Welcome To Whitby: Production Manager: Wayne Flowers

WELCOME TO WHITBY
Production Manager:
Wayne Flowers
Smurfit-Stone Container * Operational Excellence Boot Camp 1

Introduction and agenda review

Page
Start Duration Topic Facilitator Reference
DAY ONE – Monday, January 7th, 2008

8:00 am 15 min Welcome (safety review) Wayne Flowers
8:15 am 15 min Introductions and agenda review John Thatcher
8:30 am 30 min Ice Breaker & quiz John Thatcher
9:00 am 30 min Era 0 – What it is and what it is not Lyle Angus 6
9:30 am 30 min Floor walk Norm Shearer 11
10:00 am 15 min Floor walk observations recap Norm Shearer 13
10:15 am 15 min BREAK
OPX Canada – context, overview, expectations of area John Thatcher
10:30 am 30 min 14
teams Sandor Wolkensperg
John Thatcher
11:00 am 30 min Transformation Overview 50
Sandor Wolkensperg
11:30 am 30 min Participants share learning objectives Sandor Wolkensperg
12:00 pm 45 min LUNCH
12:45 pm 30 min Introduction to diagnostic tools Mark McTaggart
1:15 pm 30 min Operating system overview & M.I.F.A. Shaun McQueen 71
1:45 pm 30 min Overall Equipment Effectiveness Shaun McQueen 80
2:15 pm 60 min O.E.E. Breakout exercise Shaun McQueen 87
3:15 pm 15 min BREAK
Day 3
3:30 pm 90 min Target review & target setting Shaun McQueen
pg 2
5:00 pm ADJOURN
6:00 pm Group Dinner @ Kelsey’s
Page
DAY TWO – Tuesday, January 8th, 2008
8:00 am 15 min Day One Recap Sandor Wolkensperg
8:15 am 30 min O.E.E. Revisited Sandor Wolkensperg Handout
8:45 am 45 min Converting Set-up exercise Mark McTaggart 3
Mark McTaggart
9:45 am 30 min Order Readiness 9
Santino Rematore
Mark McTaggart
10:15 am 45 min Set-up Procedures 21
Santino Rematore
11:00 am 30 min Machine Readiness Mark McTaggart 35
11:30 am 30 min Converting Set-up floor walk GROUPS? 40
12:45 pm 15 min Workplace Organization Introduction Norm Shearer 42-45
Norm Shearer
1:00 pm 15 min Workplace Organization – Machine Cleaning 46-50
Shayne Byrne
Norm Shearer
1:15 pm 15 min Workplace Organization – Work Centers 51-53
Shayne Byrne
Norm Shearer
1:30 pm 15 min Workplace Organization – W.I.P. 54-57
Shayne Byrne
Norm Shearer
1:45 pm 15 min Workplace Organization – Other 58-61
Shayne Byrne
Converting Minor Stops and Speed Loss
2:00 pm 75 min GROUPS? 77
Floor Exercise
Converting Minor Stops and Speed Loss Mark McTaggart
3:30 pm 15 min 79
Floor Exercise - Report Outs Santino Rematore
Mark McTaggart
3:45 pm 45 min Converting Minor Stops and Speed Loss 68
Santino Rematore
Day 3
4:30 pm 30 min Scheduling John Thatcher
Pg 50
5:00 pm ADJOURN
6:00 pm Group Dinner @ Baton Rouge
Page
DAY THREE – Wednesday, January 9th, 2008
8:00 am 15 min Day Two Recap Sandor Wolkensperg
Sandor Wolkensperg Day 4
8:15 am 30 min Mindsets and Capabilities
Norm Shearer Pg 2
Sandor Wolkensperg
8:45 am 30 min Performance Management Introduction 13
Norm Shearer
Sandor Wolkensperg
9:15 am 30 min Shift Handover Board Exercise 29
Norm Shearer
9:45 am 30 min Supervisor Coaching
Norm Shearer Pg 14
John Thatcher Day 4
10:30 am 60 min Maintenance Introduction
Norm Shearer Pg 45
John Thatcher Day 4
11:30 am 60 min Equipment Strategy Workshop
Norm Shearer Pg 53
Sandor Wolkensperg
1:15 pm 45 min Corrugator Diagnostic Walkthrough
Glen Brydges
2:00 pm 30 min Corrugator Process Controls
Glen Brydges Pg 61
2:30 pm 30 min Corrugator Operations
Glen Brydges Pg 69
3:00 pm 30 min Corrugator Quality Exercise
Glen Brydges Pg 78
Mark McTaggart Day 4
3:45 pm 30 min Rapid Diagnostic Introduction
Santino Rematore Pg 65
Day 4
4:15 pm 45 min Diagnostic Team Breakouts GROUPS?
Pg 75
5:00 pm ADJOURN
6:00 pm Group Dinner @ Milestone’s
Page
DAY FOUR – Thursday, January 10th, 2008
8:00 am 240 min Rapid Diagnostic
12:45 pm 255 min Rapid Diagnostic
5:00 pm ADJOURN
6:00 pm V.I.P. DINNER @ Krebs Restaurant
Page
DAY FIVE – Friday, January 11th, 2008
8:00 am 15 min Rapid Diagnostic Recap Mark McTaggart
8:15 am 90 min Rapid Diagnostic Report Out Participants
John Thatcher
10:00 am 60 min Review Participant Learning Objectives
Sandor Wolkensperg
John Thatcher
11:00 am 60 min Review and wrap-up
Sandor Wolkensperg

