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Chemicals Manufacturer

NEEDS-BASED RESULTS

 

Chemicals Manufacturer

SITUATION

Manufacturer of chemical formulations needed help to reduce customer complaints and improve service levels, while reducing inventory levels and manufacturing costs.

DRIVER GOAL

  • Reduce customer complaints by 75%.
  • Achieve a 98% sustainable on-time shipment performance.
  • Reduce inventory by $5.5 million.
  • Reduce manufacturing costs by $2.8 million on an annualized basis.

RESULT

  • Reduced quality complaints by 75%.
  • Achieved on-time shipment performance of 98% or above.
  • Reduced inventory by $6.1 million.
case study image, CS-209 large

Case Study

Reduce Inventory & Improve Customer Service

Issue

A manufacturer of chemical formulations (plasticizers, inks, urethanes and powders) engaged The Highland Group to help reduce customer complaints regarding quality and improve service levels while reducing inventory levels and manufacturing costs.

Highland Approach

The Highland Group conducted a Discovery & Design process to review the current issues and map a plan to achieve the Driver Goals established by the client leadership team. A “joint team” approach was utilized to quantify, design and implement practical solutions to identified barriers.

Actions Taken

  • Developed and implemented an integrated System For Managing for all operations.
  • Implemented volume-related crewing processes.
  • Implemented processes to reduce and control inventory.
  • Implemented 5S systems (sorting, straightening, systematic cleaning, standardizing and sustaining) at all sites.
  • Conducted kaizen events focused on the resolution of key operational issues of safety, housekeeping, kanban inventory management, planning and scheduling, productivity, quality management and maintenance.
  • Trained client champions to drive continuous improvement.

Achieved annualized savings of

$3m

while delivering on-time shipment performance of 98% or above

Related Information

subject matter-based

Project Leader

Manufacturing & Industrial

Joseph is a senior executive with more than 40 years of international industry management and consulting experience, primarily in the areas of process improvement, working capital optimization and operational metrics. Having served in more than 21 countries around Latin America, the Caribbean, the Pacific Rim, and North America, Joseph is skilled at implementing successful and sustainable change programs in culturally diverse environments.