By Andrew Hird, Director Global Pulp and Paper Business, Honeywell Process Solutions
BRUSSELS,
Nov. 2, 2009
(RISI) -
Tough economic times call for creative solutions. In these times, where access to capital can be difficult, all investments need to deliver substantial and quick return on investment. IT technologies are no different in this regard. Technologies like Manufacturing Execution Solutions (MES) are well acknowledged as excellent tools to streamline and standardize business processes, but they also need to deliver exceptional ROI.
A well-implemented MES can unlock hidden mill capacity, minimize waste, deliver production using the lowest cost assets and ensure paper mills deliver on-spec on-time product to their customers.
They are however highly dependant on access to reliable real-time data. These data in many paper mill environments are often challenging to collect and verify as accurate. They are often sourced from a myriad of interfaces including distributed and quality control systems, data historians, lab-entry and enterprise systems.
It is not always necessary to invest heavily in new IT technology, but rather to change the way in which information is presented and used as a mill's business objectives change. In current times, objectives around increasing production are less important and strategies that help mills become more profitable while increasing competitiveness are the new priority. An important key to gaining this advantage, therefore, will be mills getting the most value from the data and systems they already have.
The following are three strategies that mill management can use to optimize their operations and improve business performance:
Turning data into actionable information: In 2008 the world created more data than in all of preceding human history - however it is questionable if we became wiser for it.
Process industries are facing extraordinarily challenging times. This data overload, combined with an increasing shortage of skilled workers, a growing number of regulatory and environmental issues, and industry consolidation have hit the paper producers particularly hard.
To create more competitive and profitable mills, manufacturers must begin managing the data overload and turning data into real, actionable information. Replacing all the quality and mill control systems is often not practical - and you may still be left with just a different sea of data.
Mills need to manage data from various sources in a structured framework, collate and verify its accuracy and present it in a form enabling rapid and timely decision making. Modern MES tools together with KPI reporting and other visualization tools can help greatly.
Corporations like Stora Enso are intelligently using the data and creating highly automated systems to minimize human intervention and error. This is most evident at its Langenbrugge (Belgium) mill where it has completely automated its load optimization, transport carrier allocation and warehousing operations.
Implement a company-wide strategy that permits seamless growth: Perhaps the only thing more important than selecting a business or automation system capable of meeting current needs is ensuring it can easily and cost-effectively adapt to future needs.
A prime example of this strategy is JoutCon. Founded in 2007, the Finland-based company currently produces 25,000 tons a year via a pair of production lines.
JoutCon chose to deploy OptiVision MES at two of its production facilities to improve overall performance and maximize operational flow. Since the mill was new, it wanted to use the most up-to-date technology to meet current and future paper and board industry requirements. The MES software met JoutCon's needs with comprehensive standard functionality to manage the entire order-to-cash business cycle, especially their sheeting operations.
The MES system optimized production, fixed costs and variable costs by minimizing manpower requirements, allocating fixed assets, managing working
capital and prioritizing capital spending. Additionally, the system provided planning and scheduling at the corporate level and full manufacturing execution at the mill level.
Apply sustainability measures: In this age of corporate social responsibility, environmental sustainability is not just critical from a compliance perspective, it also often makes sound economic sense. Stricter regulations only strengthen the business case for going green. The first step is using IT tools to keep track of energy usage, benchmark performance, and then identify opportunities for improvement. There are then many existing technologies that can be applied to bring the performance gaps into compliance yielding significant returns to the business. Some examples are:
- Advanced process control applications can minimize raw material, fuel and other energy costs associated while maximizing production and yields.
- Simulation technology enables you to model complex production and energy circuits including supply and demand, heat integration systems and boiler feed water circuits, and combustion optimization that reduces emissions and fuel consumption.
- Wireless technology can be used to add additional energy performance measurements to places that are hard to reach, or where wiring costs are prohibitive.
Companies such as Catalyst Paper saved 2% in energy costs by implementing advanced process control, which translated to $750,000-$1,000,000/yr in savings. Others like Flambeau River Paper state that implementing a modern quality control system provides substantial energy savings that are significant and worth the investment. And Cartiere Burgo was able to reduce waste, as well as water and power consumption by using an integrated MES solution.
Successful operations
A mill's return on investment is realized by factors such as agility to respond to changes in demand, greater operational efficiency, better managed inventories, increased output of labor and assets, as well as accurate, on-time delivery. In today's highly competitive paper industry, mills are challenged to make accurate customer commitments and meet them 100% of the time, locate the best information available to make informed business decisions and manage inventories closer than ever before. These factors affect a mill's customer base, revenue stream and determine its competitive advantage: an important mix of elements in today's global economy.
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