Fertilizer Company
SITUATION
Major fertilizer manufacturer facing growing competition and rising costs of production associated with a unionized, traditional workforce and aging facilities.
DRIVER GOAL
- Reduce fixed cost per ton by 5%.
RESULT
- Reduced fixed cost per ton by more than 8%.
- Achieved annualized savings of $12 million.
Case Study
Improve Operational Performance & Reduce Production Costs
Issue
A major fertilizer manufacturer facing growing competition engaged The Highland Group to help address the rising costs of production associated with a unionized, traditional workforce and aging facilities.
Highland Approach
The Highland Group utilized a joint-team approach, involving more than 350 people, to assess the operation, then quantify, design and implement practical solutions to short-term performance issues and long-term barriers to success. Identified and implemented thirty initiatives to permanently affect how the business operates now and in the future.
Actions Taken
- Developed and implemented an integrated System For Managing operations, maintenance and materials.
- Reengineered and implemented processes to support: operational yield, maintenance costs, materials management, spare parts, integrated supplier management, contracted labor management and labor costs.
- Designed and prototyped site-wide best practices with the union workforce.
- Set the stage for ongoing “team-based” performance improvement.
