Home Health Case Studies in Maintenance and Reliability: A Wealth of Best Practices
The leader must know that he knows, and must make it abundantly clear to those about him that he knows....
Clarence B. Randal, Author, Management Expert.
Author: Jim Wardhaugh
Location: 2.2.2 Large Complex Refinery in Asia
At the time the contracting culture in Asia accepted as a norm low wages, low productivity, significant over-staffing, low quality, and the inevitability of accidents. Contractors tended to be small family businesses run by entrepreneurs as individual fiefdoms. The managers had poor managerial skills. Harvard MBAs were particularly thin on the ground.
In the refinery, our contracts were largely fixed-price lump-sum. These were attractive in some ways because they minimized the administrative effort involved in managing the contracts. However, because the price was fixed, our site supervision held a view that productivity was of no interest to us. So our supervisors took no interest in the quality of contract workers or in their numbers. That was his business not ours. To my western eye, this hands-off approach brought a number of problems:
There was little factual information available on the contractors— ^whether management, supervision, or workforce. All we knew was that J
• A mass of unidentifiable workers of questionable skill came to the
We were putting in a considerable amount of training to raise the level of competence and safety awareness, but with a huge turnover of contract employees this was ineffectual. The situation was unacceptable in a cost and safety-conscious world. We knew we must drive down the numbers and attain a fairly small and stable workforce that could be trained to a high standard. We could not afford the hands-off approach any longer. Thus we started our drive to manage the contractors actively.
Figure 33.1 Gate Access System Overview
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