Manufacturing Assistance Program

Plant Layout Case Study: Maryland Chemical (Baltimore)

Company Profile
Maryland Chemical Company, Inc. has supplied a wide variety of chemical products to their industry and government customers in the Mid-Atlantic region since 1953. Their reputation for providing quality products, timely deliveries, and technical assistance is well known. Maryland Chemical warehouses liquid and dry products in a wide variety of packages to fit their customer's needs.<br><br>As members of the National Association of Chemical Distributors (NACD) and as a participant in the Responsible Distribution Process, Maryland Chemical is committed to chemical product stewardship and responsible distribution in every phase of chemical handling, storage, transportation and disposal. Maryland Chemical also holds the Underwriters Laboratories Incorporated certificate of document compliance verification, which was awarded after an audit of their written policies and procedures. The company has an uncompromising commitment to quality and a keen customer focus. They have faced many changes since their inception and have been able to successfully adapt to meet ever changing market demand.

Situation
The City of Baltimore wanted to acquire Maryland Chemical's existing site for a redevelopment effort. The company had to move their chemical distribution and manufacturing center operations to a new facility. They looked at this forced changed as an opportunity to create a process-driven, 21st Century company with improved operational efficiency and enhanced ability to provide exceptional value for their customers. UMMAP was contacted to assist the company with the relocation and process improvement effort by providing a multi-disciplinary perspective gained from working with various industries, and by incorporation of best practices suitable for Maryland Chemical's processes.

Solution
The company's main objectives during the relocation were to leave behind their inefficiencies, and to streamline their warehousing and manufacturing operations. They had already selected a site as their new facility. The existing site required extensive building alterations to meet the company's needs. UMMAP worked closely with the company, in an iterative process, to develop and analyze alternative layouts to improve operations. A comprehensive process based upon proven Lean Manufacturing principles for eliminating waste, accelerating throughput and increasing productivity was used to develop the final layout for the new facility.

Results
The solution that UMMAP developed in conjunction with Maryland Chemical Company Inc. served as the baseline for the architectural design of the building and site. This solution provided the company with the key information needed to cost effectively work with the architect, building contractors and others to successfully complete this $3.5 million project. The company estimated that working closely with UMMAP enabled them to avoid unnecessary investments totaling $500,000. The manufacturing and warehousing operations are now more streamlined resulting in higher productivity with an estimated cost savings of $250,000. Operations are also more visual, providing management with the ability to assess status more quickly. Having a well organized facility with improved process flows has set the foundation to enable the company to continue to improve their operations by incorporating additional Lean Manufacturing Principles.

Testimonial
"It was through an introduction by Baltimore Development Corporation to Mr. Bob Hannon at Department of Business and Economic Development, that Maryland Chemical was referred to the wonderful resource and people of University of Maryland Manufacturing Assistance Program (UMMAP) for our new plant layout project. Our challenge in moving was to create a state of the art facility for chemical distribution that would address our unique requirements for efficiency, safe handling and environmental protection. Our project with UMMAP brought professionals with a multi-disciplinary perspective and in-depth best practices knowledge who taught us how to apply LEAN principles to distribution, production and office processes! UMMAP has helped Maryland Chemical transform our operations which provides us with the springboard for growth and future success."
—Jeanette Partlow, President, Maryland Chemical Company, Inc.

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