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
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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
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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
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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
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12. Full maintenance concept - Clear process creates results
Maintenance audit
Takeover and Change program
Target operations
Separate business operations
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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
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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
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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)
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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
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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
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25. Benchmarking (Example 150KT/Y WFU)
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26. Benchmarking (Example 150KT/Y WFU)
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27. Benchmarking (Example 150KT/Y WFU)
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