The document outlines a comprehensive methodology for identifying and implementing business improvement opportunities, focusing on validating business needs and streamlining processes. It includes specific steps such as establishing project teams, analyzing root causes, and developing solution plans to enhance effectiveness and achieve key performance indicators. Additionally, it emphasizes continuous improvement through structured evaluations, data analysis, and standardization of solutions.

1. Methodology Steps Objective Main activities potential tools and Techniques Key Deliverable
- Validate/ identify business opportunity (should
support BU/Dept target and KPI)
- Develop project team
- Define baseline & set target
- Validate/verify project registration
- To understand the process flow and IPO (Input,
Process, Output) indicator(s)
-Find all possible causes of the improvement
opportunity and narrow down the problem
- To analyze the findings (data & fact)
- Identify and validate the most influential factors
of challenges from all root causes of the
improvement opportunity
- Conduct testing on defined hipothesis in-relation
with evaluation step of main factors / support
- Collect data and analyse
- Identify and validate data
- Drawn up priority scale by graphical or diagram
- Data analysis
- Identify potential root causes
- Validate root causes
- Prioritize the root causes
- To easily plan the actions, use 5W (What, Why,
Who, When, Where) +2H (How, How much) and
put Measurement of Effectiveness indicators to
measure effectiveness of improvement plan
(solution) to address root cause
- Generate solution plans
- Determine measurement of effectiveness
- Appoint PIC of each solution plans
- Determine due date of action item
- Calculate solution cost
- Solution plan
- PIC of each solution activities
- Improvement cost
8 Steps PDCA for Improvement
- Find the improvement opportunity or theme to be
taken on
- Analyze the data to identify the improvement
opportunities
- Team commitment
- Baseline dan target
- Potential benefit
- Project Plan
- Identify Input, Process, Output indicator(s)
- Using Brainstorming technique to find the causes
- Classified the factor drivers
- Define hypotheses of the root causes
- Process flow
- Input, Process, Output indicator(s)
- Possible drivers
Step 1
Theme Identification
I Raisin g funds fo r
projects, a cquisit ion ,
WCa nd re- fin
1
Raise fun ding for projects, acqu isition,
working capital and r e-financing. (5%)
$M 75.71% 28 530 700 25 0
L MA$ M 97.02% 45 6.7 573 .1 590.7 643.7
FCF $M 57.86% 24 8.9 293 .5 507.3 358.139
Pulp (t ) 94.84% 1,825 ,470 1,925,2 81 2,030,00 0 2 ,020,000
Paper ( t) 104.65 % 347 ,539 366,2 84 350,00 0 400,000
Pulp $/t 101.47 % 199 197 199.9 19 1
Pap er $/t 485 pls he lp 415.2 TPL to calculate
Pulp% 100.00 % Overall 78% 80% Over all 80%
80%. Still
re le va nt for 2 006
KPI?
Pap er% 100.00 % Overall 92% 90% Over all 90%
90%. Still
re le va nt for 2 006
KPI?
Pulp $/t 99.78% 440 464 465
475. Still relevant
for KPI 2006?
Pap er $/t 100.13 % 750 761 760 73 0
MHW P+ % 101.09 % 91% 93% 92% 95%
ACC P+% 101.02 % 97% 99% 98% 98%
I. Impr ove org anisation
quality by creating
Reten tio n rate o f key person nel
( manage rs and ab ove) for A*, A, &B to be
% 97.98% 97% 97% >99% >99%
8
Successors ar e identified a nd read yf or
30 %of sup erintende nts and ab ove
po sition by the end o f Q4 (In donesia).
( 10%)
% 100.00% Not Available 30%
30% id entified &
rea dy
30%
9
Utiliza tion of Kerinci as lear ning grou nd for
oth er ope ration by Q4 b yh avin g 20 China
em ployees that h ave acquired needed
skills in targe tted are as. (10%)
#o f China
em ployees
Not Available FL/ TA to advise 20 2 0
200 6 Bu dg et2 005 Approx
Im prove over all on-time delive ry to pulp
an d paper customer s. (5%)
Benchma rk Aca cia 's pr ice and qua lity to
tha t of Aracruz/Eucalytus.(10 %)
Unit 2 004 Actu al
Org anizat ion al
L earn ing
( 40%)
7
II Developmen t of
technical, ma nagerial,
and leade rship
capabilities
In ternal Bus iness
Proce ss
( 20%)
I. Continuous
improve ment of quality
6
Achieve tar getted pu lp P+ g rade qu ality
fo r MHW and Acacia (10%)
Cus tomer
( 20%)
I. Impr ove image with
customer s, society &
employees b yb etter
environm ental and
social perfo rmance.
