CASE STUDY 1

Reducing Yield Losses & Improving Profitability

The Challenge

A commodity manufacturing company was facing continuous yield losses, which were impacting overall profitability and increasing raw material costs.

While the immediate assumption was that the issue was only within the manufacturing process, Patham India believed the problem needed a broader investigation.

Instead of focusing only on production, we analysed the entire value chain — from raw material sourcing to transportation, storage, processing, and finished goods management.

Our Approach

We conducted a detailed review across:

  • ✔ Raw material quality & specifications
  • ✔ Transportation systems
  • ✔ Storage methods for raw materials and finished goods
  • ✔ Process efficiency & material recovery
  • ✔ Finished goods management


Key Improvements Implemented

1. Raw Material Standardisation

The raw material supplier had a broad purity range, which caused inconsistency in production performance. We worked towards standardising specifications and improving raw material quality. Result: A minimum saving of 0.75% in raw material efficiency was achieved.

2. Smarter Transportation System

Evaporation and washing losses during transportation were contributing to material wastage. We recommended the use of insulated and dedicated tankers, reducing avoidable losses during transit. Result: An additional 0.2% reduction in losses.

3. Storage Optimization

Storage systems for raw materials and finished goods were redesigned with:
● Insulation systems
● Cooling mechanisms
● Recycling condensers This reduced material losses during storage. Result: Up to 0.5% monthly reduction in losses.

4. Process Optimization

We improved process efficiency by:
● Installing efficient condensers to recover unreacted materials
● Controlling cooling parameters for better condensation
● Tightening process controls for consistency Result: An average 0.5% improvement in yield.

5. Better Finished Goods Management

An additional finished product tank was installed to better manage varying product specifications and avoid unnecessary oversupply to customers. This improved inventory control and reduced product giveaway losses.


Business Impact

The combined improvements delivered significant results:

  • ✔ 1.5% reduction in raw material costs
  • ✔ Nearly 25% improvement in profitability
  • ✔ Investment recovered in less than 3 months

The required investments included:
● A few condensers
● One finished goods tank
● Transportation contract improvements
● Advisory support


Outcome:

A practical, low-investment intervention that created measurable financial impact and long-term operational improvement.