Our holistic operational and manufacturing analyses resulted in annual cost savings of $9 million.
The Challenge
A large private equity-owned film extrusion company asked ChemQuest to optimize its raw material processing costs. We were tasked with evaluating all potential waste streams, with a goal of eliminating waste and providing raw material cost savings.
Our cross-functional team evaluated the company’s existing processes and developed key performance indicators (KPIs) to benchmark existing processes and identify areas for improvement.
Custom Full Analyses of Waste Streams and Manufacturing
Our team focused on three main areas for this project: first-pass yield, machine run rates, and scrap handling.
First-Pass
Yield Loss
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First-pass yields = 93%
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Overall material yields = 95% (including 2% reworkable materials)
Machine
Run Rates
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Maximized at all times
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Not previously evaluated in relation to yield gains
Scrap
Handling
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Scrap/landfill rate = 3%
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Lost/unaccounted = 2%
The Results
Our team’s customized, targeted recommendations resulted in significant efficiency improvements and cost savings:
- Optimized machine startups = 1% loss reduction realized by feeding material more slowly
- Improved machine scheduling = 1.5% loss reduction realized by increasing efficiency
- Much of the material previously classified as scrap captured as usable rework = raw material savings outweighed additional handling costs to properly identify/segregate materials
- Less scrap = reduced landfill costs and improved carbon footprint
- Total savings = 3% in raw material costs, or $9 million annually
- Additional benefits seen in product quality, customer service/on-time delivery, and general morale on the manufacturing floor