FORTUNE GLOBAL 5 REFINERY SAVES OVER $2.1 MM IN ONLY SIX WEEKS
Posted on Dec 31, 1969
A FORTUNE Global 10 refinery with sites all over North America engaged Track Software for a "parallel pilot" for their upcoming turnaround. For the purposes of the pilot, Track™ operated in parallel with existing cost tracking and contractor management processes. The objectives were as follows:
Track was installed as a SaaS solution ('software-as-a-service') and hosted by Track Software – requiring only a web client at the customer site. Track Software consultants were on-site during the 30-day turnaround to perform daily operations, resolve data exceptions, and allocate hours and costs to validated work orders.
There were two major findings:
The Current Process
The current turnaround cost tracking processes at the refinery demonstrated a number of fundamental issues:
Work Process Comparison
The plant's existing cost tracking and reporting process is separate from the vendor's invoice and payment stream; a parallel operation. Therefore, cost tracking and reporting is an overhead process dependent upon the discipline of the vendor for accurate inputs. Because the reporting stream is separate from the invoice process, the two systems are subject to discrepancies that will not be apparent until the vendor submits an invoice for payment.
Track integrates daily cost collection and reporting with the vendor's invoicing process. This is done by providing an interface of authorized charges to the owner's Accounts Payable system and to the contractor. The contractor is paid through the reconciling of hours and costs in Track. The daily acceptance of charges by the contractor, and the authorization of charges by the owner results in a single, accurate and real-time source of cost information.
In just 30 days, the parallel pilot demonstrated that Track would have saved the plant nearly $650,000 during their 30-day turnaround.
For a breakdown of the savings, please view the PDF.