Valmet Mill Maintenance
Outsourcing
– Best Maintenance
Practices in Pulp and
Paper Mill to Improve
Profitability
Vijay Rathi
Today’s challenges in Paper Making
Rising raw
material and
energy costs
2
Global
industrial
competition
Challenging
global
economic
conditions
Increasing
environmental
and safety
requirements
Skills
shortages
Paper mill operational cost distribution
Variable costs dominate
0.0%
1.4%
4.3% 2.7%
0.8%
0.0%
0.0%
Cost breakdown
9.9%
Commission
0.0%
Transportation
0.0%
Variable costs
43.2 %
Pulps
43.2%
Chemicals
11.6%
Energy
26.0%
Water
9.9%
Other variable costs
0.8%
Fixed costs
26.0%
Personnel
4.3%
Maintenance mat.
2.7%
Overhead
1.4%
Other fixed costs
0.0%
Total costs
11.6%
© Valmet
100.0%
4
Four steps to Maintenance management
For lower maintenance costs
Maintenance costs
Corrective
maintenance
Preventive
maintenance
Downtime
&
quality costs
Predictive
maintenance
Unplanned
repair costs
Planned
maintenance
costs
Maintenance effectiveness
Performance
management
Maintenance efficiency
Performance management compared to traditional concept
Maintenance
Hours / ton
0.6
Traditional maintenance
concept
• Higher costs
0.5
• More corrective maintenance
• Lower technical availability
0.4
0.3
0.2
0.1
Valmet Mill Service
performance management
concept
• Long-term cost optimization
• Fewer failures and repairs
• Highest efficiency and quality
Years
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Valmet agreement services that help you to
improve productivity
Availability
Efficiency
Risk control
Maximize availability while
optimizing costs
Optimize operations to
reach set targets
Control risks that would
have an adverse effect on a
plant and/or business
•
•
•
•
•
•
•
•
•
•
•
Intelligent maintenance
Operational excellence
Warehouse inventory
Production
Raw materials
Energy
Resources
Asset value
Safety
Environment
Competence
Maintenance agreement
− A systematic way to improve efficiency
• Agreement is a systematic approach to reach the set
targets
• Cooperation starts with a thorough auditing phase,
during which the development potential is studied and a
development plan is prepared
7
Operational excellence through Agreement
Management
Energy
opportunities
Energy efficiency
solutions to help
minimize energy
consumption
Working
environment
opportunities
Solutions for a safe
and healthy workplace
and improved usability
to help increase
productivity
8
Mill Improvements
Water
opportunities
Water management
solutions for decreased
fresh water consumption
and increased reuse of
process waters with less
effluent and lower costs
Material
opportunities
Emissions
opportunities
Technologies to reduce
the use of fiber and
chemicals, minimize
waste and lengthen the
lifetime of machinery
Solutions to help comply
with legislation and
achieve sustainability
targets
All these
provide
solutions to
improve
customer
profitability
Mill maintenance outsourcing - Cooperation
concept
Customer
• No in-house maintenance personnel
• Production personnel perform contractually
agreed preventive maintenance tasks
• Low and sustainable maintenance cost level
• Focus on process upkeep and efficiency
One contract
Common targets
Valmet Mill Service
9
Full maintenance responsibility
• Preventive maintenance
• Daily maintenance and shutdowns
• Spare parts management
Development focus
• Personnel skills and working methods
• Preventive maintenance and equipment
lifecycle
• Effective use of information systems (CMMS)
Valmet
• Roll maintenance
• Specialist knowledge and services
• Process development support
Other suppliers
• Supplier network management
• Cost-effective long-term cooperation
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Results through a unique combination of knowhow
Valmet’s combination of machinery, automation, process and
maintenance know-how results in:
Flexibility and
experience to
offer customized
service
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The right
maintenance
decisions to
optimize
maintenance
costs
Highest
efficiency of
operations
based on
process knowhow
Maintenance and production efficiently
integrated
Typical way
Engineering
Material mgmnt
Purchasing
Cleaning
facilities
Maintenance
Production
Logistics
Purchasing
Valmet way
Cleaning
facilities
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Engineering
Material mgmnt
Purchasing
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Maintenance
Operate and
maintain team
Production
Logistics
Purchasing
Full maintenance concept - Clear process
creates results
Maintenance
audit
Takeover
and Change
program
Target
operations
Separate business operations
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Professional maintenance audit - Content
supports the future actions
 We need to analyze
– Maintenance practices
– Production efficiency
– Maintenance costs
 We will propose
– Realistic targets
– Action plan
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Practical Cases Approach
Developing existing maintenance operations
Phase II
Tailor made scope and
co-operation model
6-12 m
Phase I
Audit &
analyze
1m
Phase III
Implementation
12 m
Define savings
& improvement
Potential
Scope of
co-operation
Agreement
New way
to operate
