The Chemical Strategies
Partnership has collaborated in-depth with a number of companies to develop
CMS programs. Following are summaries of four case studies.
* Delta Airlines, Inc.
Delta Airlines began its CMS program in 1995. The program covers all stock
and non-stock materials system-wide, as well as gases. Its supplier, Interface
LLC Chemical Management, is paid a management fee and both partners share
process efficiency savings. Delta has realized savings through cost avoidance
(risk management insurance and out-of-date material); a 25 to 30 percent
overall reduction in material usage year over year; improved MSDS management;
improved waste handling procedures; unit price reductions; and overall
improvement in material control of items being purchased.
* Ford Taurus
Ford Motor Co.s relationship with PPG/Chemfil dates back to 1993.
PPG/Chemfil is responsible for all chemicals in its Chicago, IL, Taurus
assembly plant excluding paints, sealers and lubricants. Because PPG/Chemfils
fee is fixed per unit of production, it works continually to improve chemical
use efficiency. Specific benefits that Ford has gained include: reduction
of VOC emissions by 57 percent in 18 months; reduced wastewater sludge
generation by 27 percent,
saving over $50,000 a year; improved product finish quality; improved
inventory control and reduced inventory costs; steady or declining chemical
costs; easier compliance reporting; and improved health and safety protection.
* Raytheon Systems Co.
Raytheon entered into a comprehensive, far-reaching partnership with its
service provider, Radian International LLC, in May 1999.
The five-year contract covers the entire life cycle of chemical
management for all chemicals and gases including procurement, inventory,
delivery, waste disposal and data management. The
contract includes incentives for gain sharing or shared savings,
for reductions in chemical use and purchase price and improved process
efficiency. To date, among the benefits Raytheon reports are: a 71 percent
decrease in paint waste; a 15.5 percent commodity savings; a reduction
in inventory turns from three to four months to one week; a reduction
in square footage from 67,000 to 17,000; and a reduction in scrap from
$750,000 a year to $62,000 a year.
* General Motors
General Motors and BetzDearborn have had a shared savings
partnership since 1991. BetzDearborn serves as a Tier 1 supplier
for wastewater treatment, paint detackification, power house,
maintenance paints and solvent chemical services at GMs Janesville,
WI, truck and bus plant. With services based on a fixed fee per unit
of production, the Chemical Management Program has produced substantial
savings through reductions in chemical use and improved chemical management.
Specific benefits include: over $1 million in savings; an eight percent
decrease in chemical costs per vehicle
(first three years) with significant expanded services; a 78 percent reduction
in paint inventory and a 50 percent reduction in paint use; improved health
and safety protection; and chemical tracking for easier compliance reporting.