Case Studies

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 Delta has realized savings through cost avoidance (risk management insurance and out-of-date material); a 25 to 30 percent overall reduction in material usage year over year; improved MSDS management; improved waste handling procedures; unit price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/Chemfil’s 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 GM’s 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.