Enhancing Productivity in the Chemical Industry through LMS: Insights from Bangladesh’s DMP Project

Over the past decade, Bangladesh has seen a significant rise in the use of imported chemicals, which accounted for 70% of the demand and 3.5% of the total import value just before the pandemic. The chemical industry faces several challenges, including the absence of a strong legal framework for supervision and chemical inventory management.

A Development of Demonstration Companies (DMP) project on the Application of Lean Management Systems (LMS) in the Chemical Industry was implemented by the NPO Bangladesh and APO Secretariat from July 2023-September 2024. The project aimed to establish demonstration companies in the adoption of LMS to improve productivity by reducing costs and waste while enhancing their production processes in the chemical industry. Three companies under the Bangladesh Chemical Industries Corporation (BCIC), specifically Bangladesh Insulator & Sanitaryware Factory Ltd. (BISFL), TSP Complex Ltd. (TSP), and DAP Fertilizer Company Limited (DAPFCL), participated in this project under the guidance of a Japanese resource person.

The project successfully introduced key LMS concepts and methods, including 5S, 4M, the 7 Wastes, Kanban, TPM, Value Stream Mapping (VSM), Kaizen, and Just in Time (JIT), to the three companies. These methodologies helped the participating companies to systematically identify and address bottlenecks in their productivity and achieve remarkable results. Notably, BISFL saw an 18% reduction in rejection rates, TSP's production rate surged by 160%, and DAPFCL enhanced its cooling and dilution efficiency dramatically. The LMS concepts continue to be shared and adopted by the companies to make continuous improvements.

A dissemination conference was held in hybrid modality on 4 September to introduce the project's success to approximately 100 participants from ministries, agencies, and SMEs in Bangladesh. Its successes not only demonstrate benefits of LMS in terms of enhancing industrial efficiency but also serve as role models for other sectors in Bangladesh to follow. By continuing to share these successes and encouraging the adoption of similar practices, there is potential to create long-lasting benefits, leading to a more sustainable and efficient industrial environment.