Dock and demurrage performance improvement at an oil refinery
- Location
- Pennsylvania, USA
- Year
- 2015
- Engagement
- Profitability Improvement: Supply Chain & Logistics
Airline-owned refinery on the east coast seeking cost reductions. Demurrage charges (due to extended cargo ship docking) were higher than benchmarks. Most charges were avoidable based on key process opportunities found in diagnostic.
Our team developed start- and finish-checklists for dock operators to prepare for unloads and expedite disconnection. We established flow rate KPI to be monitored hourly by key personnel, and to ensure on-time unload. We coached supervisors to conduct 4x follow-ups during shift and redirect teams as needed.
Flow rate performance vs. target over the engagement period
USD $2.6m annualized savings
Improved communication across all operations teams
Increased on-time departures for suppliers which improved relationships significantly