Project: Industrial Maintenance and Capital Work
Client: Rohm and Haas
Location: Deer Park and La Porte, Texas
Alliance Period: 1999 - Present

Rohm and Haas, a worldwide leading manufacturer of specialty chemicals, formed an alliance with Zachry in 1999 to improve reliability, boost employee morale and raise safety performance at its two industrial plants in Houston, Texas. Zachry assumed responsibility for total maintenance at the Bayport Plant in La Porte, Texas, and for supplemental maintenance and small capital work at the Deer Park plant (the world’s largest methyl methacrylate monomer producer) in Deer Park, Texas.

Zachry began work at the Rohm and Haas sites in January 1999. We consolidated four incumbent contractors and 500 employees on site. We demonstrated our value to the alliance by streamlining the maintenance organization and aggressively improving planning, scheduling and workflow processes. At the same time, Zachry created an award-winning safety environment.

From 1999 to 2004, Zachry and Rohm and Haas documented cost improvements and savings of more than $13 million. During this period, Zachry performed 7.3 million workhours with zero lost time incidents.

SCOPE OF WORK
Zachry performs an average of 850,000 workhours per year at the Houston plants and employs an average 363 workers per year. Combined, the Houston plants generate about 125 work orders per week.

Zachry provides primary and specialty craftworkers and supervision and technical personnel to accomplish various assignments, including:

• total and supplemental maintenance
• major and small capital projects
• turnaround execution and management
• project management

CAPITAL WORK
Zachry has completed nearly 750 small capital projects, averaging 125 projects each year since 1999. Capital projects account for 1.7 million direct workhours of construction onsite. Significant capital projects completed by Zachry include the construction of a new $50 million methacrylates unit, installation of a 28,000-horsepower reciprocating compressor (with an estimated $4.5 million total installed cost), and the $40 million expansion of a methyl methacrylate monomer unit. Other capital work includes the installation of a 3,600-ton refrigeration machine, tank replacements, piping modifications, HAC column replacements, utilities stack/ flare repair, primary/ secondary centrifuge overhauls and modifications, and packaging line expansions.

TURNAROUND PLANNING
Zachry expanded our service offering to Rohm and Haas in 2002 by developing an integrated Turnaround Management Team for scheduled turnarounds. Subsequently, Zachry helped Rohm and Haas design a Turnaround Management Process (TMP) that ensures effective implementation of the Rohm and Haas Turnaround Best Practices Manual. The TMP includes strategic planning, scope development and alignment, detailed planning, pre-turnaround work, turnaround work execution and post turnaround work and evaluations.

ACCOMPLISHMENTS
The sites have implemented annual cost saving initiatives each year resulting in improvements in the following areas:

• productivity management
• indirect savings
• quality
• equipment savings
• sustained maintenance and reliability enhancements
• business processes and innovation

From 1999 to the present, Zachry reduced indirect labor costs and generated equipment cost improvements. We reduced craft rework and improved processes to yield quality improvements that generated savings. Improvements in small capital productivity, maintenance, innovations and business processes, plus a reduction in equipment cost per workhour have generated millions of dollars in savings.

Zachry has improved the average indirect costs per work hour by consolidating the organization, improving skill level and technology, and integrating processes and systems. This helped lower the total rework rate and labor costs, which improved quality of work and generated cost savings. Improved productivity helped reduce overtime and lower related owner costs. Additionally, Zachry refined business processes and identified opportunities for innovative enhancements.

The implementation of new work processes directly resulted in cost savings. Since the transition, Zachry introduced the following work processes at the Rohm and Haas sites:

• developed and implemented ConstructSim, a “4-dimensional” construction simulation modeling technology for capital projects
• added an automated material take-off program in the project controls work process
• created a work package process
• introduced the Excel Everywhere process
• shared resources between projects and sites to facilitate a level workforce
• interfaced the Primavera construction schedule with the Rohm and Haas schedule
• developed a dedicated turnaround group consisting of both Zachry and Rohm and Haas personnel
• implemented a turnaround process including a turnaround scorecard system
• incorporated the use of Palm Pilots to streamline field activities
• implemented QMAX in the quality controls work process
• participated in ADVANTAGE Group meetings to share best practices with others
• implemented a training program for all employees

Zachry is proud of the continuous improvement ideas generated by employees through our Excel Everywhere E2 process. The E2 program encourages employees to submit value added ideas to management. Many of these ideas are implemented and result in a cost savings to Zachry and Rohm and Haas.

For example, by electing to purchase bucket trucks versus renting them, Zachry saved $60,000. In another case, Zachry cut costs by $50,000 by using welded pipe shoes versus clamps.

SAFETY
The Houston plants have enjoyed continuous safety success. From the contract inception, more than 7.5 million workhours have been performed at the Houston plants with zero lost time incidents and a recordable incident rate of just .49. This led the Houston Business Roundtable to award the plants the HBA “Large Maintenance Contractor Safety Excellence Award” two years in a row. In addition, Zachry has continued to maintain OSHA VPP Star Status that was achieved in 2003.

In 2004, both the Bayport and Deer Park sites were recognized as winners of Zachry’s most distinguished safety honor – the Heart of Zachry Award. Eighteen sites received the award for developing extraordinary safety cultures and upholding the highest safety standards.

Other awards and recognitions achieved by these sites include:

• 2000 Texas Safety Association Award of Merit
• 2000 Rohm and Haas’ “Program of Merit” Award
• 2001 Texas Safety Association Award of Merit

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