Case Studies
Daimler Chrysler, Newark Assembly Plant

Summary

DaimlerChrysler’s experience with chemical management services began with a facility-initiated program at the Newark, Delaware Assembly Plant in January 1999. In its first year, the program reduced chemical unit costs by 29% and continues to reduce unit costs annually. Due to the success of the Newark chemical management program, DaimlerChrysler created the template for the Total Chemical Management (TCM) corporate-wide program. TCM now includes 11 Chrysler assembly plants.

Name of Program
Total Chemical Management

Program Start Date
Current contract initiated January 2002 with Haas Corporation

Chemical Footprint
"Non-productive" chemicals such as lubricants, oils, greases, water treatment chemicals, solvents, maintenance chemicals, cleansers, and other miscellaneous chemicals.

Contract Structure (Current)

• "Fixed and Variable," sliding scale which adjusts for changing production volume

• Specified yearly cost reductions for 3-year cycle

• Greater than specified cost reductions go to supplier as performance incentive

Performance Expectations

• Reduce chemical cost

• Reduce number of chemical suppliers to one CMS provider

• Maintain quality

• No increase to CO3 levels

• Decrease chemical use when possible

• Make supplier accountable for tasks such as material approval, chemical inspection, background research, finding new materials

Provider Services

• 2 full-time Haas TCM personnel onsite

• Purchasing

• Delivery

• Inventory management, including maintenance of min/max levels for certain chemicals and Certificate of Analysis for all materials

• Data collection and information systems support

• EHS report generation

• Hazardous waste management for solvents

• Continuous communication and new materials research

Benefits

• 17-18% cost reductions in the first year (2002) of contract with Haas TCM; continuous reductions anticipated

• Chrysler staff relieved of chemical management tasks, allowing for more focus on core competencies

• Able to track chemical usage per unit produced

• Chrysler won the 2001 Environmental Leadership Award for its chemical management program in 11 North American assembly plants

Follow the links below for additional information: