Major petrochemical company

Implementation of a new management system

Client situation

  • Increased sanctions pressure, transition to new digital tools, rebuilding of the logistics network, and import substitution. This led to the expansion of the departments’ functionality and an increase in staff numbers

Approach

  • Diagnosing the procurement process and order planning, and developing MS Excel-based tools for planning automation
  • Developing strategies to improve operational efficiency and measures for their implementation
  • Developing measures to improve manageability, including mechanisms to prevent unjustified staff growth
  • Establishing a joint project office to implement the developed measures and supporting its operation

1

Functionality

Non-core functionality (~20%) was removed from the HUB, resulting in a reduction in labor intensity by 7 FTE
2

Reduced

The number of micro-teams was reduced by 40%, and the number of staff positions by 10% as a result of eliminating the 7th level of hierarchy in the Corporate Center
3

Inefficiencies

Inefficiencies in procurement and order planning processes were eliminated, resulting in a reduction of 20 FTE in HUBs and enterprises

Major chemical holding company

Optimization of staffing levels

Client Situation

  • The number of employees in the plant management department exceeded 900, while the numbers at comparable international companies were 3-4 times lower, which required optimizing the number of management personnel at the holding’s main production site

Approach

  • Description of departmental functions and categorization of staff
  • Analysis of the reporting system and links between the enterprise and the MC
  • Preparation of proposals for optimizing key business processes using our own «6 Levers» system and a summary action plan
  • Support for the development of functional business plans

1

A plan

A plan to reduce the number of employees to 660 within a year was agreed upon, and by the end of the project, the number had already been reduced to 730
2

A plan

A plan of action and recommendations for further efficiency improvements were developed
3

Support

Support was provided for the development of functional business plans

Major petrochemical company

Optimization of the export sales system

Client situation

  • In order to increase export sales, the holding acquired a raw materials trader whose product shipment scheme was not optimal. As a result, the task was set to develop a target model for export sales and logistics that would minimize personnel costs, standardize the processes for selling various products, and optimize logistics flows

Approach

  • Analysis and description of existing sales and logistics processes
  • Analysis of the trader’s current organizational structure, distribution of staff between offices and representative offices
  • Identification of key problem areas, specifics of interaction with the company’s product divisions
  • Development of proposals for a target model of export sales and logistics

1

A new standard

A new standard for export shipments and logistics was formed
2

Recommendations

Recommendations were developed for redistributing sales responsibilities and revising the organizational structure
3

New job

New job descriptions for specialists were developed

Major petrochemical company

Formulation of proposals for developing the demand for products

Client situation

  • The low level of local production of end products (medical devices, consumer goods) that require the company’s products (raw materials) for their manufacture, as well as the dynamic development of the markets for polymer pipes made of polyethylene, polypropylene, and polyvinyl chloride, coupled with the low level of raw material consumption, led to the need to create additional regulatory, legal, and economic conditions to stimulate demand for the relevant products in the Russian Federation

Approach

  • Identification of restrictions on the use of Russian raw materials in the production of relevant products
  • Development of proposals and a roadmap of regulatory measures for the development of local markets for medical devices, household goods, etc.
  • Determining the potential for using anti-dumping and other non-tariff methods to restrict imports of raw materials and finished products from the petrochemical industry that do not contradict the principles of fair competition

1

The main countries

The main countries importing products with a low level of localisation of production were identified
2

Conditions

Conditions under which it is economically feasible to manufacture products in the Russian Federation were identified
3

Proposals

Proposals have been prepared for amendments to regulatory legal acts, technical regulation acts, and strategic planning documents containing mechanisms for removing restrictions and excessive requirements, as well as stimulating the growth of production of relevant products in Russia