Case Study – Reheis Inc.

Capacity and Profitability Optimization for Complex Chemical Manufacturing Plant

Situation

A specialty chemical manufacturer was looking to improve the overall profitability of one of its high volume, complex chemical manufacturing plants. The plant produces over 80 different product grades with very short customer lead times. The plant also had a number of process bottlenecks depending upon the product grade. The client needed a tool to prioritize potential capital upgrades to meet both short and long term profitability goals.

Approach

IMPACT developed and implemented a capacity utilization and profitability improvement model for the facility. The model considered process throughput, recipe mixes, potential capital improvements, marketing factors, and new technology development. It was used to develop a plant expansion plan that maximized profitability given the market forecast. IMPACT also prepared an extensive cost estimate for the plant expansion to aid in the approval of the project.

Results

IMPACT’s model identified the critical process bottlenecks that would require upgrading in order to meet the company’s short and long term profitability goals. IMPACT also prepared preliminary designs and cost estimates for de-bottlenecking the facility. The profitability model has also become a fundamental tool in helping drive the company’s five year plan to gain market share, maximize the return on existing assets, and improve the overall profitability with several high-return capital investments.