Chemical Plant

CHEMICALS:

MAJOR INTERNATIONAL CHEMICAL COMPANY STRIVES FOR INTEGRATING A COMMODITY – DRIVEN OPERATION WITH A SPECIALTY – DRIVEN OPERATION IN ORDER TO IMPROVE EFFICIENCIES & IMPROVE PERFORMANCE FOR OVERALL COST REDUCTION

 

 

 

 

BUSINESS ISSUES–

This manufacturer of paint and coating intermediates was attempting to integrate the production of both specialty and commodity resin and polymer products with limited reactor availability.  To be able to compete in the commodity market, the current operating costs had to be reduced by at least $.02 per pound (a 20% reduction).  Master scheduling was done at corporate within SAP.  Determining plant requirements from this schedule was extremely cumbersome and time consuming.  The challenges included getting control over inventory control, scheduling and operations, as well as energy management and Management and Supervisory Training needs.  Areas included to be addressed were:

  • Excessive amount of changeover time
  • Poor plant level scheduling
  • Excessive and misplaced inventory
  • Front Line Supervision without direction, training
  • Low productivity
  • Energy costs/consumption not fully understood or managed with escalating energy unit costs

PROJECT OBJECTIVES–

  • Increase reactor utilization for increased throughput
  • Develop raw material and finished goods inventory practices
  • Develop an Energy Management System taking into consideration volumes, mix and actual weather implications
  • Address the maintenance process to insure planning, correct work prioritization and organization is properly aligned with the operations’s needs
  • Align all management functions, roles & responsibilities with the proper management operating communications system and key performance reporting

MAL DELIVERED–

  • Developed a plant level tool for scheduling the plant, short & long term, determining manpower and equipment requirements
  • developed and installed Energy Management Program
  • Implemented the process of Continuous Improvement – Problem Identification, Root Cause Analysis and Resolution
  • Developed a system for incorporating energy use practices into the daily equipment operation
  • Increased throughput over 20% at a value of more than $1,300,000
  • Reduced electrical consumption by 8% and natural gas consumption by 15% for annual savings of over $2,500,000
  • Reduced Finished Goods Inventory by 5% and Raw Materials Inventory by 15% while improving on-time shipments