Diagnostic Review for a Chemical Manufacturing Company

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Client Challenge

The client, an Industrial Products manufacturing company located in Gujarat, was one of the oldest manufacturers of soda ash in the country. It faced intense competition from end consumers like detergent manufacturers that integrated backward to manufacture soda ash. This resulted in low profitability for the client. To improve profitability, the top management requested UC Strategy to identify and evaluate the capital investments to be made and the initiatives to be taken for improving operating profit.

Our Approach

To develop the diagnostic review for the client, UC Strategy adopted the following approach:

  • Studied plant operations in detail
    • Plant layout
    • Work centers operations
    • Preventive maintenance
    • Raw material logistics
    • Inventory Management
    • Raw material quality analysis
  • Designed inventory norms for raw material, packaging material and stores & spares
  • Redesigned preventive maintenance tasks and schedules
  • Conducted bottleneck analysis of workstations and defined investment plans to debottleneck the plant
  • Identified potential savings in
    • Inventory management
    • De-bottleneck work center
    • Productivity improvement
  • The Marketing Strategy included analysis & recommendations in the following areas:

Our Impact

The client gained a better appreciation of the competitive forces at play within the industry and threats from different entities in the value chain and a plan to tackle these threats. Further, after diagnostic review of the client’s operational processes, UC Strategy provided the client with measures to improve efficiency and save costs. The savings from these measures was in the region of Rs. 1 crore.

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