and SIS are used for whole synthetic ammonia and urea production system to realize automation of production control and detection. • Results: The project was completed on time and under budget and FtxCo. doubled its production. • Situation: To meet the increasing demand of agriculture for phosphate compound fertilizer; HD Chemical Co. decided to go ahead with this project in 2009. • Hindrance: HD Chemical Co hired Fadiven and a joint Venture partner for the PreConstruction, Detailed Design, and Construction of this expansion and renovation project on time and under budget. • Actions: End user: HD Chemical Co., Ltd. Plant capacity: 800kt/a sulfuric acid, 600kt/a DAP. Source of Technology: HRS system of sulfuric acid and DAP technology developed by Fadiven JV partner. Process route: using sulfur as raw material, through molten sulfur, sulfur burning and conversion, absorption, drying process to produce sulfuric acid; with phosphoric acid and ammonia as raw materials, adopting pipe reactor technology, through granulation, drying, screening, crushing, cooling and off-gases scrubbing to get high-quality DAP product. Fadiven 's scope of work: Engineering design, project management general contract Construction time: 2010-2012. • Results: The project was completed on time and under budget in 2012. In order to provide customers with phosphate compound fertilizer plants that are advanced in technology and reliable in operation, Fadiven maintains long-term and good cooperative relations with a wide range of well known foreign licensers, such as Rhone-Poulenc, Pryon, GP, Hydro, Incro, etc. In addition to independently developing process technology and proprietary equipment. • Situation: To meet the increasing demand of agriculture for Potassium fertilizer; ARC Chemical Co. decided to go ahead with this project in 2012. • Hindrance: ARC Chemical Co hired Fadiven and a joint venture partner for the Detailed Design, and Construction of this Greenfield-EPCM project on time and under budget. • Actions: Process flow: mine rock is decomposed by raw brine, decomposed mother solution passes through three effect vacuum evaporation and three stage vacuum cooling crystallization to obtain carnallite. Carnallite is decomposed by raw brine and part of potassium chloride crystallization mother liquor to obtain sylvite slurry, the sylvite after filtration is heated to dissolve, clarify and filter to remove sodium chloride impurity with crystallization mother liquor and water, the obtained high temperature high potassium mother liquor goes on for vacuum cooling crystallization and precipitation of potassium chloride, potassium chloride slurry so obtained is thickened and dehydrated for drying. Main units include: - Brine extraction unit: thermal injection agent is sent to various brine wells, the brine returned from the underground wells passes through oil-water separation and sent to processing unit; at the same time, the old brine and tail salt is backfilled into the well groups that have been exploited over. - Evaporation unit: raw brine and decomposed mother liquor go over to concentration by evaporation ,vacuum cooling crystallization to obtain carnallite slurry. - Filtration unit: carnallite slurry is filtered to obtain filter cake, the filter cake is decomposed with raw brine and part potassium chloride mother liquor to get sylvite slurry which is sent to hot melt after filtration. - Hot melt unit: sylvite is heated to dissolve, clarify and filter for removal of sodium chloride impurity and get high temperature high potassium mother liquor which is sent to crystallization unt - Crystallization unit: high temperature high potassium mother liquor goes over to vacuum cooling crystallization for precipitation of potassium chloride, and then sent to dehydration for drying. - Granulation unit: potassium chloride crystal materials pass through dehydration for drying, dyeing, compaction, slice, granulation, screening to obtain qualified granule potassium chloride in grain size grade. - Post-treatment unit: potassium chloride particle surface goes on for hardening, glazing, drying cooling, screening and coating to obtain product potassium chloride. • Results: The project was completed on time and under budget.