Universal Pulp And Paper: West Coast Division
TABLE OF CONTENTS
PROCESS FLOW 4
CURRENT PROCESS EVALUATION 4
DECISION BASIS 6
ACTION PLAN ALTERNATIVES 6
APPENDIX 1 9
APPENDIX 2 10
The West Coast Division is a paper and pulp manufacturing plant. It primarily produces newsprint for the daily newspapers which constitutes 95 per cent of the production. Its price conscious end consumers expect reasonable paper quality. Apart from these, they also concern with the arrival of the newspaper on time which means delivery schedule has to be organized effectively by the plant. Specialty paper products are the second type of the production of the plant. According to various customer specifications, plant meets the orders by 5 per cent of its production. Customers order in small quantities but expect high quality. Therefore they do not hesitate to pay premium prices but want their products to have unique sizes, shapes, colors and textures according to their needs.
Two different productions necessitate different process requirements. For the newsprint production, the demand is continuous and the volumes are high, so line-flow process is required. In this process, mass production requires highly automated and specialized equipments for high standardization. Naturally, this leads to low labor requirements. In line-flow process, the goods have no variety, and changing products and volumes are difficult. Operation continues 24 hours a day and 7 days a week. Thus interrupting the process is expensive and not preferred. Additionally, capital investment is very high but in return efficiency is high as well.
Besides, specialty paper products require batch flow type process. This process is disconnected with some dominant flows, in which outputs are processed differently. Unlike line flow process of newsprint paper, in batch flow process variable cost is high. Special products are produced in low volumes, however it is possible to produce multitude of different products. There is high flexibility to respond to individual demands. As it is mentioned before, according to customers’ needs and desires, products might be differentiate in terms of its textures, sizes or shapes. Labors have to be involved more in these processing and skillful labors are necessary.
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The actual setup is capable of producing various paper products. Previous diagram represents the flowchart of the production cycle. The system has three main processes. First process is the “Wood Processing” at which the logs are transformed into wood chips. Second process is the “Pulp Production”. Wood chips are transformed into pulps by mixing in certain amounts according to some predefined recipes and left ready for further chemical process prior to the third process. Third process is “Paper Production”, the final stage, which is fully automated; pulp entered from wet end and left the system as paper from dry end. Next page shows the process flow chart. Process explanations can be found in Appendix 1.
CURRENT PROCESS EVALUATION
Data: Can provide 730 tons of wood chips per hour Converts 8m tons of wood chips into 4m tons of paper per year Converts 4.5m tons of pulp into 4.5m tons of paper(a) Capacity
(tons of paper/year)
Cycle Time (1year/1x106 tons paper)
(a) There are two machines which each of them can convert 2,250,000 tons of pulp into 2,250,000 tons of paper resulting in a total of 4.5 million tons of paper production capacity. (b) Total provided wood chips in tons per year:
Since two tons of wood chips is required to produce one ton of pulp, and to produce 1 ton of paper 1 ton of pulp is required we can translate capacity of 6,394,800 tons of wood chips/year into 3,197,400 tons of paper/year. (c) Since 4,000,000 tons of pulp can be obtained per year...
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