Increase the average yield of Release-ease from raw material A. As the the yield for raw material A is the main key performance indicator for the productions plants, Applichem need to standardize process in order to improve the average yield in Gary and Mexico Plant. One solution could be to share knowledge between the plants by transfer some employees from Japan and Germany to the Gary and Mexico plant in order to transfer knowledge and implement best manufacturing practices. Gary for instance has the lowest Yield with only 90.4% (see Chart XX). This means that the manufacturing processes are not robust enough to reduce the waste, obsolescence and reworking.
Another reason to justify the need of improvement is the difference in cost for Quality control and Waste treatment. Frankfurt plant, for instance, has the lowest cost and van be considering as benchmark to improve the overall quality system in the other plants. Some plants, for example, rework the material that was off-spec and sold at lower price. If this process is documented and quality controls are implemented the scrap, obsolescence and disposal cost can be reduced.…show more content… On one hand, Frankfurt has a utilization of 80% of it’s capacity but on the other hand Gary has a utilization of only 54% of it’s installed capacity. Gary plant has the highest utilities cost per manufacturing part because of the lack of utilization of the installed capacity. The total demand for North America region (29 million of pounds) can be, for instance, easily covered by the two manufacturing plants located in the north America region (Gary and Mexico) (see chart
