Outsourcing of aerosol Manufacturing for a private equity owned chemical company:

Challenge:  Company experienced a major disruption in production due to a fire in its sole production facility.  High capital costs to rebuild, current outsourced production at high cost and low reliability.  Bill of materials and specifications incomplete or outdated.

Solution:  Multi-functional team established to explore make/buy evaluation determined that outsourcing all production would be most advantageous option and presented to company board and private equity ownership for approval. 

• Dedicated program manager appointed, teams updated master data, production was outsourced.
• Pre-incident performance exceeded by 15%.
• Material cost savings of 8%.
• Capital expenditure avoidance of over $15MM.
• Equipment sales of over $1MM.