ICEBREAKER

OPX Playbook Quiz

Era 0 – What it is and what it is not

ERA 0 ELEMENTS
• To demonstrate how Safety, Quality, and Waste Reduction,

although already priorities of Smurfit-Stone, are still central in
Purpose an OPX environment.
• Team discussions on how to OPX can reinforce Safety,

Quality, and Waste Reduction while placing an emphasis on
Process increased throughput and productivity.
• Understanding of how SSCC’s Safety, Quality, and Waste

efforts fit into Operational Excellence
End products

ERA 0: SAFETY
Manufacturing, by definition, is dangerous work. And by running the machines faster in

the “performance-based” culture of OPX, Safety will be more important than it ever has.
As plant leaders, we are responsible for reinforcing a safe working environment, and ensuring
safe behaviors are being exhibited by our coworkers.
Why might people mistakenly think that safety is incompatible with a performance-based
culture? How can we as leaders change their minds?
What evidence could we look for to see if safety is a priority in the plant?

ERA 0: QUALITY
The purpose of the QualityONE system in the OPX environment is to ensure the
prevention and correction of processes or behaviors that contribute to inefficiencies,
waste, and customer rejects. But under OPX, when we are helping operators produce more
throughput than ever before, quality could slip and OPX will fail if we don’t do our jobs to ensure
That QualityONE does not get ignored at the expense of making more boxes. Remember: it
doesn’t matter how many boxes you make if they are of such poor quality that nobody wants to
buy them.
Why might people mistakenly think that OPX is incompatible with QualityONE? How can we
ensure improvements in both quality and throughput?
What programs/tools does Smurfit-Stone have in place to help with Quality, and how can we
ensure they are being utilized during our time in the plants?

ERA 0: WASTE
There is a common belief that if we turn up our machines to achieve higher throughput,
our Total Waste percentage will go up as well. This could be true in instances where there
isn’t an active waste management system in place. But under OPX this scenario is
unacceptable.
List a few instances of how stressing increased throughput could lead to higher total plant
waste:
–
–
–
How can we as leaders help plants both increase throughput AND improve their overall Total
Waste percentage?
What programs/tools does Smurfit-Stone have in place to help with the elimination of waste?
–
–
–

Free floor walk exercise

During your walk, observe and note:
Evidence that safety is a priority in the plant?
1. _____________________________________________________________________
2. _____________________________________________________________________
3. _____________________________________________________________________
Evidence that quality is a priority in the plant?
1. _____________________________________________________________________
2. _____________________________________________________________________
3. _____________________________________________________________________
Evidence that waste is a priority in the plant?
1. _____________________________________________________________________
2. _____________________________________________________________________
3. _____________________________________________________________________
Free floor walk recap – What did you see?

