Case study · Manufacturing
Chemical batch processor cuts direct cost per pound 10% and raises throughput 30%
A batch processor of metal-treatment chemicals needed to consolidate plants and streamline its supply chain while taking on more volume. USC fixed how orders were assigned to vessels and scheduled materials to the right vessel at the right time.
Results
10%
reduction in direct cost per pound
30%
increase in throughput
30%
reduction in labor hours
Productivity rose 1,100 pounds an hour, and lead time fell 20%.
The situation
The company wanted to cut costs by consolidating plants and streamlining its supply chain, while handling more volume and still meeting customer terms.
What the assessment found
- Orders assigned to plants by aggregate tonnage, overbooking some vessels and underbooking others
- Constrained, underused resources and logistics disruptions
- Production and maintenance planned separately
How the work was done
Planning: produce consistently
Shifted from producing set pounds of individual products to consistent production in every category, with production and logistics sharing output and schedule data.
Materials: right vessel, right time
Used automated scheduling to deliver materials to the right vessel at the right time, cutting inventory, material use, waiting and handling.
30%
increase in throughput
Floor: cells and visual control
Installed cellular manufacturing and visual tools such as schedule boards and monitors to keep teams focused on productivity.
20%
reduction in overtime
Lasting impact
The company made products much closer to demand, cut costly overtime and caught up on backlogs, using its existing facilities to support higher sales and profitability.
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