Raw material cost

production efficiency

By benchmarking theoretical and actual consumption, you can estimate possible savings. If they are significant; next step is to reduce the gap. Conduct a benchmarking per product and per process to decide where to focus. The more information you have, the easier it is to identify improvements. Raw material consumption can be reduced by reducing shrinkage and optimizing the production process, see efficiency examples.

If you recover raw material by distillation processes, significant savings can be gained through optimization. Lean Tech has managed projects where the raw material consumption was reduced by 470 000 $ annual by recovering raw materials.

Shrinkage of raw materials can end up as emission, through wastewater, air emission, waste to landfill or waste for recovery. If you want to reduce the waste, you need to control your emissions. For more information see "Emission control". Lean Tech perform benchmarking and process optimization. 

Energy cost

energy efficiency

Start by mapping and benchmarking today’s consumption: What is the energy consumption for different products? What about the different processes? How much energy do different machines and equipment utilize?

The more you know about your energy consumption, the easier it is to improve. If you miss the necessary measurements, you can calculate the theoretical consumption. Start by improving your most energy intensive processes. 

It can be profitable to invest in flow meters for steam or electricity meters to differentiate the consumption and identify the most energy intensive processes. Lean Tech has helped a company reduce the energy costs with 200 000 $ annual by mapping the consumption and optimizing the effectiveness of the production process. Lean Tech also assist with benchmarking energy consumption.