OPX Context and Overview

OPERATIONAL EXCELLENCE IS THE WAY WE WILL OPERATE OUR
MANUFACTURING FACILITIES
Established • Baseline performance in safety, quality, waste and

operational environmental elements
fundamentals • Targets established and communicated
Throughput • Operate machines at a higher level of performance

focused • Schedule the machines to minimize cost per unit
• Utilize assets of an area in an optimal way
Leverages • Clearly define the standardized “Smurfit-way”

standardized • Leverage expertise of Smurfit-Stone experts and
practices demonstrated best practices from across the
organization
• Operating targets for regions, areas, and plants

Expectations and • Key metrics for individuals
accountability • Accountability for performance

OPERATIONAL EXCELLENCE PRIORITIZES THE EFFORTS TO
ACHIEVE A BEST-IN-CLASS OPERATING SYSTEM
OPX horizons OPX focus
Era 2
Era 1
“Enhanced Manufacturing
Excellence”
Era 0
“Core Manufacturing
Excellence”
OPX themes “Basic Manufacturing”
Core technical • Safety • Performance • Supply chain/trailer

elements • Waste management utilization
• Quality • Performance • Maintenance (v 2.0)
• Environmental • Set-up process • Scheduling (v 2.0)
• Maintenance (v 1.0) • Enhance printing
• Scheduling (v 1.0) • Lean
• Roles and
responsibilities
OPERATIONAL EXCELLENCE IS AN END-TO-END TRANSFORMATION
Operational Excellence (OPX) focuses on creating and managing a

best practice manufacturing system through its customer-centric,
performance-based culture
Tools
OPX • Visual management boards
Management • Machine operating logs
System • Standard metrics and
Tools targets
• OPX Playbook OPX Operating
• SSCC SOPs System
• Local SOPs
Smurfit-Stone Tools
Performance • Roles descriptions
Culture • Talent review process
• Leadership
development/training

WITHIN EACH AREA, OPX IMPLEMENTATION WILL FOLLOW A
5-STEP TRANSFORMATION APPROACH AT THE PRIMARY PLANT
OPX approach Partial OPX team involvement
1 2 3 4 5
Prepare Diagnose Design Implement Sustain
Timing (weeks) Prior to start 2 0-1* 10 Ongoing
Description • Establish prerequisites • Create baseline • Design endstate • Execute through • Check-in and follow-
• Fill data requests • Prioritize efforts • Create workplan plant team on coaching
• Introductory training • Establish unit • Define report out • Plan for area • Upward feedback on
specific targets requirements implementation OPX
Key activities 1.1• Collect data 2.1• Develop overall 3.1• Develop master 4.1• Rollout and re- 5.1• Follow-up
plant baseline implementation fine the phased performance
1.2• Plan out important (MIFA & OEE) plan OPX elements dialogues (area
meetings and and plant)
reviews 2.2• Plant opportunity 3.2• Tailor OPX ele- 4.2• Rollout the
assessment of ments to suit performance 5.2• OPX team circle
1.3• Prepare local man- OPX elements local plant con- management back for audit
agement for OPX ditions system and potential
2.3• Prioritization of Kaizen events
1.4• Establish the team, OPX element 3.3• Develop detailed 4.3• Coach plant
organise logistics implementation workstreams management 5.3• Update OPX
and provide OPX action plans transformation
team training 2.4• Set plant perfor- 4.4• Steering approach and
mance targets 3.4• Define steering Committee playbook based
Committee report out on lessons learnt
review
Key individuals • RVP and AOMs • OPX team • OPX team • Plant team • Plant management
• Plant management • Plant team • OPX team • RMMs
• OPX leads • OPX PMO
Smurfit-Stone
*Design requirements dependent on complexity Container * Operational Excellence Boot Camp
of plant implementation 22
The Canadian Perspective