4
II. Price stability throug h
global positioning
5
Fin ancia l
( 20%)
II. Sustainable and
improving cash flow
gener ation
2
Achieve tar getted LM Aand net fr ee cash
flow. ( 10%)
F CF here is st ill
III. Continuou s
improve ment of vo lu me
and cost
3
Achieve tar getted pu lp production vo lu me
with tar getted d eliver ed cash cost,
ach ieve targette d paper produ ctio n
volum e with targett ed delivered ca sh cost.
( 5%)
20 05 Budg et
%
(2005
Appr ox vs
2005
Tar get)
Quad ran t
Crit ical Succe ss
Fa ctors
No. KPI
Invoiced pr ice
(MHW + ACC)
Invoiced Invoiced Invoiced
Invoiced price
(MH W + A C C)
I nvoice d price
( MH W + A CC )
Dep artme nt:
Pro jec tT yp e: T as k F orc e /SGA
Pro jec tRela te d: Q/C/D/S/M
Pro jec tStart Date:
( to bef ill edbyB CI Dept. )
Ap p rov als /Co ns en ts: Na me Sig n
Te am Me mbe r1
Te am Me mbe r2
Te am Me mbe r3
Te am Me mbe r4
Te am Me mbe r5
FO RM BC I - 0 04
R eg . N o:
In i ti a t iv e:
Bu si n es s U ni t :
Pro j ec t T it l e:
D at e:
CONTIN UOU S IMPROVE MENT - P ROJEC T REGISTR ATION
Wh at is th e c urre nt pe rf orm an ce m et ri c as b as el i ne ( e . g: C os t, V ol u me, Le ad t i me , Ma t eri al us ag e, et c) ? S t at e t h e p eri od .
Pro j ec t D es cri p ti o n ( I mp rov eme nt S ta t em en t) : S ta t e t he im pro ve men t t h at yo u w a nt t o ac hi e ve w i t h t h is p ro je ct .
Ho w do es th i s p roj ec t re la t e t o yo u rb u si ne ss u ni t ob j ec ti v e or b al an ce d sc ore ca rd?
Co mp l et i on Da t e:
Pro je ctL ea de r
S ig n
CI Spon so r/ B.U.He ad
Pro j ec t L ea de r:
Ho w mu ch d o y ou pro po se th at yo u c an s av e i n U S $ by s uc ce ss f ul l y ex ecu t i ng t h i s pro j ec t? P l ea se p ro vi de t h e s up po rt in g e qu at i on / fo rmu l a an d
cal c ul at i o ns . C ho o se t h e t yp e of sa vi n g w i t h reg ard t o bo t t om l i ne : D i rec t S a vi ng / I nd i rec t S av in g / I nt an g ib l e
Pro j ec t O b je ct i ve s: W h at is y ou r pro po se d i mp rov em en t t arg e t ? ( e .g : % co st red uc t io n, % pro d uc t io n v ol um e, % le ad ti me red uc ti o n, % ma te ri al s u sag e
red uc t io n, et c ).
Wh at ex te rna l s up p ort or t rai n in g w i l l t h e t ea m ne ed ?
Ho w mu ch i s t h e ex pe ns e ( b ud ge t ) re qu ire d ? ( if ap p li ca bl e )
Ack no wl ed ge d by
(F i nan ce & Acco un ti ng De pa rtme nt)
N am e
CICh amp io n /De pu ty
CICoo rdi na to r
Step 2
Analyze Opportunity
Drivers
MAN MACHINE
ENVIRONEMENTMATERIALMETHOD
MONEY
PROBLEM
FORM BCI - 002
Project Name:
Project Leader:
Initiatives:
Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 . . Wk20 Wk21 Wk22 Wk23 Wk24
Step 1
Step 2
Step 3
Step 4
D Step 5
C Step 6
Step 7
Step 8
Remarks
CONTINUOUS IMPROVEMENT - PROJECT PLAN
A
P
Time Based (Daily, Weekly or Monthly)
8 Steps
CLO2 Process Flow
ClO2 Plant 1. ClO2 Quantity
2. ClO2 Quality
1. Man
2. Machine
3. Material
4. Method
5. Environment
Input Process Output
Chlorate
Electrolyzer
Chlorate
Chiller
Chlorat e
Cooler
Chlorate
Filter
HCL Unit
ClO2
Generator
ClO2
Absorber
AC Power
Transformer
Rectifier
Chiller Unit
ClO2
Storage
HCl
Storage
StrongCl2
Purified
Salt
Chlorate
Electrolyzer
Chlorate
Chiller
Chlorat e
Cooler
Chlorate
Filter
HCL Unit
ClO2
Generator
ClO2
Absorber
AC Power
Transformer
Rectifier
Chiller Unit
ClO2
Storage
HCl
Storage
StrongCl2
Purified
Salt
Decompose
occurred here !
Bleaching
CLO2 Process Flow
ClO2 Plant 1. ClO2 Quantity
2. ClO2 Quality
1. Man
2. Machine
3. Material
4. Method
5. Environment
Input Process Output
ClO2 Plant 1. ClO2 Quantity
2. ClO2 Quality
1. Man
2. Machine
3. Material
4. Method
5. Environment
Input Process Output
Chlorate
Electrolyzer
Chlorate
Chiller
Chlorat e
Cooler
Chlorate
Filter
HCL Unit
ClO2
Generator
ClO2
Absorber
AC Power
Transformer
Rectifier
Chiller Unit
ClO2
Storage
HCl
Storage
StrongCl2
Purified
Salt
Chlorate
Electrolyzer
Chlorate
Chiller
Chlorat e
Cooler
Chlorate
Filter
HCL Unit
ClO2
Generator
ClO2
Absorber
AC Power
Transformer
Rectifier
Chiller Unit
ClO2
Storage
HCl
Storage
StrongCl2
Purified
Salt
Decompose
occurred here !
Chlorate
Electrolyzer
Chlorate
Chiller
Chlorat e
Cooler
Chlorate
Filter
HCL Unit
ClO2
Generator
ClO2
Absorber
AC Power
Transformer
Rectifier
Chiller Unit
ClO2
Storage
HCl
Storage
StrongCl2
Purified
Salt
Chlorate
Electrolyzer
Chlorate
Chiller
Chlorat e
Cooler
Chlorate
Filter
HCL Unit
ClO2
Generator
ClO2
Absorber
AC Power
Transformer
Rectifier
Chiller Unit
ClO2
Storage
HCl
Storage
StrongCl2
Purified
Salt
Decompose
occurred here !
Bleaching
Step 3
Identify Root Causes
Salt formation in
compartment,
decomposition
will more
frequently occur
Salt formation in
compartment,
decomposition
will more
frequently occur
Histogram Liquor Quality
0
3
6
9
12
15
18
21
24
43.4 -
46.5
46.5 -
49.6
49.6 -
52.7
52.7 -
55.8
55.4 -
58.5
58.4 -
61.5
61.4 -
64.5
64.4 -
67.5
67.4 -
70.5
70.4 -
73.6
Frekuensi
Histogram Liquor Quality
0
3
6
9
12
15
18
21
24
43.4 -
46.5
46.5 -
49.6
49.6 -
52.7
52.7 -
55.8
55.4 -
58.5
58.4 -
61.5
61.4 -
64.5
64.4 -
67.5
67.4 -
70.5
70.4 -
73.6
Frekuensi
Correlation Chart of ClO2 Strength to
Decomposition
0
4
8
12
16
20
0 20 40 60 80 100
ClO2 Strength
Decompostion
Step 4
Develop Improvement
Initiatives
What Why How MoE Who When Where How much
Factors Causes
Solution / Improvement
Plan
Measurement of
Effectiveness
PIC Due Date Location Cost
Method (Bad
Liquor Quality)
Steam bundle at Compartment
Replace steam bundle
with new material
Quantity leaking
steam tube
Budi H Feb, 2006 Gen 1, 2
Machine
Man
Material
Environtment
P
- to prevent recurrent/repeated problem and to
increase current standard
- Identify and develop replication &
standardization opportunities
- Integrate and manage solutions in daily work
process
- Process Control systems
- Process map and documentation
- Standard and procedure
- Training for new processes (if necessary)
-Identify next plan of improvement. (There are two
ways to determine next improvement : continue
the same theme/topic with higher target or change
to other topics/theme based on problem analysis)
- Identify next steps & plans for remaining
opportunities
- Next improvement opportunities (to ensure
PDCA wheel is continuously rolling)
- Project closure
- Visualize the implementation aactivities by
showing before -after condition (can be illustrated
with pictures, graph, diagram, data, etc.)
- Explain the effectiveness of actions.
