A TOTAL BUSINESS COST APPROACH

Over the past decade, the Aluminium Industry in Australia has focused extensively on removing ongoing costs from the business, historically through raw materials, administration, labour and other non-productive expenses. In recognition of this 'slash and burn' approach, characterized by Al Dunlap, the Fuchs total business approach, through Chemical Process Management has achieved ongoing, year-on-year, cost reductions in a multitude of ways. This unique approach, which is a formal, technical process, characterizes a partnership and strategic alliance, providing customers solutions both immediate and into the future. The need to move to a Chemical Process Management approach is clearly evident due to spiraling costs and productivity improvement requirements. This process allows for an understanding and association of where the true costs lie within the business, emphasizing that labour-intensive processes, such as materials handling, have historically been linked to a relatively high cost to the process. The Chemical Process Management programs that have been successfully implemented remove the focus on price per unit, instead capturing the overall project costs to identify their impact on true costs. The program serves as a continuous improvement initiative designed to suit the specific needs of users.