Tissue360 - Fall/Winter 2016 - 35


Reducing MRO Inventory
Using RCM Principles
Tissue mills can benefit as well as paper mills producing all grades

Tissue mills, like many other capital intensive industries, know that cost cutting from the maintenance budget can be
a difficult task when done in an environment of fixing broken equipment. With no
understanding of when and why equipment
is failing, there are too many unknowns
to deal with. We tend to find that cutting
maintenance budgets and repair and operating (MRO) inventories beyond a certain
level becomes more and more difficult. As
tissue mills age, there is a tendency toward
growth in MRO inventory.
A mill manger once told me that MRO
inventory levels were a good indicator of
the maintenance culture within a mill. High
levels of inventories along with decent run
ability indicated to him a reactive firefighting culture; relatively low MRO levels
and good runnability indicated a culture
that pointed more toward proactive maintenance. Whatever a mill's maintenance
culture is, that culture is less of a reflection
of the maintenance department than it is of
the overarching beliefs of the mill's leadership. Maintenance culture is mill culture,
not departmental.
Today's tissue mills face a competitive
manufacturing market that is tied directly
(or almost) to their consumer base. In the
pulp/paper/tissue industry, tissue, more so
than any other product, is directly tied to
the point of sale consumer. In fine paper,
while many individuals buy some paper for
individual use, the bulk of sales are to customers who do not directly use the product.
Here is an example of what I mean. A
health care insurance company may buy
tons of paper, which makes them a customer, but the actual consumers of the
paper are that companies employees. So
the consumers are at least one step removed
from the manufacturers. The same holds
true with linerboard, where typically a
consumer is driven to make a purchase

based on the product contained within
the packaging.
I know there are always exceptions, but
for the most part people buy a brand of
cereal because they like the cereal, not
because they like the box it comes in (fancy
graphics and marketing aside). In tissue,
more so than not, the customer is the consumer. I know the big box store makes the
first purchase, but they in turn sell to the
consumer. So for the big box store to make
the first purchase, the consumer must be
satisfied with the product.
A pulp and paper mill I worked with had
a significant investment in MRO inventories. So for them, inventory management
and reduction was an important strategy.
Looking for new ways to improve decision
making, business process effectiveness,
as well as reducing working capital, they
turned to a new approach in managing
storeroom inventory levels. The need for
inventory management is no less important,
and may be more so in the tissue market.
This mill undertook a new chapter in its
quest for operating at world-class asset reliability levels. The mill embarked on its first
use of Reliability Centered Maintenance
(RCM) methodologies. The original project
objective was to reduce the reactive maintenance costs associated with repairing
equipment after it had already reached a
failed state.
To do so, the creation of new asset
reliability programs founded upon a formal understanding of how an asset fails
(referred to in RCM terms as failure modes)
was undertaken. An RCM-based methodology was selected for the project. With
asset failure modes formally documented,
it then became possible to apply one of two
major categories of maintenance strategies
to the asset:

1. A Condition-Based Maintenance (CBM)
strategy for assets such as bearings that
fail randomly, but are eligible for a proactive task for the detection of the given
failure mode (via the mill's choice of
proactive options such as inspections,
PdM technologies, PM, etc.). The chosen
proactive task results in an understanding
of the state of the given failure mode at
the point in time of the inspection.
2. A No-Scheduled Maintenance (NSM)
strategy for assets such as electronic
devices that fail randomly with little or
no notice.
Both of these maintenance strategies
require a different approach for making
storeroom spares stock versus non-stock
As mentioned, understanding the correct
point in time of the inspection (the inspection frequency) becomes critical within the
new proactive maintenance program to
ensure the identification of:
1. The failing state prior to the asset reaching actual functional failure
2. The failing state with adequate lead time
for the maintenance planner to plan and
schedule the corrective task prior to the
asset reaching functional failure.
It was the planning function within 1. that
gave rise to the opportunity to revisit the
approach to determining an assets spares
stocking policy for assets being maintained
with a CBM strategy.
To ensure the inspection frequency is
correct, RCM uses a time horizon at the
individual failure mode level called the P to
F Curve, with P being the point the potential
failure is identified (an inspection point)
and F being the point of functional failure.
If the state of P is such that a corrective task
is required, then the remaining time to F
Tissue360ยบ FALL/ WINTER 2016



Table of Contents for the Digital Edition of Tissue360 - Fall/Winter 2016

Tissue Industry News
PrimeService for Modern Tissue Machines
Making the Most of Opportunity in Tissue?
Reducing MRO Inventory Using RCM Principles
Vacuum Blower Saves 40-50 Percent Tissue Dewatering Costs
Tissue360 - Fall/Winter 2016 - cover1
Tissue360 - Fall/Winter 2016 - cover2
Tissue360 - Fall/Winter 2016 - 3
Tissue360 - Fall/Winter 2016 - 4
Tissue360 - Fall/Winter 2016 - 5
Tissue360 - Fall/Winter 2016 - Setpoint
Tissue360 - Fall/Winter 2016 - 7
Tissue360 - Fall/Winter 2016 - 8
Tissue360 - Fall/Winter 2016 - Tissue Industry News
Tissue360 - Fall/Winter 2016 - 10
Tissue360 - Fall/Winter 2016 - 11
Tissue360 - Fall/Winter 2016 - 12
Tissue360 - Fall/Winter 2016 - 13
Tissue360 - Fall/Winter 2016 - 14
Tissue360 - Fall/Winter 2016 - 15
Tissue360 - Fall/Winter 2016 - 16
Tissue360 - Fall/Winter 2016 - 17
Tissue360 - Fall/Winter 2016 - 18
Tissue360 - Fall/Winter 2016 - 19
Tissue360 - Fall/Winter 2016 - 20
Tissue360 - Fall/Winter 2016 - 21
Tissue360 - Fall/Winter 2016 - 22
Tissue360 - Fall/Winter 2016 - 23
Tissue360 - Fall/Winter 2016 - PrimeService for Modern Tissue Machines
Tissue360 - Fall/Winter 2016 - 25
Tissue360 - Fall/Winter 2016 - 26
Tissue360 - Fall/Winter 2016 - 27
Tissue360 - Fall/Winter 2016 - 28
Tissue360 - Fall/Winter 2016 - Making the Most of Opportunity in Tissue?
Tissue360 - Fall/Winter 2016 - 30
Tissue360 - Fall/Winter 2016 - 31
Tissue360 - Fall/Winter 2016 - 32
Tissue360 - Fall/Winter 2016 - 33
Tissue360 - Fall/Winter 2016 - 34
Tissue360 - Fall/Winter 2016 - Reducing MRO Inventory Using RCM Principles
Tissue360 - Fall/Winter 2016 - 36
Tissue360 - Fall/Winter 2016 - 37
Tissue360 - Fall/Winter 2016 - 38
Tissue360 - Fall/Winter 2016 - 39
Tissue360 - Fall/Winter 2016 - 40
Tissue360 - Fall/Winter 2016 - Vacuum Blower Saves 40-50 Percent Tissue Dewatering Costs
Tissue360 - Fall/Winter 2016 - 42
Tissue360 - Fall/Winter 2016 - cover3
Tissue360 - Fall/Winter 2016 - cover4