The company operates internationally, from production to distribution. As a market leader in its field, it must continuously improve its operations. The company develops both traditional petrochemical products and biological, sustainability-focused products. Various sustainable solutions are experiencing strong growth in the industry.
The Green Lean development project was conducted under the leadership of the Green Lean project manager. The goal was to identify and address costs arising from discrepancies at different shipping and receiving points.
Problems and Challenges
Annual disruption costs were approximately €20 million.
Shipping, receiving, and logistics used different measurement standards, which were not calibrated with each other.
Measurement methods varied across locations.
Existing tracking systems could not identify the reasons for discrepancies; this was partly due to the difficulty of data analysis.
Over the course of the 10-month project, all related functions were examined according to the DMAIC process. About 60% of costs were eliminated during the project, with nearly all costs addressed in follow-up projects. Numerous development and corrective actions were undertaken throughout the project.
Corrective and Development Measures
The methods used were assessed, their accuracy and efficiency analyzed, and the entire measurement system was restructured based on the best-found approach at each point; a calibration system was established.
Measurement methods were standardized across all operations, and staff were trained to use the new system.
The entire logistics chain, as well as tools and methods used, were analyzed, and identified deficiencies were corrected.
Tracking systems were reviewed, errors were identified, and corrections made.
All system users were trained in the updated system and taught problem-solving techniques.
Systems and tracking methods were simplified, and responsibilities clarified.
Continuous improvement teams were established in units that previously lacked them.
ROI
The project’s ROI was 30:1.
