Plant Launch
Return on Investment
A plant launch requires a significant investment of capital. From GP’s experience
supporting capital projects across many different industries and over 100 different
startups, we know it takes time for equipment and manufacturing lines to be properly
installed, checked out, and started up. Most companies budget something for this
time. More often than not, it takes even more time to accelerate production and
get the line up to full capacity. This additional time means lost revenue opportunities.
What if GP could compress this time for you and get your plant up to full capacity
faster?
Invest in your people and their training.
An investment in people and training is probably the best way to do it. Hire your
first shift of operators three or four months earlier than you normally would. Train
them on the technologies, new equipment, and system controls. Involve them in the
equipment buy-off, contol loop checks, and systems commissioning. Yes, costs may
add up to more than you originally budgeted or planned, but trained operators and
properly installed equipment directly result in:
- Shorter commissioning and startup times
- Getting the plant up to full capacity quicker
- Getting quality products to market sooner
Prevent lost revenue by partnering with GP.
See how your company can benefit from partnering with GP on your plant launch. The
examples below demonstrate how streamlining your launch and training your operators
with GP can reduce revenue loss for your operation.
Small expansion—Addition of a new unit in a refinery
The expansion will add $1B in additional revenue per year. The total project cost
is $300M; with no additional line, plant, or technology training, the launch takes
3 months to get up to capacity.
With GP training, the launch takes a week to get up to capacity, which means a $125M
difference in revenue.
What is the investment?
- GP development of operating manuals, $150K
- GP development and delivery of 3 weeks of ILT and OJT, $450K
- Facilities, training equipment, mock-ups, simulators, $150K
- 1 month of wages and benefits for 25 operators, $100K
The total investment is $850K, for an ROI of 150.
Large expansion—A $1B+ expansion or new plant launch
With no training of the workforce, the launch gets to 70% capacity in 1 month and
works its way up to 100% capacity over the next 12 months.
With GP training, the launch gets to 70% capacity within a week and works its way
up to 100% capacity over the next 3 months, for a difference in revenue of $2B.
What is the investment?
- GP development of operating manuals, $1.5M
- GP development and delivery of 3 months of ILT and OJT, $2.0M
- GP lean consulting, $1.5M
- Facilities and training equipment, $1M
- 4 months of wages and benefits for 250 operators, $4M
The total investment is $10M, for an ROI of 200.
Is more profit at the bottom line important to you and your company? Contact us
today to learn how we can help you: