The document summarizes a presentation given by Arvind Consulting Group on converting opportunities into economic benefits for a paper mill. The presentation addressed the current inefficient situations at the mill, the causes of those inefficiencies, and how to bridge the gap. It proposed setting the right performance measures and rewards, forming a focused improvement team, and implementing a three-dimensional structure of daily management systems, area effectiveness teams, and focused improvement projects to systematically eliminate hidden losses and inefficiencies. The approach aims to achieve improvements like 2-5% reduction in costs, 15-20% increase in production, and overall benefits ranging from 5-40% depending on the process.

1. Converting Opportunities into
Economic Benefits
Presented by
arvind consulting group
on
17th Aug 2018
at
IPPTA Zonal Seminar & Workshop

2. Agenda
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• Current state situations at paper mill
• Causes leading to the current situations
• How to bridge the gap
• Results achieved

3. Current state situations w r t operations of a paper mill
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•Frequent tripping
•RM management
•Feed recipe (Furnish)
balancing
•High power consumption
•Under optimized digester
cycle time
•Reduction in total
consumables cost
•Leakages and spillages
• High Inventory
•Variation in stock
consistency
•Low equipment Life
•High number of paper
breaks
•High number of breakdowns
•High downtime
•Low capacity utilization
•Weight (GSM) variation along
X, Y axis
•High changeover losses
•High changeover time
•Finished Paper wastage
•Errors in packing
•Packing material wastage
• Low Product Portfolio
profitability
•Inconsistent quality - creasing,
high COBB, dandy marks,
rough cutting size variation

4. How does rapid growth lets inefficiencies creep in
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Specialization Short term focus Services & utilities Over commitment Success
• Local Optima
• Not my monkey
not my circus
• My results are all
time best
• Capability and
synergy
• Weekly, monthly,
quarterly, half yearly
results
• Shareholder value law
• Urgent vs Important
• Measures
• Cost centres
• Insignificant,
Trivial, little,
slight, trifle, minor
• ‘Chalta Hai’
• Over booking
orders in peak
times
• We can produce
all that you need
• I have achieved
success all these
years by doing
things the way I
am
• Reluctance to
change

5. How to bridge the gap and prevent value leakages
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‘People behave the way they
are measured – you change
the measurement they change
their behaviour’
Set the Right measures, and along with that an
effective reward and recognition program

6. How to bridge the gap and prevent value leakages
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Form a focused team to harvest this
potential. Generally 2-4 people strong.
• The task of this team is to constantly steer all
efforts in the organization in the direction of the
companies vision.
• This team should focus on facilitating
identification and elimination of hidden losses via
analysis, solution design, implementation plan and
sustainability measures
• The team works very closely with the highest levels
of management and has the ability of an Chief
Expediting Officer

7. Power of Facilitation
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Facilitation: the process by which an
organism profits from the presence of
another, such as nurse plants that provide
shade for new seedlings or saplings.
Often people call this a ‘Manufacturing
Excellence’ cell or the ‘Business Excellence’
cell
DO NOT POLICE!
Making
people
aware
Provoking
people to
think
Building
capability
Giving
direction
Imbibe and
percolate
improvement
methodologies
Setting methods
for
sustainability
Supporting &
evaluating
analysis

8. A 3 dimensional improvement structure has been most effective
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Daily Management
Systems
(DMS)
Area
Effectiveness
Teams
(AET)
Focussed
Improvement
Projects
(FIP)
AET: Area Effectiveness Teams
Small area level focus
Tools – Daily checks, Abnormality Identification, House keeping,
Root cause analysis, FIR Logs etc..
DMS: Daily Management Systems
Department level focus
Tools – Management Information Systems, Suggestion
Management, Performance management, Problem Identification
and Prioritization
FIP: Focused Improvement Projects
High Impact Organizational Level focus
Tools – Management Information Systems,
Performance management, Problem Identification & Prioritization

9. 2-5% improvement in bottom line and 15-20% improvement in top line is commonly achieved
by systematic intervention
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• 20-40% improvement
• OEE
• Downtime
• Material Cost • 5-10% reduction
• Specific Power Consumption • 5-20% reduction
• Chemical Cost • 10-20% reduction
• 15-40% reduction
• OTIF • 20-35% improvement
• Throughput • 5-10 % improvement
Benefit *
Opportunity Head
• The results are based on proven systematic intervention in real scenario
• The benefits vary across machine and plant
Results Achieved

10. Thank you!
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“There lies a factory within a factory”
- Eli Goldratt