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Organizational Alignment-149
The Situation:
Major fertilizer manufacturer needed to address the rising costs of production associated with a unionized, traditional workforce and aging facilities.
The Driver Goal:
Reduce the fixed cost per ton by 5%
Actions Taken:
- Identified $14 million in potential annualized savings
- Utilized first ever “joint team” approach to quantify, design, and implement practical solutions to long-term barriers
- Developed and implemented an integrated System for Managing to manage operations, maintenance, and materials
- Implemented thirty specific initiatives to permanently affect how the business will operate in the future
- Reengineered and implemented processes to support: operational yield, maintenance costs, materials management, spare parts, integrated supplier management, contracted labor management, and labor costs
- Designed and prototyped site-wide best practices with the union workforce
- Involved more than 350 people in the joint team process, setting the stage for additional “team-based” improvements
The Results:
- Reduced fixed cost per ton by more than 8%
- Achieved annualized savings of $12 million
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