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Valmet Mill Maintenance Outsourcing – Best Maintenance Practices in Pulp and Paper Mill to Improve Profitability Vijay Rathi.

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Presentation on theme: "Valmet Mill Maintenance Outsourcing – Best Maintenance Practices in Pulp and Paper Mill to Improve Profitability Vijay Rathi."— Presentation transcript:

1 Valmet Mill Maintenance Outsourcing – Best Maintenance Practices in Pulp and Paper Mill to Improve Profitability Vijay Rathi

2 Today’s challenges in Paper Making
Challenging global economic conditions Increasing environmental and safety requirements Rising raw material and energy costs Global industrial competition Skills shortages

3 Paper mill operational cost distribution Variable costs dominate
0.0% 1.4% 0.0% 2.7% 4.3% 0.0% 0.8% Cost breakdown Commission 0.0% Transportation 0.0% Variable costs Pulps 43.2% Chemicals 11.6% Energy 26.0% Water 9.9% Other variable costs 0.8% Fixed costs Personnel 4.3% Maintenance mat. 2.7% Overhead 1.4% Other fixed costs 0.0% Total costs % 9.9% 43.2 % To start with - and before we go any deeper to our environmental solutions - let’s discuss economy for a moment. The basis for any investment, including an environmental one, is a sound economic justification. And this picture says it all. When we study a paper mill’s operational cost distribution, it is easy to see that variable costs dominate. Pulps, chemicals, energy and water clearly represent a major part of the cost structure. When a mill can reduce the consumption of any of these production factors, it will, of course, protect the environment, and at the same time, the mill can increase profitability. Later, I will show some case example calculations about how big the savings can be. 26.0% 11.6%

4 Four steps to Maintenance management For lower maintenance costs
Corrective maintenance Downtime & quality costs Preventive maintenance Predictive maintenance Performance management Maintenance costs Unplanned repair costs So let’s take a look at the cost side. In addition to direct maintenance costs with different philosophies, this slide also shows the indirect cost of maintenance due to unplanned downtime costs and quality losses. You can see how the costs of planned (in green) and unplanned (in orange) maintenance, and the costs of lost production and quality vary according to different philosophies. The conclusion is that the lowest total cost of maintenance is achieved by employing the performance management philosophy. Planned maintenance costs Maintenance effectiveness

5 Maintenance efficiency Performance management compared to traditional concept
Hours / ton Traditional maintenance concept 0.6 Higher costs More corrective maintenance Lower technical availability 0.5 0.4 0.3 Long-term cost optimization Fewer failures and repairs Highest efficiency and quality 0.2 For a new mill, the performance management concept provides clearly defined preventive and predictive actions from startup onward. A new mill with new equipment is a very sophisticated unit, typically with a new operator team that is still gathering experience with the mill’s processes, machinery and systems. Strong proactive maintenance actions can be particularly beneficial under these circumstances, e.g. by revealing possible installation mistakes, operational improvement areas, and teething problems with equipment early. This leads to fewer unplanned shutdowns and lower corrective maintenance costs. With time, the new team gains more experience with their new process, tools and systems, and fine tunes its maintenance plans and process. At the same time, the efficiency of maintenance will improve and approach the global benchmarking level , providing optimized lifetime costs, fewer failures and repairs, as well as the highest efficiency and quality levels for the mill’s equipment. Valmet Mill Service performance management concept 0.1 Years 3 July, 2014 © Valmet | Author / Title

6 Valmet agreement services that help you to improve productivity
Availability Efficiency Risk control Maximize availability while optimizing costs Intelligent maintenance Operational excellence Warehouse inventory Optimize operations to reach set targets Production Raw materials Energy Resources Control risks that would have an adverse effect on a plant and/or business Asset value Safety Environment Competence

7 Maintenance agreement
− A systematic way to improve efficiency Agreement is a systematic approach to reach the set targets Cooperation starts with a thorough auditing phase, during which the development potential is studied and a development plan is prepared

