July 2007
By Gary DePaolo, regional supply chain manager, SP Newsprint
Newsprint companies are facing unprecedented competitive and market challenges that make it necessary to improve the efficiency of their operations. At SP Newsprint's Newberg, OR, operations, management is conquering these challenges by providing the highest quality products and service to its customers. One way we are committed to providing this excellent service is through creation of an efficient digital supply chain.
Product visibility is critical
Excellent customer service includes providing visibility of the product at all stages in the digital supply chain. When a customer calls needing information about a particular roll within an order, we are able to respond immediately using our Elixir manufacturing execution system (MES) from TietoEnator. This system can identify the roll number, reel number and quality specifications, including what train car the product is loaded on and when the customer can expect the delivery.
The strength of our MES is its ability to make products visible throughout the order, manufacturing, and delivery process. At the Newberg mill, the MES has improved communication between customer service and load planners in particular. Also, on a given day, our sales operations and mill production managers can see exactly what orders have come in, what orders are slated for production and the location of customer shipments.
The MES capabilities enable us to structure our own operations and efficiently feed digital information about products into our customers' supply chain management systems. Most of the company's customers receive products electronically, so the MES helps us comply with customers' process and system requirements.
Renewing the MES brings more benefits
SP Newsprint originally installed the Elixir MES in 1997, and we recently renewed the system with Elixir on the Microsoft Windows server operating system. The productivity and operational improvements from this upgrade were substantial, in large part due to the speed of the MES in comparison with the company's existing nine-year-old computer system.
Before the MES update, if customer service was doing load planning or running complex reports, the demands on the system would cause bottlenecks in mill production. Now, better support for customer service operations is an integral part of the MES. Quality data for customer orders is easily accessible so that customer service has access to product information throughout the manufacturing process.
The new Elixir system offered several advantages, including: reduced hardware maintenance costs; reduced hardware purchase costs; up-to-date, standards-based technology; a means to quickly and easily write reports with the SQL database; and no requirements for additional training.
For example, savings were found in lower costs for support, training and outside consulting. The up-to-date Windows server technology makes it easy to support the system. Because our information technology (IT) staff is well acquainted with Windows technology, upgrading the system involved no additional training. Software support costs have also decreased because the Windows server operating system makes it easier for our IT staff to support users themselves.
Flexibility for the future
Acceptance of the new system was immediate and painless. The MES functionality essentially remained the same, and the ease-of-use, control and flexibility provided to users made the results of the system upgrade felt immediately. Virtually no training was required for the mill floor users of the system, and the IT staff members appreciate the ability to write their own reports from the SQL database.
Also, upgrades now take less than 30 minutes, and they are completely seamless. The new platform provides for improved communication, testing and structure in system operations.
In the future, we look forward to making better use of MES features to exchange XML data with suppliers via the web portal. For example, exchanging information with trucking companies could precisely identify the location of products and provide access to on-time delivery information. We anticipate participating further in the ongoing development of the Elixir MES and making the best use of the system to increase the efficiency of SP Newsprint's digital supply chain.
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