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Shell Global Solutions - Impact Online 2009 Issue 3 - Case Study ...

CASE STUDY

20 impact


Enhancing asset value

Canadian paper mill focuses on improved reliability and reduced maintenance costs

The decline in construction work

caused by the economic downturn

has had serious consequences for the

forestry industry. With reduced demand for

their products, compounded by increasing

raw material costs and operating

expenses, many companies are being

forced to cut production or close plants.

According to Tolko Manitoba Kraft

Papers (TMKP), operational excellence is

the key to surviving in a difficult market.

Located in The Pas, Canada, TMKP

typically manufactures internal layers for

bags for pet food, cement and sand.

In its ongoing efforts to meet customers’

needs for quality products at competitive

prices, the company has implemented

several initiatives. One of these is an

asset-management programme from Shell

Global Solutions. The programme is

designed to help prevent the deterioration

and breakdown of equipment in order

to reduce unplanned and emergency

work, and to help increase production by

reducing downtime.

TMKP began work on the programme

with an assessment to confirm that the

opportunities identified during an earlier

scouting study were still valid. Once

the assessment was completed and the

potential benefits had been validated, a

team of TMKP personnel and consultants

from Shell Global Solutions was put in

place to work towards achieving the

programme’s objectives.

As part of the implementation work,

personnel from Shell Global Solutions

conducted workshops designed to help

introduce and establish new practices.

The workshops incorporated a range of

techniques and technologies developed by

the organisation and widely used within

Shell Group operations. These included

risk-based decision making; operationalreliability

management; defect elimination;

maintenance planning, scheduling

and optimisation; reliability-centred

maintenance; shutdown management; and

business-performance management. Shell

Global Solutions also provided leadership

coaching, change-management support

and an on-site presence, a site co-ordinator.

“We have seen value from both parts of

the programme: from the technical aspects

and from the change-management support,”

says Blair Rydberg, Site Manager, Tolko

Manitoba Kraft Papers. “You can teach

people the techniques, but there are often

cultural aspects that hold them back from

using the tools. Change-management

support from Shell Global Solutions has

been very helpful in this area.”

The programme has given TMKP a

common system for asset management,

especially for maintenance. Instead

of having different processes in the

maintenance and operations departments,

its staff now share the same operating and

maintenance philosophies.

Andre Murphy, Maintenance Manager,

Tolko Manitoba Kraft Papers, agrees:

“We are a lot more team focused and

there is more interaction between the

different groups. One of the benefits of the

increased teamwork is that we can get to

the root cause and resolve problems a lot

faster than before.”

The programme has also helped with

prioritisation at TMKP. The risk-assessment

matrix is helping the company to understand

how to manage risk and to organise the

management of reliability. The shutdown

scope challenge process helps with

shutdowns: work scopes are now defined

and only the work that needs doing is done.

The programme has helped TMKP

to reduce maintenance costs through

the application of asset-management

techniques and support. Two years

after it started, the programme had

delivered a 27% year-on-year reduction

in maintenance costs compared with the

baseline before the programme started,

which is 7% better than the target.

For more information contact:

Richard Montpas

Email: richard.montpas@shell.com

www.shell.com/globalsolutions

impact 21

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