Question

Project 5.2: Identifying a Power Plant Problem You are an independent consultant and operate a business known as Pro-Active Consultants Inc. from your home. Four days ago you received a telephone call from Paullette Machon, who is vice president, operations, of Baldur Agricultural Chemicals (BAC), a company with manufacturing plants across the country. She said she has a task for you and invited you to visit her at the BAC office at 1450 Disraeli Crescent (of the town or city where you live). “I want you to drive over to our plant in Gordontown,” she announced, “to look into a technical problem in the power house.” (Gordontown is 43 miles from your city, has a population of 15,700, and its primary employer is the BAC plant.) “I’m concerned that power house costs are rising at Gordontown just at the moment when world fertilizer prices are dropping,” Ms. Machon continues. “This is causing the company to be uncompetitive in both national and international markets.”

Ms. Machon explains that BAC requires a lot of hot water and steam in its manufacturing operations. However, over the past two years fuel consumption at Gordontown has risen by 18%, numerous breakdowns have occurred that have interfered with production, and there has been a sharp rise in production costs. She has visited the power house repeatedly, but has never found anything that could be attributed to poor operation. In fact, the power house has always been immaculate. Now Ms. Machon wants an independent consultant to take a look, talk to the people in the power house, and try to identify any production problems. She also hinted that the problem may not only be technical. “The present chief engineer at the BAC power house is Curt Hänness, and he is to retire in three months. BAC management has to decide whether to promote Harry Markham, the existing senior shift engineer, or to bring in a new chief engineer from outside the company. On paper, Markham is ideal for the job. He has worked in the power house for 15 years (he is now 36) and always under Hänness, so his knowledge of the plant and its operations cannot be challenged. Yet the rising costs indicate that all is not as it should be in the plant, and we want to be sure that the new chief engineer does not perpetuate the present conditions.” She said she would inform Hänness and Markham that she has engaged you to study the hot water and power generating system in their power house, and that they are to expect you. You visit the BAC power plant in Gordtontown today. During your talks to plant staff and tours of the plant you make the following notes:

5. Overreading of meters could give false flow figures—make plant seem to produce more steam than is actually produced. 6. Good housekeeping obviously achieved by neglecting maintenance. Incorrectly placed emphasis probably caused by frequent visits from company president, who likes to bring in important visitors and impress them. Hänness likes reflected glory (so does Markham). 7. Shift engineers are responsible for maintenance of pumps and vacuum equipment. Not enough time given over to this. They seem to prefer straight replacement of whole units on failure rather than preventive maintenance. Costly method! Obviously more breakdowns: they wait for a failure before taking action. A preventive maintenance plan is needed. 8. Markham seems O.K. Genial type; obviously knows his power house. Proud of it! But seems to resist change. Definitely resents suggestions. Does he lack all-round knowledge? Is he limited only to what goes on in his plant? Is he afraid of new ideas because he doesn’t understand them? Young staff hinted at this: too loyal to say it outright, but I felt they were restive, hampered by his insistence that they use old techniques that are known to work but are slow. Nothing concrete was said—I just “felt” it.

Answer 1

Evaluation Report

Title: An Evaluation Report by Pro-active Consultants Inc., concerning technical issues and personnel problems at BAC's power plant.

Executive Summary:

BAC is a company that produces the fertilizers and has plants throughout the country. Due to the higher costs incurred in power plants while the fertilizers price was falling, the company has significant difficulties competing in the markets. Vice-Chair of the Corporation Ms. Paollette Machon has made every effort to identify the problem and has done no work to identify technical gaps and staff issues in the plant, so she contacts Pro-active Consultants Inc., which tends to be an independent advisor. A report was prepared by the Pro-active Consultant to identify reasons for this problem that must be corrected shortly.

Table of Contents:

1. Introduction

2. Technical problems

3. Personnel Difficulties

4. Summary/Conclusion

1. Introduction

BAC's is a fertilizer producing, distribution and competitive sector because of the cost increase in a power plant, while the global fertilizer market prices continue to be low. This makes it difficult for them to compete on the market. The vice president of the company has visited the power house several times by himself, but the better conclusion can not be drawn. In order to resolve the problem, they contacted an Indepents consultancy named Pro-active Consultants Inc. In order to analyze the issue, the consultant was invited to see Gordontown. The proactive advisors should be identified and an evalution report should be written about the technical problem and personnel difficulties faced by the company.

2. Technical Problems

The main task of pro-active contractors is to recognise technical issues. The major problem in the house of power is to be understood. It should also be remembered that over the last few years the price of fuel has increased to 18%.

The vice president invited Mr. Curt Hanness and Mr. Markham in the house to research and recognize the hot water system and the energy production system.

The reason behind the technical difficulties, the dialogue and the tour with the plant workers across the BAC energy house in Gordonown was discovered while visiting the Gordontown power plant. The issues are listed below.

Insufficient log management, even machine files can not be changed and have not been properly documented if it needs records. The maintenance of equipment files that help to understand the condition of equipment is essential. The understanding that equipment is prone to wear and tear is important. Improper maintenance can cause fatigue and technical difficulties. Information is expected to be registered. This is usually the first issue. Good housekeeping does not necessarily prevent problems with appliances, it is important to keep them.

Boiler and flow metres, which tends to be a main cause for the technical problem, are badly maintained and maintained. For the past three years, flow meters have not been maintained for the production company to serve. The inexact outcome can be given by this poorly held flow meter. This is also a source of technical issues.

3. Personnel Problems:

The statement that Mr Markham is in a struggle or uncertainty of embracing and bringing about the new change is important to understand. This can be the main personnel problem.

Shift engineers tend to maintain the pumps and machinery for the vaccine, but not enough maintenance time has been provided. Rather than preventive maintenance, the organization opts for expensive replacement. This dosage gives plant personnel no room for a significant knowledge and operational update of the equipment.

It should be told that Mr. Markham and Hanness show no interest in a Corland 200 power plant operated by Micro, when negotiating it with them in "Plant Maintenance" and shows eagerness in having technical updates.

4. Summary/Conclusion

It is acknowledged that Mr. Hanness taught Markham well, but he used his old techniques to keep him from impenetrating the new change. But only with the aid of new changes do the problems have to be resolved. The business must provide the young talents with enough time to improve their abilities and also transfer to industry competition with up-to-date equipment and technology. Mr Markham also had to embrace the above-mentioned move, which is allowing the company to farewell, shortly after Mr. Hanness ' withdrawal on the sector.

Recommendation:

With the current technical updates the company needs to be up to date and take decisions to bath in the market well, according to the updates, so as to avoid problems.

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