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“This is what I love about Frankie - it creates a central location for holding all company relevant maintenance documents and equipment drawings. Now we have the ability to simply jump into one central location/system to find critical asset planned maintenance schedules including reviewing how our kettle burners, and other critical assets have been maintained.

As part of recent due diligence process with the Steel & Tube Holdings acquisition, we were able to bring all of our key operational documents together in one central location. This has made the transition simple and easy.

We’re now starting to correlate equipment behaviour and investment decisions around OPEX and CAPEX. It’s really easy to understand the impact to the business and what we need to do to get ahead of any future unplanned downtime.” 

Steve Halse, General Manager

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This case study examines how Perry Metal Protection, a critical player in New Zealand's Galvanizing market, transformed its asset management strategy to achieve predictable capital expenditure and reduced operational downtime.

Challenge: Unpredictable CAPEX and Operational Disruptions

Steve Halse, Galvanizing Manager of Perry Metal Protection faced significant challenges due to its outsourced asset management model. As one of New Zealand's last remaining large Galvanizing businesses, the reliability of its specialized equipment was paramount. However, the existing system led to:

• Large, Unplanned CAPEX Requirements: Critical asset failures often resulted in sudden, substantial capital expenditure demands that blindsided the Perry Metal Protection leadership team. This unpredictability made financial planning difficult and strained resources.
• Increased Downtime: Unexpected equipment breakdowns directly translated to extended periods of operational downtime, impacting production schedules, delivery commitments, and overall profitability.
• Lack of Internal Control: Outsourcing meant a disconnect between the day-to-day operational insights of the site teams and the strategic decision-making of senior leadership regarding asset health and future investments.

Solution: Empowering In-House Expertise and Collaborative Systems

To address these pressing issues, Perry Metal Protection implemented a two-pronged solution focused on bringing asset management capabilities in-house and fostering greater collaboration:

• In-House Mechanical Engineering: The company strategically invested in building an internal mechanical engineering team led by Adriaan Hattingh. This move allowed for:
  
  • Proactive Maintenance: A dedicated team could implement preventative maintenance schedules, conduct regular inspections, and identify potential issues before they escalated into costly failures.
  • Deep Institutional Knowledge: The in-house team developed a comprehensive understanding of Perry Metal Protection's unique machinery and operational nuances, leading to more tailored and effective maintenance strategies.
  • Faster Response Times: Immediate access to engineering expertise meant quicker diagnosis and resolution of issues, minimizing downtime.
• Integrated Communication System: Perry Metal Protection established Frankie to create a robust system designed to bridge the gap between site teams and senior leadership. This system facilitated:
  
  • Regular Reporting: Site teams provided structured, regular reports on asset performance, maintenance activities, and emerging concerns.
  • Collaborative Planning: Senior leadership gained real-time visibility into asset health, enabling data-driven discussions and collaborative planning for future CAPEX needs.
  • Shared Understanding: The system fostered a shared understanding of asset priorities and the long-term strategic vision for equipment management.

Results: Predictable CAPEX and Enhanced Operational Efficiency

The implementation of these solutions yielded significant and measurable positive outcomes for Perry Metal Protection:

• Predictable CAPEX Requests: With proactive maintenance and transparent reporting, the leadership team could anticipate capital expenditure needs well in advance. This allowed for better budgeting, strategic allocation of funds, and elimination of sudden financial shocks.
• Reduced Downtime: The shift to proactive, in-house maintenance drastically cut down on unexpected equipment failures, leading to a substantial reduction in operational downtime. This improved production efficiency and ensured consistent delivery to customers.
• Improved Asset Lifespan: Better maintenance practices extended the operational life of critical assets, delaying the need for costly replacements.
• Enhanced Strategic Planning: The collaborative system empowered leadership to make informed, strategic decisions about asset investments, aligning them with the company's long-term goals.

By bringing asset management in-house and fostering a culture of collaboration, Perry Metal Protection successfully transformed its operational stability and financial predictability, solidifying its position as a resilient leader in the New Zealand galvanizing industry.

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