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Step change in productivity

Company:

Chemicals Company

Challenge:

To increase production capacity and reduce costs in sites across Europe. The company was struggling due to a prolonged downturn in the market. Profit margins were all but gone and they wanted to take the opportunity drive down the cost breakeven point, make a step change in operational performance and prepare for the next upturn of the market.

Approach:

  • Conducted a detailed four-week Analysis & Design at one site to fully understand the issues and identify the improvement potential.
  • After 6 weeks of Implementation, we conducted Quick Scans at the other sites to check local improvement potential. After 4 months, we started a European rollout that was completed within 24 months and addressed all 8 sites: we simplified ways of working, implemented aligned operating models, drove up the OEE and eliminated fixed costs. Whilst still working on this assignment we identified major improvement opportunities in new product development and introduced a product innovation improvement programme.
9

an OEE improvement from 67% to 82%

an increase in daily output from 205 to 350 tons/day

a fixed cost reduction of 36%