MCR reduces and controls O&M costs by working with budget owners to justify all budget expenditures from a baseline of zero. We risk-rank every budget line item by evaluating the risk incurred if not funded and then comparing risk in the context of complete budgets. Our “challenge process” uses a peer review method to assess each budget line item and determine the ability to adjust the amount and timing of each expenditure.
MCR’s approach to process improvement models core processes for the entire organization. We model core processes, such as equipment reliability, work management and business planning, to a detailed, individual contributor level, where every process step, hand-off and deliverable are documented in a work breakdown structure format. Every process step, as well as every organization’s participation within the step, is evaluated and scored, allowing a rollup of performance valuations. The rollups then allow drilldowns from high-level processes or organizations to identify where processes and organizations need improvement.
Often conducted in concert with risk-informed zero-base budgeting, MCR conducts a detailed task analysis for every staffing resource to determine the criticality and risk-rank for every task across the organization. We create consolidated profiles across the organization to determine where staffing resource opportunities lie. This information is then used to create a staffing optimization plan incorporating expected attrition for integration with the risk-informed budget.
MCR’s consultants analyze existing capital plans and apply a short-form business case approach for every proposed project. This enables a risk valuation for every project to contrast against proposed investments. MCR’s Portfolio Dashboard summarizes the effectiveness of portfolio investments and identifies opportunities to reduce, delay or reallocate capital funding.
MCR experts review, analyze and benchmark capitalization policies to ensure management is capitalizing all allowable costs. We also assess the retirement unit catalog and make recommendations for additions, deletions, or modifications to ensure the catalog is aligned to the most recent industry capitalization practices. The MCR unit of property catalog and database provide clear capitalization guidance, which reduce staff time spent on analyzing capital funding requests.
MCR optimizes capital project spending by developing robust business cases with creative alternatives and quantifying reliability and safety risk. Our exhaustive research to determine equipment failure probabilities combined with consequence scenarios allow us to correctly value project alternatives when considering investments to avoid equipment failure. We also establish and facilitate a client Executive Review Team to review the business cases and make the final spending decisions.
MCR’s experts develop life cycle management (LCM) plans, which help maintain the long-term health of key plant systems. We accomplish the complete discovery of the “known or knowable” issues surrounding equipment to ensure our plans are complete and without surprises. The plans improve management’s ability to achieve safety and reliability objectives, while optimizing long-term expenses and instilling confidence in the capital plan.
MCR develops and implements strategies for improving long range planning processes and supporting information systems with a focus on equipment reliability, work force planning, outage planning and budgeting. The implemented processes ensure equipment reliability processes are integrated with work management, business planning, budgeting and staffing processes.
MCR develops and implements improvements to management reporting processes and reporting systems to provide management with greater visibility and understanding of O&M, capital and outage costs, and cost drivers. In every case, we focus on creating views with actionable information and a focus on ownership and accountability.