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Posted On: 02/03/2006

LCE Reliability Excellence at Alcoa earns 2006 American Council of Engineering Award

PlantServices.com

Life Cycle Engineering (LCE), a leading provider of maintenance and reliability solutions for government and private enterprise, has been honored by the American Council of Engineering Companies (ACEC-SC) with a 2006 Engineering Excellence Award, conveyed in recognition of the pioneering Reliability Excellence (Rx) initiative at Alcoa’s Warrick County, IN smelting operation.
 
LCE chairman and CEO, Jim Fei said, “This prestigious industry award serves as confirmation of LCE’s leading position in the innovative reliability engineering services arena and affirmation of the unparalleled dedication of LCE employees to our client’s success.”
 
LCE's proven Reliability Excellence (Rx(R)) methodology, based on operations owning asset reliability - a departure from the common held belief that reliability is a maintenance issue, has produced more than $9 million in financial benefits at the Warrick County, IN, aluminum smelter owned and operated by Alcoa Primary Metals, Pittsburgh, PA. The prospect of sustainable benefits propelled by the success of this project has brightened the business outlook for this initially beleaguered plant and triggered additional capital investment from Alcoa of $400 million, providing direct economic support to employees, local service providers, and the area economy.

The Rx model has been instrumental in reducing plant maintenance costs by 16 percent, a 30 percent reduction in the maintenance component of aluminum production costs setting the stage for continued improvement in this plant and Alcoa’s 21 smelting sites worldwide. Since its inception in March 2003, the $600,000 Rx project investment has produced $9.3 million in tangible benefits in its first three years, which are expected to double to $19 million by Fall 2006.
 
The Rx initiative driving the Alcoa turnaround embraces a Three Waves process, and uses teamwork to change the behavior and work culture within the plant environment. Machine operators, craft personnel, supervisors, and managers from maintenance, operations, stores, and engineering departments were all involved in making the changes, which align with union contracts.  Working together to save the plant, the 600-member union and management collaborated to set goals, measure progress, and break down barriers. The Warrick plant has now become an Rx showcase, frequently hosting tours for reliability professionals worldwide.