Operational Improvement

Case Studies

CASE STUDY:
Vattenfall

PROBLEM

  • Strategic, long-term supply chain decisions for a mega-project
  • Complex inter-relationships between most decisions
  • Not sure the project could be financially viable

Scope and Approach

  • Master supply chain planning
  • System dynamics and real options modeling
  • Options evaluation
  • Implementation planning

RESULTS

  • 13% reduction vs. baseline cost 
  • Minimized supply risks
  • Internal alignment around critical financial commitments

%

reduction vs. baseline cost with 5 key suppliers

CASE STUDY:
PDVSA

PROBLEM

  • Bids above market price on a major capital program

Scope and Approach

  • Benchmarking of major capital and long lead time equipment
  • Cost engineering
  • Financial analysis of project cost reduction potential

RESULTS

  • 24% savings on selected major categories of equipment

%

24% savings on selected major categories of equipment

CASE STUDY:
Gazprom

WHY BSI WAS SELECTED

  • Knowledge and experience with specialized rotating equipment
  • Proven track record of quantifying equipment costs
  • Clear, detailed process and reliable data that could be used in high-profile negotiations

Scope and Approach

  • Cost benchmarking
  • Cost modeling, parametric analysis, and sensitivity analyses
  • Adaptation of costs to local (“in-country”) conditions

RESULTS

  • 25% savings on cost of major capital equipment with key supplier

%

saving with key supplier

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