Case Studies
The Problem
In 2005, Open Source started working with a medium sized Civil Engineering Company, who were facing a number of issues common to most companies in the construction industry. How could they:
- Control plant costs on multiple sites?
- Ensure optimum use of owned plant?
- Manage plant assets to ensure Statutory compliance?
- Streamline the plant section business procedure?
- Remove the risk of fraudulent activity within the plant hire business process?
| Current Situation | Desired Situation |
|---|---|
| Poor utilisation of owned plant (65%) | Optimum use of Internal Plant (90%+) |
| Excessively high external plant hire costs (30%+) | Minimise hire costs of external plant (25%-) |
| Administrative heavy procedures | Streamlined operation |
| Open to theft and fraud | Eliminate risk of fraud |
| Unreliable plant management control | Ensure certification of plant |
| Limited and flawed management information | Live Cost Control |
The Solution - OpenPlant
A full analysis of the existing business process was undertaken and the major problem areas were identified. Following further consideration of the major problems, using tools from 'lean thinking', a lean software solution 'OpenPlant' was designed to provide:
- Live cost control across all sites.
- Optimum use of owned plant by checking owned plant availability before any external plant could be hired.
- Asset management for plant and vehicles.
- A streamlined business process, available to all users, as an Internet solution.
- An open system, available to all staff to remove the threat of theft or fraud.
- Reduced external hire costs, through better utilisation of hired plant and optimum utilisation of owned plant.
| Requirement | Waste(s) | Savings | ||
|---|---|---|---|---|
| Optimum use of owned plant Minimise hire of external plant |
 |
Transportation Standing plant Poor plant utilisation |
 |
3,500 orders annually, over 10,000 order items Annual external plant spend of £3.2 million 4% annual saving of £128,000 |
| Live cost control | |
Poor plant utilisation | |
Calculated at 0.25% of annual turnover £50,000 |
| Eliminate risk of fraud | |
Poor business process | |
In one installation, fraudulent activity, in excess of £30,000 per year, was unearthed |
| Ensure certification of plant | |
Excessive, staff intensive, inadequate, paper based procedures | |
Ensured compliance to remove the threat of Corporate Manslaughter charges from the Directors |
| Streamlined operation | |
High administrative staff requirement | |
Staffing levels in the plant and administrative sections reduced by 37.5% (2.5 staff). Annual saving of £48,000 |
Many industry sources claim that savings in excess of 25% can be made on plant and machinery costs. Our software has shown that savings can be made right across the business process, not just in plant costs. If you would like to acheive similar savings for your company, then please contact us for a free, no obligation consultation. Our Managing Director will be happy to discuss OpenPlant with you or to visit your company to consider whether OpenPlant can work for you.