MILTON
2007 Plant Performance (%comparison to Baseline)
Plant: Nov
50%
45% OPX
40%
35%
30% AOPX
25%
20%
15%
10%
5%
0%
M ay
M ar
O ct
Nov
Dec
Aug
Sep
Apr
Feb
Jul
Jan
Jun
Y T D W e ig h tin g % Y T D
Y T D P e r fo r m a n c e
B a s e lin e P e r io d
Baseline: 4th Quarter 2006
M a c h in e /P la n t
Plant Average - - - - - 100%

BURLINGTON
2007 Plant Performance (%comparison to Baseline)
Plant: Nov
35%
30%
25%
20% OPX
15%
10%
5%
Y T D W e ig h tin g %P e r fo r m a n c e
0%
M ay
M ar
O ct
Nov
Dec
Aug
Sep
Apr
Feb
Jul
Jan
Jun
YTD
Y T D P e r fo r m a n c e
B a s e lin e P e r io d
Baseline: 4th Quarter 2006
M a c h in e /P la n t
Plant Average - - - - - 100%

THREE MONTH PLAN
DEC JAN FEB
03 10 17 24 31 7 14 21 28 04 11 18 25
Québec
TMR – verification of diagnostic and

review of implementation plan
TMR – Implementation
Western Canada
OPX Introductions (Road Show)
 Winnipeg – Dec. 3 & 4
 Regina – Dec. 5 & 6
 New West - Dec. 10 & 11
 Edmonton - Dec. 17 & 18
 Calgary – Dec. 19 & 20
DIAGNOSTICS:
 New West - Jan. 14 -18

 Calgary – Jan. 21 - 25
 Edmonton – Jan. 28 – Feb. 1
 Regina – Feb. 4 - 8
 Winnipeg – Feb. 11 - 15
DESIGN: Prioritize and develop targeted

work plan for each plant.
Ontario
OPX Training prep.
OPX Training - Whitby
Whitby Diagnostic
Whitby Implementation

Expectations of OPX Area Team

THERE ARE PERFORMANCE EXPECTATIONS AT EACH LEVEL OF
THE ORGANIZATION
Deliver ~200m of
operational cost
Deliver throughput savings in 2 years
Act as OPX change uplift at each plan
agents
Support and SSCC
collaborate with OPX 1
OPX team
2
OPX individuals
3 • Full Time Members
Plant • Area Champions
• Plant Champions

A DESIRED PROFILE EXISTS FOR SUCCESSFUL CHANGE AGENTS
Change agent example 1
Key Descriptio
criteria n
• Energetic and enthusiastic

Right attitude • Very high personal aspirations
• Extreme determination
• Willingness and ability to take initiative
• Eagerness for change and new experiences Observing Supplying
• Inclination to take personal risks internal and knowledge,
• “Do it, try it, fix it” mentality external analyzing,
• Willingness to set & accept stretch targets developments and testing
recommen-
• Subject matter expert in respective dations
Appropriate areas/(s) of responsibility
knowledge • Potential process owner
Rolling
• Good communication skills up the
• Good analytical and problem-solving skills sleeves
Skill • Able to operate under instability and Communicating
uncertainty team and Being a
• Highly effective under pressure organization sensor
• Well organized for
• Clear ability to disaggregate higher goals into feedback
focused programs and actions from
• Unusual ability to coach, motivate, and organi-
mobilize others zation
• Respected by shop-floor employees
• Strong reputation and credibility in
making things happen
• Role model, attracting new change leaders

AS AN OPX TEAM YOU ARE EXPECTED TO DELIVER SIGNIFICANT
AND SUSTAINABLE THROUGHPUT IMPROVEMENT
Take the plant through a Ensure the transformation is

step change in throughput sustainable using holistic
improvement that gets approach:
them a significant way • Operating system
towards their new OPX • Management systems
New OPX targets
target • Mindsets and capabilities
Plant
Throughput
Time
Beginnings of the Step-change Sustained change
change process improvement during in performance
OPX team post OPX
involvement involvement
Expectations of the OPX and Area OPX team
Key Personnel Expectations
• Use the OPX Playbook, tools and other resources to help transform the plant.
OPX Team • Train key personnel in the use of OPX tools
• Communicate findings and progress with local plant management on progression
of the work plan.
• Improve Plant through put.
• Learn the OPX Playbook, Tools and determine other resources that are
Area Champion available and how to access them.
• Work with Site Leaders to learn Preparation, Diagnostic, Design and
Implementation strategies.
• Work with Area Operations Manager to determine an implementation
schedule for Beta plants and the resources that will be required.
• Lead the Area OPX Team in the Beta Plant implementations.
• Learn the OPX Playbook, Tools and determine other resources that are available
Plant Champion and how to access them.
• Work with respect to the Work plan and give feed back as to the successes and
failures.
• Apply the tools to determine the greatest opportunity in the plant and drive through
put.
• Deliver a consistent message to all management and shop floor employees.

Transformation overview

TRANSFORMING OPERATIONS REQUIRES A 3 DIMENSIONAL APPROACH
“The way physical

assets and resources
“The formal structures,
are configured and
processes, and
optimized to create value
Management systems through which
and minimize losses”
systems the operating systems
are managed to deliver
the business objectives”
Operating systems
Mindsets and
capabilities
“The way people think, feel,

and conduct themselves in
the workplace, both
individually and collectively”

Success
DETAILS requires an integrated
OF OPERATIONAL EXCELLENCEsystem of technical,
managerial, and cultural excellence
Attribute World-class manufacturers have . . .
1 • Clear links between the technical operating system to manufacturing

Operating
strategy
system
• Material and information flows that minimize movement, tie production
rates to true customer demand, and build only what is consumed or
ordered
• Fully defined work standards, maintenance and quality systems
• Full understanding of the operating system by all employees, down to
front line
2 Management • Rigorous performance and health management systems

infrastructure • Organization structure (re)design to best match operating system
needs
• Capability building structure and processes, with continuous
improvement infrastructure to drive sustained change
3 • Explicit shifts in mindsets and behaviors down to the front line

Mindsets, • Full buy-in and understanding of roles for each individual
capabilities, • Fully and continuously aligned leadership, which can resolve issues
behaviors quickly
• Appropriate skills at appropriate levels within the organization
~75% OF TIME IS DEDICATED TO IMPLEMENTATION CONCEPTUAL
OF CHANGE
Think 25% Act/implement 75%
Diagnose Create flow
Design Build capability Create visual

management
Plan Build in quality Coach managers

TRANSFORMING MINDSETS AND CULTURE IS PARAMOUNT
1 The goal of mindset and capability change is to instill a

performance culture, led by people that are capable and
desire to achieve dramatically improved performance
2 “Hard” changes to the operating system and management

system, installed during the mini-transformation, drive a large
portion of the desired mindsets and capability change simply Large scale change
because they create a “new way of life” programs must
3 In addition, the mini-transformation must bring changes in • Install the systems that
experiences, expectations, role modeling, and skills to create this “new way of
drive real ability and desire to run the line better life” in operations
4 Each organizational position has a specific role to play once • Train change agents to
the production system is installed, and a desired mindset kick-start the change
and capability level to target during the mini-transformation
• Prepare line leaders and
5 Change agents bring “bursts” of change through redesign operators to sustain the
of the operating and management systems, and creating change
experiences and skills to create the performance culture
6 Sustainable performance improvement requires the line

owning and sustaining this “new way of life” long after the
initial 16-week “burst” of change (the mini-transformation)
Introduction To Diagnostic and
Diagnostic Tools

Diagnostic Overview
• Identify and eliminate machine performance limiting issues
• Categorize issues into 4 buckets and apply proven tools or methodologies to
reduce or eliminate issues :
– Speed Loss (actual speed vs. 80% OEM speed – converting or 90% OEM
Purpose speed for corrugator)
– Minor Stop (jam up, paper break, wash print plates, etc.)
– Major Stop (mechanical Failure)
– Setup time ( time from last box out to 100 consecutive good boxes produced in
next order)
A. Perform a line study involving collection of data to determine total throughput

vs. total capable in a given time frame capturing all instances of downtime and
run speeds
Process B. Perform a machine or department diagnostic assessment (interviews and
observations) to identify weaknesses in all the workstreams:
- Corrugator - Converting - Workplace Organization
- Order Readiness - Machine Readiness - Maintenance
- Performance Management
• Eliminate or reduce throughput limiting factors and increase Overall Equipment

