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
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.
