BOTTOM LINE
Our cross-functional team’s deep knowledge of best-in-class manufacturing processes for formulated materials uncovered significant areas for improvement at the client’s facility while also identifying numerous limitations that were severe enough to limit the growth potential of the client’s investment. Following our thorough audit and review, the client followed our recommendation that relocating to a more modern facility was the best path forward.
Table of Contents
The Challenge
A leading general contractor in the water and wastewater construction industry entered a new market area by purchasing a niche manufacturer of a unique repair coating. The new owner lacked experience in manufacturing formulated materials but was extremely conscientious regarding both environmental health and safety (EH&S) and a structured approach to manufacturing.
The existing staff struggled to meet the more stringent policies required by new management, who, in turn, asked ChemQuest to audit the acquired location and its operations. We were tasked with assessing the site’s manufacturing operations, conducting EH&S diligence, and assessing the supply chain.
Multiple Custom Analyses of Manufacturing Operations, EH&S, and Supply Chain
ChemQuest is uniquely positioned in the consulting space because our subject matter experts have expertise not only across the specialty chemicals value chain but within our four business pillars (Business Strategy & Transformation, M&A Advisory Services, Operational & Manufacturing Efficiencies, and Technology Development). Teams work synergistically across these pillars to deliver the highest value to our clients, as well as hand-in-hand as strategic thought partners with our clients to identify the best path forward for their business.
Our team conducted on-site diligence at the client’s facility to fully assess its existing manufacturing operations. We studied production processes, including operating procedures and robustness, with an eye toward identifying potential areas of improvement. We explored routine maintenance, preventative maintenance programs and software, and quality systems (including any certification requirements, if applicable).
The team also considered capacity and utilization at the site, evaluating overall equipment effectiveness (OEE) and known bottlenecks and capacity restraints. In terms of capital expenditures (CapEx), we took future requirements into account to evaluate the client’s ability to expand capacity based on growth projections or the incorporation of other chemistries (e.g., through M&A activities or new technology development).
Our full EH&S audit emphasized compliance with requirements from both the U.S. Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA), including factors such as hazardous waste management, emissions, personal protective equipment, spill procedures and reports, and much more. We also evaluated the site’s process safety management and management of change documentation.
Effective supply chain management is essential in today’s manufacturing sector. Here, our team analyzed key raw material inputs and pricing, the client’s material resource planning (MRP) system, inventory flow, turns, and controls. We identified quantities, modes of purchase, and frequency of orders with the goal of uncovering potential raw material savings.
The Results
Our cross-functional team’s deep knowledge of best-in-class manufacturing processes for formulated materials enabled ChemQuest to conduct a full facility audit that uncovered significant areas for improvement. The optimization of several lacking standard industry practices would improve accountability and traceability, especially considering product warranty liability concerns.
While we made recommendations for improvements in all audited areas, the team also identified numerous limitations regarding the current site location that were severe enough to limit the growth potential of the client’s investment. Following our thorough audit and review, the client followed our recommendation that relocating to a more modern facility and expanding its personnel was the best path forward.
About Us
The ChemQuest Group, Inc. is widely recognized for its value creation in the specialty chemicals and advanced materials sectors among raw material suppliers, formulators, and financial investors. Our four service pillars include Business Strategy & Transformation; M&A Advisory Services; Operational & Manufacturing Efficiencies; and Technology Development, which we undertake through the ChemQuest Technology Institute and ChemQuest Powder Coating Research.
ChemQuest services extend across numerous formulated product categories and end-use markets within the specialty chemicals value chain. Our team includes former senior managers from major manufacturers, business owners, and senior technical managers, including Ph.D. scientists, with a minimum of 25 years of experience in specialty chemicals.
How can we help you? Let’s start talking: https://chemquest.com/lets-start-talking/