Approaches to cost reduction
By Richard C. Dow

The following is a list of a few techniques and methods to easily and effectively engage both the management organisation and workforce in cost reduction activities in the manufacturing and converting of tissue products.

1. If you were mill manager: Ask all managers and members of the workforce to prepare an unsigned list of the actions they would take to increase efficiency and reduce costs if they were mill manager.
2. Employee cost awareness: Indicate the number of tons of paper the company has to sell to pay for the average annual wages and benefits of just one employee.
3. Product value: Many employees are not fully aware of the significant value of the product on which they are working. Awareness can be enhanced by printing the cost of each roll, based on weight and grade, on each roll ticket.
4. Energy & water discipline: Place tags on selected equipment indicating the hourly operating cost. Emphasis to be placed on those lights, fans, pumps, motors and water hoses used intermittently and that are manually controlled.
5. Job descriptions: Have every manager and workforce member prepare a list of what they view as their job duties. This should be done in monitored groups to preclude their sharing opinions with others. A prime purpose is to determine how many consider waste reduction as a part of their job.
6. Fixing responsibility: Organize discussions to review how best to identify and rectify the causes of waste and defects in those instances where multi-shift crews in several departments are involved.
7. Equipment: Initiate discussions with respect to how much of the waste and broke problem is caused by inadequate and/or improperly maintained equipment.
8. Loyalty, to whom is it owed: Lead discussions about what to do when you as a conscientious employee see others with careless work habits that are wasteful, inhibit production and adversely affect product quality.
9. Malingerers: In the larger mills, maintenance personnel can be the most notorious. On a random basis, a management staff member should approach them and ask, “Where are you going and what are you going to do?” In some cases, accompanying the suspected malingerers to the job site is an effective way to alleviate the problem.
10. What if: Have every employee list six places they'd apply for work if their mill was shut down.
11. Maintenance cost awareness: Affix a tag to the actual equipment indicating the cost of the most recent repairs.
12. Job and work orders: Before non-emergency repair orders are approved for implementation, costs will be estimated by engineering and/or purchasing and returned to the requestor for approval, rejection or a request for a review/explanation of the cost estimate.
13. Employee attitude: Pose such questions as: “If you maintained airplanes on which you had to fly, would you take more care in your job?” Smaller groups are best when discussing these issues. Discuss faulty products they have purchased and shoddy workmanship they have personally experienced.
14. Mill closures: Compile a list of similar tissue mills that have closed during the past 10 years. Cite and discuss the reasons for their closing.
15. Waste & broke questionnaire: Prepare a sheet listing over 50 causes of waste and broke and have the managers and the workforce indicate those they feel are the most prevalent causes. Sample listing follows:

Richard C Dow, Cape Elizabeth, Maine, USA, is a consultant specializing in process efficiency and/or sales mix. E-mail: rcdow@maine.rr.com