Internal Memorandum
Date:
June 3, 2008
To:
Area Operations Managers
Location:
Various
From:
Paul Bishop
Director Operational Excellence
Location:
Creve Coeur
Subject:
Area Level OPX Implementation
Expectations
cc:
John Knudsen
Fred Rossi
Manufacturing RVPs
Regional Manufacturing Managers
Implementing “Era 1” OPX elements by the end of 2008 is critical to the success of
Smurfit-Stone’s overall transformation efforts. As such, it is a requirement that
Era 1 implementation be completed in all plants by year-end 2008. Area
Operations Managers have the primary responsibility for ensuring this requirement
is met.
Implementation Expectations
At a minimum, the key elements of each OPX work stream should be in place and
functioning with particular emphasis on performance at the plant’s primary
bottleneck. Following is a brief description of the key OPX work streams and the
expected level of implementation. An overview of these expectations is also
provided in the most recent OPX portal update: File://P:/Training/Videos/MayOPXupdate4.wmv
Performance Management
 Machine performance logs facilitating effective performance dialogues between
supervisors and crews
 Shift Handover Meetings identifying actions to close performance gaps
 Effective System Performance Meetings representing all functional areas
Corrugator
 Process controls in place per OPX and the “corrugator initiative”
 Speed boards with center-lined setting in place and actively utilized.
Converting
 Standardized setup procedures being utilized, monitored and demonstrated
 Order readiness processes intact and effectively functioning
Scheduling
 Weekly scheduling effectiveness scorecard with “A” level results (in the absence
of CASE, order-based scheduling practices being utilized)
 Limited stockouts due to corrugator scheduling practices
Maintenance
 Maintenance shops and storerooms secure, clean and organized with no
obsolete or excess parts present
 PMs executed as scheduled with specific measured tasks
 Work order process in place and functioning effectively
 Weekly prioritization meeting occurring between Maintenance Supervisor,
Production Manager and Superintendent
Workplace Organization
 Clean, well-organized machine centers, tooling and supply storage areas
 Demonstrated culture of cleanliness and upkeep of common areas
Keys to Success
As presented at this year’s leadership meeting, the key elements to a successful
area level implementation include:
 Leadership clearly communicating the expectation and driving the
implementation
 A strong, dedicated Area OPX Champion and Team
 Era 0 OPX elements (safety, quality, waste and environmental) locked in and
part of the culture
 A willingness to aggressively work existing talent management issues
 Aggressively attacking machine readiness and reliability issues
The Organization is Well-Equipped to Complete the Implementation
The OPX team has worked hard over the past 18 months to train and equip the
organization with the tools and processes necessary to implement and drive results.
As evidenced below, the organization is fully equipped to complete the Era 1
implementation and take OPX to the next level:
 More than 284 employees have attended 11 Boot Camps, including all RVPs of
Manufacturing, all AOMs, RMMs, most of our PMs and numerous
Superintendents and Area OPX Champions – Next Boot Camp: August in Santa
Fe Springs
 OPX tools, transformation guide and playbook are in use and have been
distributed throughout the division and are available for reference on the portal
 Wave 5 began in six plants on 4/21, with additional support in Cerritos and New
Lenox startups
 35 plants have completed implementation with dedicated OPX teams as of
March 2008
 750 to 850 employees have participated directly in an OPX transformation
 Comprehensive training and communications plans in effect