Specialty Chemicals Operations Excellence

Challenge: A specialty chemical manufacturer with global operations faced low levels of customer service and high costs due to the poor equipment reliability and production schedule.

OUR ANALYSIS FOUND

Safety behaviors and adherence to PPE requirements were poor .

Inventory management practices were not well defined and obsolete inventory levels had increased each month

The client had poor customer service levels; many of the misses were due to product shortages due to production issues

Equipment failures lead to many production schedule changes and missed customer shipments

Front line supervision did not drive performance and provide adequate support to the operators and mechanics

“Value Added” time of hourly workforce was low as the roles were not well defined

Implementation

Established basic EHS management system to drive safety behaviors, implement processes and systems to track and manage safety observations/actions and improved safety programs to drive employee participation.

Environment, Health & Safety

Installed a work management process and a production loss accounting system; implemented a material and production scheduling process; Installed short interval controls on key production parameters to ensure each shift operated the same.

Production Operations

Implemented improved planning and scheduling processes to drive efficiency; completed equipment RCAs and FMEAs to improve the reliability of bad actors and critical equipment

Maintenance and Reliability

Developed a organizational structure including roles with clear accountabilities and responsibilities

Organizational Effectiveness

Implemented new scheduling process to leverage correct product sequencing and campaign lengths; integrated inventory management into the scheduling process to reduce obsolete inventory

Production Scheduling

CLIENT SUCCESS

Results of our engagement include:

Delivered 15% reduction in annualized fixed cost during first project year

Reduced obsolete inventory by 65%

Improved raw material yield by 2%

“This work has really transformed my plant and the people in the plant to consistently achieve higher production. I now trust my supervisors to do the right things every shift.”

Plant Manager

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