- Implement the solution action
- Provide the before-after condition (photo taking,
graph, etc)
- Implementation milestone
- Before-after illustration
-To check improvement result and activity working
result :
- From set up target
- From dominant problems
- From dominant root cause
- From total performance
- Verify reduction in root cause resulted from
solution
- Identify if additional solutions are necessary to
achieve goal
- Explain the action results
- Verify actual benefit
- Improvement results
- Action impact/result explanation
- Actual benefit verified
Step 5
Implement Improvement
Intiatives
Before After
Leaking steam tube bundles
Action Result
Installed new steam bundles
Step 6
Check the Result
Decomposition Frequency
0
2
4
6
8
10
12
14
16
Freq. 3 9 15 6 10 6 9 0 0 0 1 2 2 3 0
Jul-0 5
Aug-
05
Sep-
0 5
Oct-
0 5
Nov-
05
De c-
05
Ja n-
06
Feb-
06
Mar-
0 6
Apr -
0 6
May-
06
Jun-
06
Jul-06
Aug-
06
Sep-
06
Implementation Start
Freq
0
10
20
30 N=100
74.5 79.5 8 4.5 8 9.5 94.5 99.5 104.5 109.5 114.5 119.5 124.5
=
X = 101
UCL
LCL
Time
CL
Step 7
Standardization
Step 8
Next Step
UCL
LCL
Time
CL
Improvement Action Standardization Remark
1. Steam bundle at Compartment
SOP: RPL - CM - 056 - PR
Preventive maintenance of Steam Bundle
See Appendix A
2.
3.
SOPContinuous Im prove ment Projec t(AGRC/BCI-00 2-PR)
SubmissionD ate:
Project Completion Date:
TeamM ember 6:
TeamM ember 7:
TeamM ember 8:
TeamM ember 9:
Team Member 10:
Re as on :
CI -C HAMPION
Name :
________________ ________________
________________ ________________
Review co mmen t:
BCID
Name _________________ Sign/ Date
________________
ITEM SC ORE
1.Res ults (40Points) 20
30
40
2. Ac tivity Mgmt 30
(50points) 50
5
10
Reward
N ote:
Only thoseprojectsw hichresultscannot be calculated (does not have direct& indirectnet savings), resultswillbe measured based onImprovement against the
baseline.
Project declare completed following this condition :
CI - SPON SOR
Name :
Sign/Date :Sign/Date :
Calendar of Events established
Regular review meetings take place& minutes produced
Total Score
Scoring byCI Champion
C IPR OJECT
Above25% - 50% ofbaseline
Above50%
8-stepPDCA Report&CI Project PlanCompleted
NetSav ing(Direc t& Indirect)
AboveUS$1Million
Abov e3% - 25% of bas eline
CONTINUOUS IMPROVEMENT -PROJECT COMPLETION AND SCORING FORM
TeamMember 5:
BusinessUnit:
ProjectTitle:
TeamMember 1:
ProjectType:
3.ReviewM gmt (10
Points)
Annualiz edNetSav ings; (Ac tualresult)
TeamMember 2:
TeamMember 3:
COMPULSORY SUBMIT TED DOCUMENT
PROJECT COMPLETIONSTATUS
Project completedontime(within ±1monthfrom completionsc hedule)
Improv ement (% ofbas eline)
CI Champion and CI Sponsor decisions for Motivational Incentiveamount paidare final
ProjectLeader:
Abov eUS$ 10k toUS$ 100k
Above US$100k to US$1,000k
AIMSM OT IVATIONAL REWARD SCORING (CI PROJ ECT)
TeamMember 4:
SAP ID GRAD E
SAP ID GR ADE
P roject Registr at ion 8 Steps PDC A Report Other supportingdocument (SOP, Minutesof Meeting, etc)
SGA TASK FORCE
Project is achieved the tar get, and the result is sustain on 3-months consecutive
Project is declare "complet ed"
Ver if ied
Need revision
Histogram Liquor Quality
0
3
6
9
12
15
18
21
24
43.4 -
4 6.5
46.5 -
49.6
49.6 -
5 2.7
52.7 -
55.8
55.4 -
5 8.5
58.4 -
61.5
6 1.4 -
64 .5
64 .4 -
67 .5
67.4 -
70.5
70.4 -
73.6
Frekuensi
Histogram Liquor Quality
0
3
6
9
12
15
18
21
24
43.4 -
4 6.5
46.5 -
49.6
49.6 -
5 2.7
52.7 -
55.8
55.4 -
5 8.5
58.4 -
61.5
6 1.4 -
64 .5
64 .4 -
67 .5
67.4 -
70.5
70.4 -
73.6
Frekuensi
D
C
A