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We have more aids for maintenance today than ever before. Detection instruments, storeroom software, built in monitors, training, you name it. Maintenance has never had more help than is available today. So, why do we still have maintenance failures?
Probably after August (Pulp Rats Month), Maintenance Month is my favorite month of the year on the Paperitalo editorial calendar. My dad was notorious for avoiding maintenance. It was an expense he loathed in the same manner as many mill managers and operations executives do. I followed his example for a while, saw the fruits of such policies and became a maintenance fanatic. A couple of old family incidents are in order.
I don't think most mills realize how close we are to interacting with robots every day. The box plants are ahead of us on this. The new Super Plants require about two thirds the employment for the same level of productivity. They are all 110" corrugators and they have a heavy component of robotics. I am expecting to see a flurry of box plant upgrades between now and 2030. Super plants won't be super then--they will be the norm. Back in the papermill, a couple of ready for here and now human aids are available.
In today's world, you may want to think long and hard about how the new or replacement piece of equipment (or other vital supplies) reach your mill. If you can afford to wait 12 - 18 weeks for those special refiner plates to arrive, put them on a ship. If you are losing production or quality every day because you do not have them, fly 'em, the most economical overall cost.
Back in the old days, we used the term "FOB." This meant "Freight on Board." There are other terms these days, but they mean nearly the same thing. One could purchase items "FOB seller's dock" or "FOB purchaser's dock." Internal logistics personnel have, for the last couple of decades, thought it smart to handle the logistics and freight themselves and purchase nearly everything "FOB seller's dock." They think they are saving money and justifying their existence. No more. In today's world, I would recommend that you purchase nearly everything, especially capital goods, "FOB purchaser's dock."
If you are like most facilities these days, your transportation system, outside the fence, if not in shambles, is at least limping along. What to do?
Give your operations and maintenance folks the help they need to make the project truly successful.
I've often been asked, "how often should our project team meet once our project is under way?" My answer is based on your average spend over the life of the project and at peak times (especially in rebuilds).
I have written assessments on lots of projects. Every one of them follows the same pattern in the same order. Three questions: 1. What are the markets? 2. What are the raw materials? 3. What are the assets (including tangible assets and human assets) that you place between (1) and (2) to have a successful project? If you don't start here, your chances of success are very low.
Have you ever had a conversation like this? "I was going to by a car from Brand X because it is cheaper and has more features than Brand Y." "Well, you obviously bought Brand Y. Why?" "Brand X didn't have any in stock and didn't know when they would get any." So, really, in the end, Brand X didn't mean anything because you could not get Brand X. Their price could have been twice the price or half the price of Brand Y, it just didn't make any difference. You may find yourself in this place with certain pieces of capital equipment now. You may have to become a "satisfier" instead of an "optimizer."
Most of the people I talk to today have not prepared or managed capital budgets under the conditions we find ourselves in now. Well, I saw my first capital budget in an industrial setting in March of 1970. Perhaps I can help you a bit--we had similar issues back then as those we are facing today--the administration in the White House in those days thought they could control inflation with price controls which caused me to miss two planned 25 cent raises as a co-op student, from $2.75 per hour, to $3.00 per hour to $3.25/hour, over a period of 18 months. Glad I could do my part to help tame inflation; as a student operating on the pay as you go plan (no loans), one makes too much money anyway.
I don't think this is a one size fits all question as you look at your marketing going forward. Some customers will be interested in your energy usage, others will be interested in what your products can do to save them costs in their manufacturing and logistics schemes. Please note that in all scenarios in this column, I will be talking primarily about business-to-business sales, not business to consumers.
I recently read an article in the Wall Street Journal which was discussing the write down coming in some energy assets, such as coal reserves, as the economy switches to "greener" energy sources. Like it or not, agree with it or not, there seems to be a move afoot to completely change our acceptable energy sources. You can interpret this as follows: energy is going to get more expensive, a lot more expensive, in this new world.
What concerns me today is that we seem to be more interested in the form of energy rather than its efficiency or cost. Energy has taken on somewhat of an "identity politics" persona. In earlier days, it was security of supply and efficiency. Today it is products of combustion that seems to garner the attention.
If you have read this column for any length of time, you know that old Jim has told you countless times to carefully mothball energy assets that are out of favor, for sooner or later, they will come back into fashion again. This statement is a corollary to my principle, all energy decisions are political. This calendar year has seen a sudden swing to an overwhelming global opinion that climate change is "settled science" and we can't decarbonize fast enough. Couple this with ESG (Environmental, Social and Corporate Governance) principles and boards of directors worldwide are moving at warp speed towards these extremely popular ideas.
The components and devices to do what I will describe here exists now. Someone just needs to assemble the bits and pieces.
If you think you can't innovate, the problem is purely mental. Creativity can be learned and you can use it in many ways to make your work environment more productive and safer.
Getting innovation right is crucial to optimizing profitability. Too soon, and the equipment may not be able to deliver as promised. Too late and your competition may have already eclipsed you.
There have been many attempts to institutionalize innovation. Sometimes the domiciles of higher education seem to think they have a lock on innovation capabilities. Likely, in some areas, they do. The innovation with near term payoff, however, often takes place at the millsite. It is an activity in which everyone can participate and can be made into a fun (and profitable) activity if structured correctly.
We are in the process of revitalizing and restarting the Light Green Machine Institute, a 501c3 educational institute we created back around 2008. The Light Green Machine Institute's mission statement is "Holistically reducing the environmental impact of pulp and paper processing."
The fourth step in quality is the training and morale of your personnel. All your employees need to be thoroughly trained for the job at hand and not only trained but taught to think so that they can take action when they see something occur that can affect quality.
The third step in Quality is the quality of your raw materials. Some might have thought this is the second step. No, it's the third, for you don't know the quality of raw materials required until you know the quality you are promising your customers.
The second step in Quality is a solid standard of product performance. If you are in the tissue and towel business, these are likely internal standards. If you are in the containerboard or other paper products businesses, these are likely recognized industry standards. You don't know what quality is if you can't define it.
The first step in the path to producing a quality product is the housekeeping in your facility. I know I sound like a broken record, but in truth, housekeeping is the first step in many actions in your mill or converting facility. I have never seen quality products consistently produced in dirty or sloppy facilities. It is just not possible.
If you are the top person on your site, get out of your office and visit your people regularly. I recommend 6 a.m. rounds, with flashlight and small notepad in hand to take notes on what you find (or put them on your phone). Shake hands, get to know your people. If you are over a large facility, don't do it all in a day, but make sure you visit every department at least once per week.
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