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Fertilizer Company

NEEDS-BASED RESULTS

 

Fertilizer Company

SITUATION

Major fertilizer manufacturer facing growing competition and rising costs of production associated with a unionized, traditional workforce and aging facilities.

DRIVER GOAL

  • Reduce fixed cost per ton by 5%.

RESULT

  • Reduced fixed cost per ton by more than 8%.
  • Achieved annualized savings of $12 million.
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Case Study

Improve Operational Performance & Reduce Production Costs

Issue

A major fertilizer manufacturer facing growing competition engaged The Highland Group to help address the rising costs of production associated with a unionized, traditional workforce and aging facilities.

Highland Approach

The Highland Group utilized a joint-team approach, involving more than 350 people, to assess the operation, then quantify, design and implement practical solutions to short-term performance issues and long-term barriers to success. Identified and implemented thirty initiatives to permanently affect how the business operates now and in the future.

Actions Taken

  • Developed and implemented an integrated System For Managing operations, maintenance and materials.
  • 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.
  • Set the stage for ongoing “team-based” performance improvement.

Reduced fixed cost per ton by more than

8%

while achieving annualized savings of $12 million

Related Information

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