Project Objectives
A newly established plywood mill faced challenges with low efficiency, poor yield and multiple quality issues during the post ramp-up phase. Expanded operations were hindered by a lack of highly skilled staff, limited quality awareness, and insufficient training.
The mill operated in a challenging environment within an isolated country, with restricted local resources and a complicated supply chain. Furthermore, the business model relied on overly optimistic data, which did not align with the available wood quality.
The complexity of these issues required addressing fundamental aspects, including team assessment, task assignment, workload distribution, implementing a training program and establishing basic KPIs to monitor progress.
Key Challenges
• Low efficiency: Processes operated at very low efficiency due to frequent technical disruptions (breakdowns), low staff skill levels and the absence of a proper KPI system with effective monitoring and follow-up.
• Severe Quality Issues and Claims: A lack of quality awareness and an inadequate quality system (primarily paper-based) led to a poor understanding of how individual processes impacted final product quality. This resulted in severe customer claims and a loss of trust in product reliability.
• Poor Technical Condition of Machines: Despite being relatively new, the equipment was in poor condition due to past improper quick fixes and insufficient maintenance. This led to low technical availability, frequent downtimes and widespread quality issues across all processes.
Key Achievements
• Increased OEE by 41%.
• Increased Yield Ratio from 23% to 28% (global benchmark: 34%).
• Reduced WIP Inventory by 65%.
• Successfully Implemented International Industry Standards.
The project significantly improved operational performance, increasing OEE by 41%, yield ratio from 23% to 28% and reducing WIP inventory by 65%. Additionally, international industry standards were successfully implemented, enhancing overall efficiency and quality.
