Reduced batch cycle times boost chemicals producer’s revenue by 25%

Executive summary

When a global chemicals producer’s required production volume increased by 15%, the company realized that not being able to produce the incremental volume in-house would result in an opportunity loss of about ~US$11 million for one of its North American sites. The company decided to implement TRACC Operations Best Practices to address these challenges and create the capacity required to absorb the increase in volume.

Using the Focused Improvement TRACC, Visual Management TRACC and key CI principles, the company increased revenue by 25% and reduced batch cycle times by 20%.

RESULTS
  • Revenue increased by 25%
  • Batch cycle times were reduced by 20%
  • The cost of capital installations or other alternative options to meet the demand was avoided
Challenge

When a global chemicals producer’s required production volume increased by 15%, the company realized that not being able to produce the incremental volume in-house would result in an opportunity loss of a ~US$11 million revenue stream for one of its North American sites. As such, the company decided to implement TRACC Operations Best Practices, to address these challenges and create the capacity required to absorb the increase in volume.

Solution

Using the Focused Improvement TRACC, the company discovered that certain chemicals could be added concurrently, rather than sequentially, which enabled the site to reduce batch cycle times without compromising on quality or employee safety. The site also installed a Visual Management board to track progress and display key batch information. Furthermore, using CI thinking, the site’s operations team coordinated efforts with the maintenance and production departments to improve production planning and ensure the optimal utilization of assets.