8 Operational excellence through Agreement Management
Energy opportunities Energy efficiency solutions to help minimize energy consumption Material opportunities Technologies to reduce the use of fiber and chemicals, minimize waste and lengthen the lifetime of machinery Emissions opportunities Solutions to help comply with legislation and achieve sustainability targets Working environment opportunities Solutions for a safe and healthy workplace and improved usability to help increase productivity Water opportunities Water management solutions for decreased fresh water consumption and increased reuse of process waters with less effluent and lower costs All these provide solutions to improve customer profitability Here is the portfolio of our eco-efficiency opportunities. They cover energy efficiency opportunities (solutions to minimize energy consumption), material opportunities (technologies to use less or lower quality raw material) and water opportunities (water management solutions for lower fresh water consumption and recycling water fractions inside the mill). By maximizing the total efficiency of processes in all conditions By looking after the whole operating system in energy-intensive processes, not only the main machinery power, vacuum, ventilation, heat requirements, etc. vary a lot between different running situations  adaptability must be a built-in feature of systems optimized main machinery design minimizes power requirements and creates a base for energy savings Through efficient controlling principles between main machinery and servicing systems, and the right system design. As a full-scope supplier, Valmet has the know-how and technology to help you minimize life-cycle energy costs 8 Mill Improvements 8 8

9 Mill maintenance outsourcing - Cooperation concept
Customer No in-house maintenance personnel Production personnel perform contractually agreed preventive maintenance tasks Low and sustainable maintenance cost level Focus on process upkeep and efficiency One contract Common targets Valmet Mill Service Full maintenance responsibility Preventive maintenance Daily maintenance and shutdowns Spare parts management Development focus Personnel skills and working methods Preventive maintenance and equipment lifecycle Effective use of information systems (CMMS) In outsourcing Valmet takes full responsibility for all of the mill’s maintenance activities and has all permanent on-site maintenance personnel on Valmet payroll. The customer’s operators will be in charge of operator maintenance activities, which will be specified, managed and trained by Valmet. Valmet will set up maintenance following the previously mentioned principles, and recruit and train people as well as purchase the tools and machinery needed. From the customer’s point of view, maintenance is set up almost on a turnkey basis. The biggest remaining task for the customer is purchasing CMMS software and providing facilities for the maintenance organization. After startup Valmet will run maintenance based on the agreed performance management philosophy, providing the customer world-class maintenance. The results are followed using a number of KPIs (Key Performance Indicators). Valmet Roll maintenance Specialist knowledge and services Process development support Other suppliers Supplier network management Cost-effective long-term cooperation 3 July, 2014 © Valmet | Author / Title

10 Results through a unique combination of know-how
Valmet’s combination of machinery, automation, process and maintenance know-how results in: Flexibility and experience to offer customized service The right maintenance decisions to optimize maintenance costs Highest efficiency of operations based on process know- how 3 July, 2014 © Valmet | Author / Title

11 Maintenance and production efficiently integrated
Typical way Engineering Material mgmnt Purchasing Cleaning facilities Logistics Purchasing Maintenance Production Valmet way Engineering Material mgmnt Purchasing Cleaning facilities Operate and maintain team Logistics Purchasing Maintenance Production 3 July, 2014 © Valmet | Author / Title

12 Full maintenance concept - Clear process creates results
Maintenance audit Takeover and Change program Target operations Separate business operations 3 July, 2014 © Valmet | Author / Title

13 Professional maintenance audit - Content supports the future actions
We need to analyze Maintenance practices Production efficiency Maintenance costs We will propose Realistic targets Action plan 3 July, 2014 © Valmet | Author / Title

14 Practical Cases Approach
Developing existing maintenance operations Phase I Audit & analyze 1 m Define savings & improvement Potential Maintenance Audit Pre study Analyses of data Benchmarking Summary of conclusions Recommendations Presentation to mill management Scope of co-operation Proposal Content and scope Targets KPI’s Safety Maintenance strategy Maintenance resources Trade union issues Phase II Tailor made scope and co-operation model 6-12 m Agreement Kick-off Teams establishment Project manager Action plan Communication to organizations Change program Phase III Implementation 12 m New way to operate Implementation Maintenance management development (CMMS) Competence analyzes Training Motivation program New working methods Efficiency measurement RCM based analysis OEE development program Stabilizing operations Continuous improvement Evaluation of new way of operations Process development Quality support Safety development Network development Analysis of results New annual targets Partnership Phase IV Development 3 July, 2014 © Valmet | Author / Title

