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A little regulation is probably good, but a lot of regulation chokes business to death.
Sorry about that, but the energy news is coming thick and fast for all of us these days. I am sure you remember old Jim telling you to carefully preserve your boilers, regardless of what form of energy they consume (I have also said these are the only types of idled assets to save). I hope you have heeded my advice. It appears the rapid transition to "Green Energy" sources appears to have some problems.
A tough subject and one all of us, not matter what side of the negotiating table we sit, should treat with respect, not forgetting our fiduciary duty.
Today, we need to know the delivery status of items way before their expected delivery date. We even need to know what ship they are on and where that ship is at any given moment. As shortages continue, this becomes even more important.
The purchasing department is an area of great opportunities. It is also a place where all the profits of the mill can be dribbled away, and a potential source of grossly unimaginable corruption. The purchasing department must be carefully managed.
As we wrap up this month on energy trends, there is one certainty over which you have complete control. That certainty is this...energy you don't use frees you from others' control. If we think of a pulp and paper mill as a "black box" this means that energy we use inside the mill that we generate ourselves frees us from the vagaries of the markets and external suppliers.
If you have read this column for any length of time, I am about to repeat something you have heard before. I am always in favor of removing obsolete and unused equipment quickly with one glaring exception. That exception is this: power plants.
The answer to dirty energy today seems to be electricity. For mobile transportation, cars and trucks, electricity moves the emissions from many points (tail pipes) to either single points (power stations) or theoretically no points (solar, wind and hydroelectric). The first thing we need to understand is that our choice of energy is cost, ease of use, and emotions. Notice that glaringly absent from this list is science. Energy choices have long since left science out of the equation.
Of course, it is. You ask how I can write a column about this. What we don't realize is how rapidly and how important energy has become to modern societies. The following is a column I wrote for my hometown newspaper about six months ago. While not about energy, it describes a real scenario, that while current, could have easily been widespread conditions about 70 years ago in the United States. The boiler, an important object in this piece, was manufactured only about sixty years ago.
On the Nip Impressions calendar, May is energy trends month. There is hardly a timelier topic, except perhaps food trends, but Nip Impressions does not cover food and my doctor wants me to lose ten pounds, so I try not to think about it. I would guess a good half of the headlines in the popular press today are about energy. These then fall into two categories, security of supply and what to do about, what I will call "dirty" energy.
I was doing some consulting in a mill a number of years ago that had a sign by their entrance that stated they had won some "safety award of the year" some years before the time I visited. I chided them and asked what they had been doing since the time of the award? Obviously, they had not won it again. Unfortunately, about five years after my visit, they had a triple fatality at that mill--contractors on an outage. There are a couple of issues I would like to unpack from my opening paragraph.
Many of us take OTC (Over The Counter) drugs. These can be abused, too. Especially on outages. I'll tell a story on myself...
There was a fatal automobile accident in our neighborhood lately that can serve as an excellent study on how we think when there is little time to sort out the situation. There are lessons here for all of us.
I like to remind people of the following resource any time I get a chance. It is a good way to start off safety month here at Paperitalo Publications. It is simply this. On our website, PaperMoney (www.globalpapermoney.com), we have been keeping track of the industry's safety performance. In its sixth year now, the department, "Reported Risks" is a current chronicle of "Risks: Fires, Fatalities and Catastrophes." It is a good learning resource and a source of endless safety meeting subjects.
It has been over a decade ago that I started talking about manufacturing your own spare parts with additive manufacturing. It is now moving from an interesting idea to a vital necessity. Between logistics problems and world turmoil, the spare parts needed for your machine may not be available. Most, except those of the most critical metallurgy, you can make in your own shop with less skills than a first-class welder or machinist.
Over the years, I have talked about this miserable old mill that I worked at long ago. When I was young, when I had a choice, I always ran towards opportunities that had lots of problems. My philosophy was that situations in trouble were the best way to advance your career. I have never been interested in career safety, it is boring and leads to complacency. So, I end up at this mill, in the prime of my career. It is large, ancient and a mess...
We have more aids for maintenance today than ever before. Detection instruments, storeroom software, built in monitors, training, you name it. Maintenance has never had more help than is available today. So, why do we still have maintenance failures?
Probably after August (Pulp Rats Month), Maintenance Month is my favorite month of the year on the Paperitalo editorial calendar. My dad was notorious for avoiding maintenance. It was an expense he loathed in the same manner as many mill managers and operations executives do. I followed his example for a while, saw the fruits of such policies and became a maintenance fanatic. A couple of old family incidents are in order.
I don't think most mills realize how close we are to interacting with robots every day. The box plants are ahead of us on this. The new Super Plants require about two thirds the employment for the same level of productivity. They are all 110" corrugators and they have a heavy component of robotics. I am expecting to see a flurry of box plant upgrades between now and 2030. Super plants won't be super then--they will be the norm. Back in the papermill, a couple of ready for here and now human aids are available.
In today's world, you may want to think long and hard about how the new or replacement piece of equipment (or other vital supplies) reach your mill. If you can afford to wait 12 - 18 weeks for those special refiner plates to arrive, put them on a ship. If you are losing production or quality every day because you do not have them, fly 'em, the most economical overall cost.
Back in the old days, we used the term "FOB." This meant "Freight on Board." There are other terms these days, but they mean nearly the same thing. One could purchase items "FOB seller's dock" or "FOB purchaser's dock." Internal logistics personnel have, for the last couple of decades, thought it smart to handle the logistics and freight themselves and purchase nearly everything "FOB seller's dock." They think they are saving money and justifying their existence. No more. In today's world, I would recommend that you purchase nearly everything, especially capital goods, "FOB purchaser's dock."
If you are like most facilities these days, your transportation system, outside the fence, if not in shambles, is at least limping along. What to do?
Give your operations and maintenance folks the help they need to make the project truly successful.
I've often been asked, "how often should our project team meet once our project is under way?" My answer is based on your average spend over the life of the project and at peak times (especially in rebuilds).
I have written assessments on lots of projects. Every one of them follows the same pattern in the same order. Three questions: 1. What are the markets? 2. What are the raw materials? 3. What are the assets (including tangible assets and human assets) that you place between (1) and (2) to have a successful project? If you don't start here, your chances of success are very low.
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