By Art Hammer
In January of 2004, Lincoln Paper & Tissue (LP&T) in Lincoln, Maine USA closed its doors leaving 500 workers unemployed and Maine’s Governor, John Baldacci unsettled. Determined to re-employ the citizens of Maine and reopen the business that has become a leading manufacturer of high quality paper and tissue products in the US, Baldacci assigned law officers to guard the empty plant to ensure that it would not “freeze up” over the winter while he searched for potential investors. By the following summer, the plant was back in business and 320 workers were back on the payroll thanks to Keith Van Scotter and John Wissman.
These two businessmen wanted to create a cost-effective and competitive producer of specialty paper and tissue products. A number of initiatives were undertaken, including the installation of the first new paper machine in Maine in nearly 20 years. Additionally, LP&T is installing a new steam turbine generator to become more electrically self sufficient. They also recognized the need to improve paper quality starting with the very important key measure of formation.
It takes more than capital to improve a business. Hence LP&T used a company called QualPro to help identify changes that could be made to improve the company’s operations and maximise its profitability. Through QualPro’s MVT® (multivariable testing) process, LP&T has been able to improve paper quality, cut production costs, and reduce chemical consumption.
25% of the improvement ideas identified by companies actually improve results; 22% have a negative impact. The remaining 53% make no difference and would be a waste of time and money if implemented
MVT® is an improvement process that uses an advanced mathematical method to allow simultaneous testing of up to 30 variables aimed at dramatically improving efficiency and profits. It reveals to managers precisely which factors have a positive impact on any important business objective, which have a negative impact, and which have no impact at all.
Through more than 14,000 MVT tests, QualPro has found that only 25% of the improvement ideas identified by companies actually improve results. Surprisingly, 22% of improvement ideas have a negative impact. The remaining 53% make no difference and would be a waste of time and money if implemented. By testing simple, no-cost ideas suggested by employees throughout the company, MVT is able to create workforce enthusiasm for implementing the winning ideas. Companies that use MVT to focus its efforts only on helpful actions can quickly achieve performance breakthroughs while building morale.
At LP&T, MVT® has identified ways to make major improvements, such as improving quality, reducing waste, and increasing production. LP&T continues to use MVT® to test dozens of solutions and identify exactly which actions can be implemented to improve its business as the company continues along its aggressive growth path.
According to Keith Van Scotter, “Our goal is to improve faster than our competition. MVT is going to be a way of life for us, and it’s going to be one of our key tools to drive improvement and achieve that goal.” Already, Lincoln Paper & Tissue has improved its competitive position as it relates to both paper quality and profitability. TW
Art Hammer is with QualPro Inc in the USA.
