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API industrial engineering evaluation finds $7.9M increase in revenue
A producer of Active Pharmaceutical Ingredients (API) wanted a focused industrial engineering evaluation of one of their production buildings to identify improvement opportunities. The client was focused on solutions that could also be adopted in other areas of the plant. The 8-week evaluation included processing areas, logistics, inventory locations, operating strategies and information flows. We also dollarized the potential savings resulting from the improvement options.
This building would serve as a showcase model for future industrial engineering improvements at the plant.
Our Operations Improvement team identified bottlenecks and improvement opportunities in various areas of the building. For each improvement opportunity, we determined several potential solutions and then compared the options using value stream maps (VSMs) and discrete event simulation (DES) models. The DES model was used to run different ‘what-if’ scenarios and quantify savings. We also developed cost estimates for each solution.
We assessed current operating and logistics conditions to determine improvement opportunities, quantify savings and provide cost estimates for improvement options. To help our client make the best strategic decisions, we dollarized all improvement options as costs, including installation, construction and labor.
- Site visits, process and line observation, and data collection
- Understanding operations, system interactions and information flows
- Created VSMs and developed DES models for all products made in the building
- Identified improvement opportunities and quantified savings
- Provided cost estimates for all recommended options
Results from our 8-week study:
- Identified $7.9 million increase to annual revenue
- Identified improvement options which increase throughput, reduce cycle times and reduce operational inefficiencies
- Calculated staging space requirements for raw materials, intermediates and finished goods
- Recommended several new project opportunities to their internal teams
- Presented results and analysis to their site leadership team
How can you increase your revenue? Our consulting team can help you find out.