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What is Chemtek?

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Introduction What is Chemtek? Chemtek was founded in 1991. Since then it has grown by an average of 25% year on year. In the summer of 1999 it moved to larger, brand new, purpose built premises located in Coventry. Just 18 months after the move, unprecedented sales growth has already led to a twofold expansion in the size of the factory, enabling them to custom design their production processes to combine optimum efficiency with flexibility. Production and Quality are inseparable. Chemtek's integrated quality management system enables them to achieve unrivalled quality across a huge variety of products and has won praise from all of its auditors. A team of people has built Chemtek's success via a passion for creativity and attention to detail. They aim to keep customers at the forefront of their business by combining market awareness and an original approach. New Product Development is the driving force behind the creation of new market opportunities. Their Technical Department is constantly evaluating competitor samples from all over Europe and the UK, benchmark testing against the leading performers, and developing formulations that surpass them. They are able to customise solutions to tailor fit any brief, and continually evolve existing products to offer 'new improved' formulas, innovative variants and exciting range extensions. Geographically they could not be more conveniently located. Based in Coventry, right at the centre of the UK, they have the in-built advantage of being within minutes of six major motorways enabling them to offer an efficient and speedy distribution service. A clear description and explanation of Chemtek's type of ownership (E1) Chemtek are a private limited company (plc). Chemtek is limited because it's owners have limited liability. This means that the shareholders buy shares in the company, and their liability (for company debts) is limited to the amount they used to buy their shares. The shareholders can only lose what they have put into these shares. ...read more.


C1 -Make Judgements about how successfully the business is meeting its objectives The business has two distinct sets of objectives; Long term strategic objectives - statements that portray the place the business wants to get to, and short term annual objectives: statements that describe the path they will follow in a specific year. These long and short term objectives support a vision that aims to double the size of the business in the next 3 years (beginning in Jan 2001) to become a clear Number 3 behind Jeyes and McBride's. As outlined in section E2 they have four strategic objectives: 1. To double their share in the retail sector by focussing on the development of washing liquid, trigger sprays, shampoos and conditioners. 2. Broaden their business into the professional cleaning market through the launch of recognised cleaning brands. 3. Increase their business in the contract packing market by developing relationships that result in winning business with major global branded businesses. 4. Actively seek out strategic acquisition opportunities in the UK and Europe. To support these strategic objectives a number of specific annual objectives were laid out through the budgeting process for 2003. These were: 1. To grow the businesses turnover (Net Sales Value (NSV)) from �12.32m to �14.8m - 20% increase 2. To increase the bottle volume from 23.3m bottles to 29.6m bottles - 26.6% increase 3. To increase Management Net Profit (MNP) from �880k to �1.171m - 33.1% increase 4. To improve the Net Margin from 7.1% to 7.9% These top line annual business objectives are designed to provide a stepping stone to the overall strategic business objectives of doubling in size over the next 3 years. Supporting these top line objectives were a number of other KPI's (key Performance Indicators) that ensured the health of the business and included elements of cash flow, stock holding, new business leads, staff turnover and absence. ...read more.


Establishing an estimate of the costs for common/frequent operational failures focuses attention of areas which most merit quality/ management review. This process would then highlight a number of high priority improvement initiatives. Continued COQ analysis would then gauge the success of those initiatives and highlight new ones. Initiatives are likely to come under the following categories: Supplier Management Costs associated with defective materials/late deliveries/batch rejections etc. would form a critical element of supplier evaluation. This in turn would lead to more careful pre-selection/appointment of suppliers so that only those operations which were capable of matching Chemteks requirements were seslected. Supplier performance would become an ongoing element of business management with regular review meetings being used to force changes in suppliers own practices/quality processes. As supplier performance improves COQ associated with their performance will fall with the associated benefit of relaxed QC inspection on their materials. Management of Product Design COQ analysis would also highlight costs associated with poor design of products and production methods. This is turn would initiate a series of corrective projects to improve the manufacture of existing products. But more significantly lessons learned from this exercise could then be used to * ensure most efficient order of addition is designed in collaboration with the production department prior to launch. * create tighter development guidelines to ensure that products emerging form the development department were designed to minimise production/quality failures. * ensure careful design of QC test specifications to ensure that testing is minimised but still ensured product safety and quality. Production delays due to QC inspection minimised. Delegate Ownership of process quality to production operatives Training for production operatives in critical elements of quality within their roles would engender an awareness of and empowerment to suggest and implement changes to working practice. Leading to improved product quality and speed. Implementation of SPC (statistical process control) and relevant training would enable production operatives to monitor critical production parameters spotting where a process was drifting before it went out of spec. Simple quality control tests could be delegated to trained production operatives to reduce delays associated with waiting for QC. ...read more.

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