Founded in 1971, Troy Chemical Industries specializes in the manufacturing, packaging and shipping of chemical specialty products for metal pretreatment, private-label/toll blending, food processing, and pulp and paper industries.

Troy Chemical outgrew its existing 28,920 square foot facility manufacturing facility located in Burton, Ohio. While growth is an important sign of a healthy business, it also meant the need to find and relocate to a new facility to accommodate larger operations – which also means new and different expenses.

ROI calculations helped Troy Chemical realize that moving into a new space would not make financial sense. This is when the manufacturer’s leadership reached out to MAGNET’s Operations Excellence team to learn how it could help reconfigure their space and a nearby 9,600 square foot facility to provide new efficiencies and space to handle future growth.

The Operations experts used this approach to develop a new highly efficient layout:

1. Current state understanding: The MAGNET team observed the current operations to gain an understanding of the operations
2. Created process flow maps and spaghetti diagrams, which capture the basic flow of people and processes
3. Gathered key metrics of current plant, including travel distances between machines, inventory and space requirements
4. Created current state drawing and future state concept drawings (several concepts were created, evaluated and discussed with the Troy Chemical leadership team)
5. A detailed final future state drawing was created with improved flow and efficiencies.

“MAGNET provided us support, knowledge and most importantly, a plan moving forward,” Troy Chemical President Ted Bunton said. “No one on our team had this type of knowledge, so [being able to] lean on MAGNET and their resources was huge. They are readily available and are an excellent source of information for all aspects of our business.”

The final product has had significant impact on Troy Chemical’s business, including:

• Increased/Retained Sales: $1.5M
• Increased/Retained Jobs: 7
• Cost Savings: $85k
• New Investment in Products and Services: $1M
• New Investment in Plant and Equipment: $500k

Check out the full case study here.