Stabilizing
operations
Maintenance
Audit
Proposal
Kick-off
Implementation
Continuous
improvement
Pre study
Content and scope
Audit
Targets
Teams
establishment
Analyses of data
KPI’s
Project manager
Benchmarking
Safety
Action plan
Summary of
conclusions
Maintenance
strategy
Communication to
organizations
Recommendations
Maintenance
resources
Change program
Presentation to mill
management
Trade union issues
Maintenance
management
development
(CMMS)
Competence
analyzes
Training
Motivation program
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Evaluation of new
way of operations
Process
development
Quality support
Safety development
New working
methods
Network
development
Efficiency
measurement
Analysis of results
New annual targets
RCM based analysis
Partnership
OEE development
program
14
Phase IV
Development
Step by step execution plan
Optimize
Improve
Maintain
•
Technology updates for
improved efficiency
•
•
•
Predictable costs
Best Practices
•
Guaranteed results with
minimum life cycle cost
•
Valmet know how at the
mill
•
•
Risk sharing
Technology updates for
improved efficiency
•
•
•
Predictable costs
Best Practices
•
Keep the existing
machinery up and running
•
Valmet maintenance
procedures
•
Valmet maintenance
procedures
•
Valmet maintenance
procedures
•
Follow-up and monitoring
•
Follow-up and monitoring
•
Follow-up and monitoring
Availability
Mill Improvements
Keep the existing
machinery up and running
Efficiency
Keep the existing
machinery up and running
Performance
Paper machine profitability potential
Values from an implemented project ( EXP.150 KT/Y)
More production by
EUR 2.1 million
Savings per year
EUR 1.2 million
in total
Mill Improvements
360°Rolls Agreement
How Valmet see the rolls enviorment in a Mill
Roll environment
Doctoring
Uhle boxes
Shoe press belts
Showers
Press felts
17
On-site analyses
and measurements
Roll maintenance
Spare parts
Roll covers
Dryer and
forming fabrics
New rolls
Process conditions
Logistics
Valmet Mill Service
Amcor Packaging Pty Ltd, Botany, Australia
 Greenfield 345 kton/year
containerboard mill
 Agreement started on July 12, 2011
 Multi-year agreement including
maintenance establishment, mill
maintenance and management of
improvement
18
 Areas of responsibility
– Mechanical, electrical and
automation maintenance
– Roll maintenance
– Management of civil works
– Planning, management and
implementation of improvement
projects
19
Performance agreement
Results through
cooperation
Case Mondi Swiecie PM 7, Poland
 Agreement period started: 2011
 Agreement period: Active
 Targets
– Improve time efficiency
– Reduce specific energy consumption
 Results
– Time effiiciency has improved by about 7.5% since
the agreement started
– Energy consumption has decreased by about 1%
during 2012
Machine data
• Liner/Fluting PM 7
• Production capacity
470,000 t/year
• Grammage 75 – 145
g/m²
• Design speed 1,800
m/min
• Wire width 8,600 mm
20
Performance agreement
Results through
cooperation
Case Sappi Kangas, Finland
 Agreement period: 2002-2010
 Scope
– Project management
– Steering group
– Working groups for focused development areas
M-real image bank
– Common database
– Remote services for specific areas
Machine data
– Special maintenance packages
• Coated fine paper, PM
4
• Production capacity
210,000 t/year
• Grammage 65 – 90
g/m²
• Design speed 1,300
m/min
• Wire width 6,300 mm
– Maintenance development and support
 Results
– Percentage of unplanned shutdowns due to
maintenance reasons dropped continuously from
2.4% to 0.5% in 2004
– The customer reduced the maintenance personnel
by 50% during the agreement period
Focus on Machine Performance and Productivity
Key results from co-operation with Valmet Nordic Paper Greåker and Säffle
 “Maintenance costs lowered in
Greåker 20% and in
Säffle 25%.”
Nordic Paper
Greåker & Säffle
 “The mill’s daily production
increased in Greåker 30% and in
Säffle 25%.”
 “Energy usage lowered with 40%
in Greåker and 20%
in Säffle.”
Öysten Vedahl
Mill Manager for Nordic Paper
Greåker ( 2001 – 2010)
Säffle (2005 – 2010)
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Case
Results and Discussion
UPM, Plattling, Germany
• MMS set up activities on schedule and recruited
a very competent maintenance team.”

- Caius Murtola, General Manager -
• ”We could not have set up the
maintenance better ourselves.”
- Mika Kämpe, Operations Manager -
• “Maintenance is a service function for the first time and not the main
topic in the operations. I can concentrate on paper making.”
- Olli Ylä-Jarkko, Production Manager PM 1 -
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Summary
Key
performance
indicators
Complete
maintenance
operations
Sourcing
Task force
programs
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Skilled
personnel
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Preventive
maintenance
and shutdowns
Standard
operating
procedures
Operator
maintenance
Maintenance
systems
Benchmarking (Example 150KT/Y WFU)
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Benchmarking (Example 150KT/Y WFU)
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Benchmarking (Example 150KT/Y WFU)
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