Batch sizing strategy & production load leveling in a multi-step chemical manufacturing process

In the last couple of years Eastman Kodak Company went through major changes in its strategic direction. The same disruptive technologies that they helped develop for digital imaging have shaped a new industry, and the market requirements and preferences for photography have changed dramatically. Some of the tightly held complementary assets that gave Kodak a competitive advantage are no longer as critical as were in the past. Kodak management has set a very strong emphasis on running a lean operation. At the same time, executive management has set very aggressive targets for inventory reduction and productivity increase in the manufacturing units. Demand for chemicals used in film and paper for silver halide-based photography has steadily decreased in the last decade. There is growing pressure to increase inventory turns in production processes that are not as profitable as they were ten to twenty years ago. Management is faced with the need to implement aggressive tactics that minimize inventories and lower costs. Continuous batch size reduction is one of the lean manufacturing principles that manufacturers of discrete parts have successfully used to drive operational improvements and that Kodak is pursuing as well. This thesis takes a closer look at the differences between discrete and batch chemical manufacturers. It describes the considerations and real challenges in analyzing batch sizing decisions for chemical plants that have been operating for several years. In general, for Kodak's chemical manufacturing processes, large batches are needed to reduce total manufacturing costs.

Department dc:contributor.department

Leaders for Manufacturing Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2005

Author dc:creator

• Mazariegos, Carlos

Advisor dc:contributor.advisor

• Stephen Graves and Gregory McRae.

• Sloan School of Management.
• Chemical Engineering.
• Leaders for Manufacturing Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/34842

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/34842