Effectiveness
End State
• Establish standardized operating procedures or methodologies in all workstreams
• Audit each workstream to ensure all tools being used effectively
• Develop scorecard to evaluate and hold people accountable
Diagnostic Tools For Each Bucket Of Opportunity
Speed Loss
• Typically the largest opportunity for improvement in converting.
• Speed Log Identifies the top 20 repeatable orders for each machine center – Dirk Rooker MIS
• With the use of a Speed Trial work with crew to determine maximum run speed for the order. Inform
Operator and packer of your intention and verify after each speed adjustment that quality has not been
affected as a result of increase in speed. If so make necessary adjustments to overcome defect. Monitor
increase in speed for 3-5 minutes and ask operator to turn machine up again in intervals of 10 -15 pieces
per minute. Repeat the process until no further speed gains can be attained. Document maximum
attained run speeds and identify speed limiting factor on Speed Trial and Speed Log.
Minor Stops
• A minor stop is defined as any incident that causes downtime during a production run in which
maintenance is not required.
• Minor stops can be the result of improper set up causing jam ups or negative quality i.e. print slipping.
• NCPC (No Crap Past Corrugator) is also a key tool in preventing defective stock from reaching the
converting department and or the customer – effective use of all Process Controls at the corrugator is the
only way to ensure quality Product. Starch viscosity and Gel Point checks, Heat checks, Soak Tests,
Caliper checks, Dimensional checks, rip or bond checks must all be completed and documented
throughout each shift.
• Performance Logs MUST be used in Converting and Corrugator to document each hours performance
as well as each hours constraints or reasons for not hitting machine targets and actions taken (5 why).
• Recipe cards are another tool that can assist in eliminating both set up time and minor stops due to
improper set up. A recipe card is used to document all key settings for each order and is also an
invaluable tool in set up reduction.
Diagnostic Tools For Each Bucket Of Opportunity – Cont’d
Major Stop
• Defined as any loss in production resulting from downtime caused by a mechanical failure in that
Maintenance must be called to repair.
• An effective Preventative Maintenance program is the best way to reduce unforeseen breakdowns.
It is important to separate Preventive maintenance which is inspection from doing regular repairs
from work orders. For every one hour of effective PM inspection you will gain 7-10 hours (over the
course of a year) of production otherwise lost by a unplanned breakdown
• ESW’s (Equipment Strategy Workshop) are annual (at a minimum) deep cleaning and PM of each
major piece of production equipment. Properly done these must be well planned and involves all
crews, planning, and maintenance and should take approximately 48 hours to complete. Pre
meetings and follow up meetings must be done to ensure effective follow up on any identified areas
of concern.
Set up
• A set up is defined as starting as soon as the last box of current order enters the delivery end and
finishes after 100 consecutive good boxes are running on new order.
• A set up can also be broken down into three separate areas
1. Order Readiness – ensures all tooling is press ready and within 10 seconds of crew member.
Tooling includes all documentation, unit Id’s, ink, print plates, S.R.D. and required tools.
Proper manning allows for 1 man for 2 machines to provide relief (breaks and lunches) and full
order readiness. Workplace Organization and 5’s must be implemented to allow the 10
second rule to work effectively
2. Machine Readiness – ensuring machine registers and dials are operational and accurate i.e
Circles and Rainbows
3. Set up Adjustment – How many boxes until machine is running salable product and how
many minutes adjusting from Container
Smurfit-Stone time machine closed
* Operational Excellence Boot Camp 41
Top 20 Repeatable Orders for 061 - Speed Log
ESTIMATE# CUSTOMER BOX I.D. MAX. SPEED DATE OPER. INITIALS
B0159601 Westbrook floral BOX 18 XS
50256501 Andrew J. Hendricks Box 16L
50269701 Andrew J. Hendricks Box 16S
B0158801 Westbrook Floral BOX 16 XS
50269801 Andrew J. Hendricks Box 16 DL
B4139501 Bayview Greeenhouses 14" XS - (red)
B2620701 Sunrise Greenhouses 14" XS - (black)
B4649801 Georgia Pacific CBSM-6C (Rev. 2)
B3232701 Schenk Farms 12" (XS-red) Liv 352
B2429801 Pinty's Delicious Foods (502126) Costco
B0473901 Schenk Farms 17 1/2" (XS Red)
B3473601 Freeman Herbs Small Carton
B0159201 Westbrook floral Box 10 - XS
B1787601 ABC Group Car802780-9929
X8775301 Dafco Filtration 16-20-2(40-010)
B0419301 Andrew J. Hendricks (Box 10S) 10"

