RLG International Results Stories
A Success Story at a Forest Products Company
Company Saves 78 Days of Lost Production Using TMP®
Key Objectives
The company is an international producer of wood-based panels with annual sales of approximately $1.3 billion and has 15 plants in Canada, the United States, and Europe. In 2004, the President and CEO asked for RLG's help in specifically improving shutdown performance across its North American mills. Over the years, it had scattered success with shutdowns and maintenance projects. This inconsistency across mills and even within individual mills created uncertainty as to whether projects would be done on schedule or on budget.
As a result, the company's track record of delivering capital projects and maintenance was unpredictable. In fact, the 13 projects done prior to June 2005 varied widely and, on average, were 19.6% over plan.
The CEO and President recognized this shortfall in his organization and wanted a process that would help his mills consistently deliver their projects on target. RLG proposed that the company engage an RLG performance coach to help them implement the Theoretical Maximum Performance process (TMP®). TMP® offered the deliverables it was looking for:
- High quality planning.
- Rigorous attention to detail.
- Stakeholder input.
- High levels of ownership by crews, suppliers, contractors, and planning teams.
- Structured post-project evaluation.
Starting in June 2005, RLG established a contract to accomplish the following:
- Minimize the duration of all scheduled maintenance work by executing a quality plan through involvement and ownership of all participants.
- Use the TMP® process to plan and execute planned work.
- Teach the skills necessary and coach leaders to sustain the TMP® process.
Using the TMP® process, the 19 projects done after June 2005 showed a dramatic change. Not only did they come within 1% of plan, but they were also much more predictable. The tighter variation resulted in the company having greater confidence in their plans while assuring their customers, suppliers, and shareholders that they would meet their commitments.
Project Results
Overall, the TMP® process helped save over 78 days of lost production in the past 3.5 years, resulting in an ROI of 7.1 to 1. Among the specific highlights of the project:
- A Texas energy system project was delivered 31% ahead of baseline with no recordables.
- Weekly dryer cleaning time was cut by 49% in Alabama.
- Eight-week Mississippi press rebuild.
- completed on budget, 20% ahead of baseline with no recordables.
- Six-month South Carolina press enclosure project completed on budget, 8% ahead of baseline, with no recordables and production ramp-up ahead of schedule.
The TMP® culture has permeated every aspect of operations. From annual shutdowns to recurring maintenance tasks, from shutting down to starting up mills, and capital projects - all have benefited from the TMP® approach. Across mills, employees refer to "TMPing" a job they have coming up. Even the company's core contractors have benefited from the process, often helping drive the effort to TMP® their jobs.
Testimonials
"TMP® has changed the whole way I look at planning. I don't even remember how we used to do it."
Production Manager