Управленческий консалтинг

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Projects

Projects

Projects

Operational efficiency improvement of chemical company

CLIENT:

Chemical company in Ukraine

PROBLEM:

Being in competition with major international manufacturers, the company has lost a significant part of its global bromine market share. This was the result of using obsolete technologies combined with the depletion of sources of raw materials and a decrease in market prices.

DELIVERABLES:

  • Reduction of production costs.

  • Increased production capacity.

SOLUTION:

In-depth research had been conducted to determine the nature of the interrelation between specific physical, chemical, engineering and technical factors, and the final financial performance of the company. Its findings indicated that company’s management had long used the wrong model focused on reducing the cost of raw materials instead of the overall operating efficiency. This led to a dramatic increase in costs leading to a loss of competitiveness.

The next step was to develop recommendations for choosing the operational model that would minimize specific production costs and allow increasing the production capacity.

RESULTS:

  • Production capacity of the enterprise increased in 1.5 times;

  • The sharp decline in energy consumption, coupled with increased productivity;

  • A twofold reduction in direct costs per 1 ton of product.


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