SPEED TRIAL
Date Customer Name
Order # Supervisor
Box ID
Shift Machine#
Speed Trial:
Challenging the current machine speed to achieve free speed opportunity and identify Speed at which
Road Blocks / Constraints are impeding further speed increases.
Note:
Speed is to be moved up in increments ensuring necessary run stability prior to increasing again, a good
guide is 10 - 15pc increments stable for 3-5 minutes.
Speed Duration Quantity

Trial # Description of Speed Limiting Problem (If Any)
pcs/min) at Speed Produced
1 Document Start base speed / conditions
10
Please return to Supervisor at end of order
Target Kicks Actual Kicks Avg
Machine: 081 RDC Date: Shift: Operator: (whole shift) 12,800 (this shift) Kicks/hr
16,000
Top Problem and Action Taken
Initial
Supv
Hr
14,400
12,800
1
11,200
9,600
2
Total Kicks Made
8,000
6,400
3
4,800
3,200
4
1,600
0
5
HOUR 1 2 3 4 5 6 7 8
Kicks (# last HR)
Total Kicks 6
Downtime (for Hr)
Speed (kicks/min) 7
Tgt Speed 90 90 90 90 90 90 90 90
Available at Set Up? (Y/N)
Target Actual 8
Order Time Time Stock Ink Plates Cut Die Paperwork Pallets
20
Target Actual Available at Set Up? (Y/N)
20 Order Time Time Stock Ink Plates Cut Die Paperwork Pallets
Setups: 20 20
20 20
20 20
20 20
20 20
RDC Recipe Card Customer: Estimate #:
Box i.d
Machine(s): Minimum Speed Max. Speed Achieved:
Feed Table: O/S Front Stop: D/S Front Stop:
Backstop: O/S Side Guide: D/S Side Guide:
Feed Roll: Kicker Bar:
Print Station 1: Registration: Lateral Registration:

Anilox: O/S Pull Collars; D/S Pull Collars:
Print Nip: Pull Collar Nip:


Die Cut: O/S Pull Collar: D/S Pull Collar:

Registration: O/S Score Head: D/S Score Head:
Lateral Registration: O/S Trim Head: D/S Trim Head:
Pressure: Die #: Distance Offset:
Stacker: Layboy Belt Speed: Stacker Belt Speed:

Interrupt Time: Batching Mode: Beater Bar: On / Off
O/S Guide/Tamper: D/S Guide/Tamper: Snubber Wheels:
O/S Centre Post: D/S Centre Post: Hold-down Wheels:
Layboy Belts: Top line = Distance of the base of the layboy arm from centre line
Bottom line = Distance of the layboy arm from the centre line of the support bar
#1 #2 #3 #4 C/L #5 #6 #7 #8
Setup Photographs

