Plant Services - October 2007 - (Page 41)

ManageMent Personnel The transformation A new management philosophy immediately took root. Johnson has been in the forest products industry since 1973, but this was his first venture in paper mill operations. “From our perspective, Johnson’s inexperience in operating paper mills was a blessing.” Ratzlaff explains. “His outside-in view enabled him to see the mill differently, without predisposed ideas. While previous owners wanted to see a profit before they would make capital investments, Johnson’s team was willing to make the necessary, positive investments. In addition, he valued the employees’ knowledge and brought them in as advisors even before he actually owned the mill.” Achieving long-term viability would require dramatic change. Energy costs were running well more than $1 million per month, and half of that represented natural gas. A primary concern was a drastic reduction in the mill’s reliance on purchased fossil fuels, and the new owners envisioned eventually becoming self-sufficient by using the mill’s own resources to generate energy. However, the goal was complicated by the plant’s condition. “The mill’s infrastructure had deteriorated under Fraser Papers and Smart Papers,” says Detko. “The new management team had to focus on getting structural and machine integrity where it needed to be in order to be competitive. Substantial capital would have to be invested in projects such as a new winder for the #1 machine, steam boxes on the paper machines, new clamp trucks and roof repairs.” To jump-start the business, the new management team established an exclusive distributorship that would support a lean production strategy. “We knew the high cost of selling and maintaining a sales force, and we lacked time to put an experienced sales force together,” explains Bob Byrne, president of Flambeau River Papers. “CellMark was selected to be our exclusive distributor, not only because they have established sales connections, but because of their financing October 2007 Celebrate Wisconsin Gov. Jim Doyle, Congressman Dave Obey, state senators and representatives, and the Park Falls High School band were among the participants at the mill reopening celebration. capabilities, which reduced our need for receivable financing.” The new objective was constant production. The CellMark arrangement reduced the variety of products, which could help streamline operations, maximize machine utilization, and minimize inventory problems. “Cell- GERMAN ENGINEERING DISCOVER W W W.DISCOVERCURTIS.COM ©2007 Curtis-Toledo, Inc. 19282a www.PLANTSERVICES.com CTGNL GENRL German.indd 1 41 9/19/07 7:19:36 http://www.discovercurtis.com http://www.discovercurtis.com http://www.PLANTSERVICES.com

Table of Contents Feed for the Digital Edition of Plant Services - October 2007

Plant Services - October 2007 Contents Monetize It Letters Step into the Blogosphere What it Takes to be a Leader Up and Running Crisis Corner What Works From the Summit Treat Them Right Access Control Out of the Woods Show Me, Don't Guess Condition Assessment Made Easy The Air Above the Floor Power to the Prime Movers In the Trenches Illuminating Maintenance

Plant Services - October 2007

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