15 Step by step execution plan
Optimize Guaranteed results with minimum life cycle cost Valmet know how at the mill Risk sharing Technology updates for improved efficiency Predictable costs Best Practices Keep the existing machinery up and running Valmet maintenance procedures Follow-up and monitoring Improve Technology updates for improved efficiency Predictable costs Best Practices Keep the existing machinery up and running Valmet maintenance procedures Follow-up and monitoring Maintain Keep the existing machinery up and running Valmet maintenance procedures Follow-up and monitoring Maintain: Main purpose is to maintain the machinery Based on the fixed prices and scopes Improve: In addition there are development aspects included Commitment: In addition commitment to certain performance level and flat pricing / month Availability Efficiency Performance Mill Improvements

16 Maximise the production
Paper machine profitability potential Values from an implemented project ( EXP.150 KT/Y) More production by EUR 2.1 million Maximise the production + 1,200 k€ Broke => Prima + 920 k€ Fibre - 240 k€ Drying - 360 k€ MD broke - 340 k€ CD broke - 95 k€ Maintenence costs k€ Savings per year EUR 1.2 million in total Mill Improvements

17 360°Rolls Agreement How Valmet see the rolls enviorment in a Mill
Roll environment Roll maintenance Roll covers New rolls Doctoring On-site analyses and measurements Uhle boxes Spare parts Dryer and forming fabrics Shoe press belts Showers Process conditions Press felts Logistics

18 Valmet Mill Service Amcor Packaging Pty Ltd, Botany, Australia
Greenfield 345 kton/year containerboard mill Agreement started on July 12, 2011 Multi-year agreement including maintenance establishment, mill maintenance and management of improvement Areas of responsibility Mechanical, electrical and automation maintenance Roll maintenance Management of civil works Planning, management and implementation of improvement projects

19 Performance agreement Case Mondi Swiecie PM 7, Poland
Results through cooperation Performance agreement Case Mondi Swiecie PM 7, Poland Agreement period started: 2011 Agreement period: Active Targets Improve time efficiency Reduce specific energy consumption Results Time effiiciency has improved by about 7.5% since the agreement started Energy consumption has decreased by about 1% during 2012 Machine data • Liner/Fluting PM 7 • Production capacity ,000 t/year This slide can not be distributed • Grammage 75 – 145 g/m² • Design speed 1,800 m/min • Wire width 8,600 mm

20 Performance agreement Case Sappi Kangas, Finland
Results through cooperation Performance agreement Case Sappi Kangas, Finland Agreement period: Scope Project management Steering group Working groups for focused development areas Common database Remote services for specific areas Special maintenance packages Maintenance development and support Results Percentage of unplanned shutdowns due to maintenance reasons dropped continuously from 2.4% to 0.5% in 2004 The customer reduced the maintenance personnel by 50% during the agreement period M-real image bank Machine data • Coated fine paper, PM 4 • Production capacity ,000 t/year This slide can not be distributed • Grammage 65 – 90 g/m² • Design speed 1,300 m/min • Wire width 6,300 mm

21 Focus on Machine Performance and Productivity
Key results from co-operation with Valmet Nordic Paper Greåker and Säffle “Maintenance costs lowered in Greåker 20% and in Säffle 25%.” “The mill’s daily production increased in Greåker 30% and in Säffle 25%.” “Energy usage lowered with 40% in Greåker and 20% in Säffle.” Nordic Paper Greåker & Säffle Case Öysten Vedahl Mill Manager for Nordic Paper Greåker ( 2001 – 2010) Säffle (2005 – 2010) 3 July, 2014 © Valmet | Author / Title

22 Results and Discussion
UPM, Plattling, Germany MMS set up activities on schedule and recruited a very competent maintenance team.” - Caius Murtola, General Manager - ”We could not have set up the maintenance better ourselves.” - Mika Kämpe, Operations Manager - “Maintenance is a service function for the first time and not the main topic in the operations. I can concentrate on paper making.” - Olli Ylä-Jarkko, Production Manager PM 1 - 3 July, 2014 © Valmet | Author / Title

23 Summary Complete maintenance operations Skilled personnel
Standard operating procedures Operator maintenance Maintenance systems Preventive maintenance and shutdowns Task force programs Sourcing Key performance indicators Complete maintenance operations 3 July, 2014 © Valmet | Author / Title


25 Benchmarking (Example 150KT/Y WFU)
3 July, 2014 © Valmet | Author / Title

26 Benchmarking (Example 150KT/Y WFU)
3 July, 2014 © Valmet | Author / Title

27 Benchmarking (Example 150KT/Y WFU)
3 July, 2014 © Valmet | Author / Title

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