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

Valmet Mill Maintenance Outsourcing – Best Maintenance Practices in Pulp and Paper Mill to Improve ProfitabilityVijay Rathi

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Rising raw material and energy costs

Challenging global

economic conditions

Skills shortages

Global industrial

competition

Increasing environmental

and safety requirements

Today’s challenges in Paper Making

© Valmet

Paper mill operational cost distribution Variable costs dominate

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 100.0%

Cost breakdown0.0%0.0%

43.2 %

11.6%

26.0%

9.9%

0.8%4.3% 2.7%

1.4%0.0%

Four steps to Maintenance managementFor lower maintenance costs

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Maintenance effectiveness

Performance management

Downtime &

quality costs

Corrective maintenance

Mai

nten

ance

cos

ts

Preventive maintenance

Predictive maintenance

Unplannedrepair costs

Plannedmaintenance

costs

© Valmet | Author / Title

Maintenance efficiency Performance management compared to traditional concept

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Years

MaintenanceHours / ton

0.1

0.2

0.3

0.4

0.5

0.6

Valmet Mill Service performance management concept

Traditional maintenance concept

• Higher costs• More corrective maintenance• Lower technical availability

• Long-term cost optimization• Fewer failures and repairs• Highest efficiency and quality

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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

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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

Operational excellence through Agreement Management

Energy opportunitiesEnergy 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

All these provide solutions to improve customer profitability

Water opportunitiesWater management solutions for decreased fresh water consumption and increased reuse of process waters with less effluent and lower costs

Working environment opportunities

Solutions for a safe and healthy workplace and improved usability to help increase productivity

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Emissions opportunities

Solutions to help comply with legislation and achieve sustainability targets

Mill Improvements


Mill maintenance outsourcing - Cooperation concept

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Customer

Valmet Mill Service

• 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

Full maintenance responsibility• Preventive maintenance• Daily maintenance and shutdowns• Spare parts management

Valmet• Roll maintenance• Specialist knowledge and services• Process development support

Development focus• Personnel skills and working methods• Preventive maintenance and equipment lifecycle• Effective use of information systems (CMMS)

Other suppliers• Supplier network management• Cost-effective long-term cooperation

One contract Common targets

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Results through a unique combination of know-how

Valmet’s combination of machinery, automation, process and maintenance know-how results in:

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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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© Valmet | Author / Title11

Maintenance and production efficiently integrated

Typical way

Cleaning facilities

Engineering Material mgmnt

PurchasingMaintenance Production

Logistics Purchasing

Valmet way

Cleaning facilities

Engineering Material mgmnt

PurchasingMaintenance Production

Logistics Purchasing

Operate and maintain team

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Full maintenance concept - Clear process creates results

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Maintenance audit

Takeover and Change

program

Target operations

Separate business operations


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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Practical Cases ApproachDeveloping existing maintenance operations

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Define savings & improvement

Potential

Maintenance Audit

Pre study

Audit

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

Agreement

Kick-off

Teams establishment

Project manager

Action plan

Communication to organizations

Change program

New way to operate

ImplementationMaintenance management development

(CMMS)

Competence analyzes

Training

Motivation program

New working methods

Efficiency measurement

RCM based analysis

OEE development program

Stabilizingoperations

Continuous improvementEvaluation of new way of operations

Process development

Quality support

Safety development

Network development

Analysis of results

New annual targets

Partnership

Phase IAudit & analyze

1 m

Phase IITailor made scope and

co-operation model6-12 m

Phase IVDevelopment

Phase IIIImplementation

12 m

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Maintain

Improve

Optimize

Availability Efficiency Performance

• Keep the existing machinery up and running

• Valmet maintenance procedures

• Follow-up and monitoring

• Technology updates for improved efficiency

• Predictable costs

• Best Practices




• Guaranteed results with minimum life cycle cost

• Valmet know how at the mill

• Risk sharing

• Technology updates for improved efficiency

• Predictable costs

• Best Practices




Step by step execution plan

Mill Improvements

Paper machine profitability potentialValues from an implemented project ( EXP.150 KT/Y)

Savings per year EUR 1.2 million

in total

More production byEUR 2.1 million

Fibre- 240 k€ Drying

- 360 k€ MD broke- 340 k€ CD broke

- 95 k€

Maximise the production+ 1,200 k€ Broke => Prima

+ 920 k€

Maintenence costs - 150 k€

Mill Improvements

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On-site analyses and measurements

360°Rolls Agreement How Valmet see the rolls enviorment in a Mill

Spare parts

Showers

LogisticsPress felts

Dryer and forming fabrics

Doctoring

Uhle boxes

Roll environment

Roll maintenance

Roll covers

New rolls

Shoe press belts

Process conditions

Valmet Mill ServiceAmcor 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

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• Liner/Fluting PM 7

• Production capacity 470,000 t/year

• Grammage 75 – 145 g/m²• Design speed 1,800 m/min• Wire width 8,600 mm

Machine data

Performance agreementCase 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

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Results through cooperation

• Coated fine paper, PM 4• Production capacity 210,000 t/year

• Grammage 65 – 90 g/m²• Design speed 1,300 m/min• Wire width 6,300 mm

Machine data

Performance agreement Case Sappi Kangas, Finland

Agreement period: 2002-2010 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

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M-real image bank

Results through cooperation


Focus on Machine Performance and Productivity

“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 PaperGreåker & Säffle Case

Öysten VedahlMill Manager for Nordic Paper Greåker ( 2001 – 2010) Säffle (2005 – 2010)

Key results from co-operation with Valmet Nordic Paper Greåker and Säffle

3 July, 2014


Results and DiscussionUPM, 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 -

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Summary

Skilled personnel Standard

operating procedures

Operator maintenance

Maintenance systemsPreventive

maintenance and shutdowns

Task force programs

Sourcing

Key performance

indicators

Complete maintenance operations

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Benchmarking (Example 150KT/Y WFU)

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Documents

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