Southern Pulp and Paper
The Toccoa Mill in Georgia was purchased by Southern Pulp and Paper in 1984. Toccoa is the only operation in Southern's business that is fully integrated by having a mill with a pulping plant. Twelve years later, management is asking whether or not to invest $15 million in capital into the plant to help productivity. The alternative is to review the scheduling process of production runs to minimize lost productivity.
The mill manager is being asked to review any options and bring his recommendation to management.
In order for these objectives to attained, the mill manager will have to:
o Justify a $15 million investment
o Review scheduling for the #5 & #6 machine
The Toccoa Mill has a long history to it. Opened in 1941, the plant is 55 years old. There has been considerable investment to upgrade machinery and maximize profitability. The #5 and #6 machines are being considered the recipients of the capital investment.
They still function at a tolerable level, but their output is still 200 Tons per Day (TPD) less than other machines in the plant.
If Toccoa does not implement this $15 million upgrade, the plant will still function.
With this computer upgrade, the #5 and #6 machines will be able to handle a more flexible production schedule. The #6 machine will receive the most benefit from investment. It will minimize paper breaks caused from speed variations and moisture changes and therefore increase productivity. The #5 will be able to handle a grade change easier which in turn also helps production.
If flexibility is the key to a successful operation, the $15 million investment should be approved.
Flexibility is needed on the #6 machine more than the #5. The capital should be immediately approved for upgrading the #6...