Marafiq


Site: MARAFIQ provides power, water, and waste handling services to petrochemical plants and other industrials as the Industrial Power and Water Utility for Al-Jubail and Yanbu in the Kingdom of Saudi Arabia.

Nature of Opportunity: In January 2003, the government turned over management and majority ownership of providing power, water, and waste handling services to MARAFIQ. In July 2004, under the visionary leadership of their President and his management team, MARAFIQ initiated a project to develop a strategic plan for Asset Management. SAMI was selected to support the development of the strategic plan based on proven strategic planning methodology, a logical model of maintenance and reliability progression (the SAMI Asset Healthcare Triangle), and a track record of successful implementations. MARAFIQ appointed a Strategic Planning Team and a Senior Management Steering Committee to conduct the Strategic Planning.

  • The site visits and analyses that the Strategic Planning Team (SP Team) performed for this Strategic Plan, found three broad themes or issues consistently:
  • The organization structure and functioning did not support or align with Asset Management requirements
  • There was no unified process to manage the flow or objectives of maintenance work
  • In Asset Management, the emphasis in previous years had been on the tools (SAP) of work management, not on efficiency or effective application

The Strategic Planning Team developed a vision for the company's future state: "To implement the Asset Healthcare program (later renamed the Palm Program) to meet customer needs at competitive costs leading to higher company profitability, by ensuring plant availability and optimizing business processes."

This vision was achieved through the execution of the Strategic Plan focusing on Stage 1 of the SAMI Asset Healthcare Triangle by implementing standard business processes, coupled with consistent KPI's to measure performance and productivity.

What We Did:

  • Established standard work management business processes coupled with consistent KPI’s to measure performance and productivity
  • Enhanced SAP utilization to measure and manage all maintenance and related material activities
  • Improved Asset Healthcare related competencies, including Risk Management, Root Cause Failure Analysis and Human Resources’ policies
  • Adopted a ZERO failures strategy and reducing unplanned downtime
  • Ensured equipment was operated within specified operating limits
  • Improved Maintenance Planning & Scheduling processes
  • Implemented effective contract management processes to ensure that work meets performance standards

Results: The Business Case for implementation is shown in the Realization Chart below. MARAFIQ has recently decided to go forward with Design and Implementation of Stage 2, Business Driven Reliability, to further enhance Plant Reliability and capture the remaining elements of the business Benefits Case.  They eventually expect to capture annual benefits equalt to four times the cost of the implementations, which will be expanded by a significant multiple as they continue to fulfill their charter of providing utilities support for the growing industry base in the Industrial Cities of the Kingdom of Saujdi Arabia.
Copyright 2008 Strategic Asset Management Home Site Index Contact Us