Olin Chemical Railways Logistics Study ( McIntoch, AL plant)

Company Profile

Olin is one of the world's best basic materials companies and a leading North American producer of copper alloys, ammunition and chlorine and caustic soda. In 2005, Olin posted sales of approximately $2.4 billion. The company has approximately 5,800 employees working in the United States. Olin's McIntosh Plant produces chlorine, caustic soda, sodium hypochlorite, dilute sulfuric acid, hydrogen (sold to the local Praxair plant for use as rocket fuel) and salt.

Situation

Olin wanted a study performed on whether and how much it would benefit the company to reconfigure the rail system within the plant. More specifically, they wanted to discover if they could increase the throughput of the chlorine loading process by making changes to the rail layout that leads them in and out of the inspection and cleaning station and finally into loading.

Solution

Using AutoCAD and simulation software (ProModel), APC/ATN-UA modeled three alternative layout solutions as well as the current layout and evaluated each. These were then presented to Olin to be graded on feasibility, cost and effectiveness. After an alternative was chosen the simulations were compared to each other and the pros and cons of each were presented to upper management.

Results

Using the alternative layout, the throughput for the process would be almost doubled. Also, the worker time in the inspection stations would be used more efficiently. They would also gain an all forward movement so that not track would be wasted, thus giving them more room to store cars. As of now the plan to make the changes has been entered into the department’s budget and in under review for implementation.