Applichem Pre Class

1. In a few sentences, describe Applichem’s business model.  

Applichem was a manufacturer of specialty chemicals. Release-ease was a specialty chemical that Applichem had developed in response to a customer’s request. Molds for plastic parts are precision stainless steel and they are difficult to clean. They are used repeatedly so that cause the bottleneck in the molding process.

1. Before the productivity survey, what were Applichem’s most significant challenges to continued growth and success?  Be brief.

Since each plant in Applichem run differently, each plant has different management process, management team. Between those different teams, there were no communication. The operating costs, production efficiency, product wastes were all different at each plant. From the previous process, the operation generate a lot of transportation cost.

1. For each of the challenges you listed above, which of the interventions described in “After the Productivity Survey” do you think address that challenge, if any?

The “After the productivity Survey” address all the challenges I listed above. The plan include that regular meeting among the different plant manager need to discuss about the “share best practice” to restructure and reallocate among the plants. Using the strategy, it will help the company to reduce the production waste and increase the production efficiency to meet each plant’s demand.

1. Based on the above, describe 4 (or more) metrics Spadaro should track to assess the status of operations across Applichem.  Be specific with respect to units, data-requirements, and frequency of tracking these metrics.  

1. Average demand of different plants per Quarter(dollar) in order to see the demand change.
2. Average cost by plant per quarter( dollar) in order to see the change in costs include labor cost, packaing costs. Etc.
3. Measuring the average capacity of each plant per quarter( pound)
4. Measuring the average waste generate by each plant (pound)