Capacity Analysis

Chemicals
 

The situation

A client in the chemicals industry needed help to manage demand for a new product mix.  DBA helped design a growth plan resulting in a 15% increase in capacity.

Our client faced the following challenges:

  • Original nameplate capacities could not be used as improvements were made to various production units over the years

  • After 4 years of declining output, the plant faced a new production target that was significantly higher than the most recent output

The DBA involvement

We provided an assessment of current manufacturing capacity, and identification and evaluation of low-cost incremental and capital-intensive breakthrough options for capacity growth, including:

  • Detailed analyses of historic overall equipment efficiency data

  • Integrated capacity modelling with update of operational assumptions

  • Calculation of baseline capacity and identification of process bottlenecks

  • Calculation of capacity shortfalls per product type

  • Identification of more than 30 incremental capacity growth options, with evaluation and selection of most preferred options

  • Identification and evaluation of more longer-term capital intensive capacity growth options

Key outcomes

  • Agreement on current baseline capacity

  • Selection of incremental growth options that increased overall capacity by nearly 15% at minimal capital expenditure

  • Incremental changes added sufficient capacity to cover sales forecast for next 5 years

  • Identification of changes to operational management to enable and sustain higher production levels

  • High CapEx longer-term capacity growth with potential of changing the industry to the benefit of our client