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
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.
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.
Implemented improved planning and scheduling processes to drive efficiency; completed equipment RCAs and FMEAs to improve the reliability of bad actors and critical equipment
Developed a organizational structure including roles with clear accountabilities and responsibilities
Implemented new scheduling process to leverage correct product sequencing and campaign lengths; integrated inventory management into the scheduling process to reduce obsolete inventory
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.”