Operating system – OPX elements

A HIGH-LEVEL PLANT ASSESSMENT AIDS IMPROVEMENT ACTION
PRIORITIZATION
Introduction
MIFA • Material and Information Flow Analysis (MIFA) depicts all the actions required to
bring a product through the flow from raw materials to the customer
• A MIFA is a one page, end to end overview of the entire operations, opportunities
and bottlenecks
• Creating a MIFA forces you look at the big picture, not just the individual
processes or tasks. The goal is to optimize the whole, not the individual
components
• Information gathered to create the MIFA should be obtained first-hand, and
directly from observations the shop floor
OEE
• Overall Equipment Effectiveness (OEE) is a measure to evaluate the
productiveness of a machine or a production line
• The higher the OEE, the more good product per shift a machine or line produces
• OEE analysis is a tool used to analyze equipment performance, and should be
used in support of business objectives where there is a clear need
– Bottlenecks (machine or process) which constrain the capacity of a value stream
to meet customer needs
– High capital cost equipment where utilization must be raised to reduce asset
size
THERE ARE 6 STEPS TO CREATING A CURRENT STATE MIFA
1. Define Customer Requirements

2. Draw Process Steps
3. Gather Process Data
4. Gather Inventory Data
5. Determine External Material flow
6. Determine Information flow

Source: McKinsey
STEP 1: DEFINE CUSTOMER REQUIREMENTS EXAMPLE
Material and Information Flow (MIFA)
Production scheduling Customer service

Daily orders ~ week in advance
Orders 1x/week Orders daily
Supplier Customers
2-4 week Customer lead-time ~ 3-5 days

lead-time
Key Points:
• Draw in customer(s)
• Identify customer lead time(s)
• Draw in company and relevant departments for information flow
• Draw in main supplier(s)
• Identify supplier lead time(s)
• Draw information flows between departments

Source: Team analysis
STEP 2: DRAW PROCESS STEPS EXAMPLE
Material and Information Flow (MIFA)

Supplier Customers
2-4 week Customer lead-time ~ 3-5 days

lead-time Ward RDC
Big Staley
Corrugator 38 Saturn Bander
50 Saturn
Key Points:
• A Process is NOT the same as a
50 Kop
department or function
• A process is an activity where material can
stagnate either side
FLX 66
• Parallel processes are to be drawn above
each other-- although, this may not always
be possible (e.g. when there are 6
converting machines)

Source: Team analysis
STEP 3: GATHER PROCESS DATA KEY
EXAMPLE
-/-/- = FTE/Shift
Output = MMSF/mth
Material and Information Flow (MIFA) OEE*= % scheduled
Lf/hr = Feet per hour
K/hr = kicks per hour
Supplier Customers
2-4 week Ward RDC Customer lead-time ~ 3-5 days

lead-time
3/3/3
• Converting is current
Speed bottleneck, given corrugator
Output==215
h
Key Points: 21% OEE = 21% has capacity to generate
external sheet work
K/hr = 1,900
• Number of operators • Converting improvements
will shift bottleneck to the
per shift corrugator
Big Staley
• Output
2/2/2
• OEE
11% Speed
Output==8
2h
Corrugator OEE = 14% 38 Saturn Bander
• Kicks per hour K/hr =1,223 2/2/2
6/4/4 1/1/1
• Use callouts to Speed
Output==271
h Speed
Output= =2 12
h Speed
Output= =2 71
h
highlight key OEE = 58% 17% 50 Saturn OEE = 16% OEE =28%
K/hr = 2,462
observations LF/hr = 23,618
3/3/3
Speed = 2 h
23% Output =16 50 Kop
OEE = 19%
Corrugator capacity is greater K/hr = 2,252 2/2/2
• Bander is not a bottleneck
than converting, however
Speed
Output= =2 10
h • Improvement opportunity
excess capacity is filled by
OEE = 15% with steady operations and
sheet work 14% improved staging
FLX 66 K/hr = 1,783
-/2/-
Sheet Output
3% Speed
Output==22h ~ 8 MMSF
OEE = 7%
K/hr = 596 11%
Source: Team analysis, client productivity data (Sept 2006). *Based on 80% OEM for converting, FI targets for corrugator and machine measured cycletime for the
Bander
STEP 4: GATHER INVENTORY DATA KEY
EXAMPLE
-/-/- = FTE/Shift
Output = MMSF/mth
Supplier Customers
2-4 week Ward RDC Customer lead-time ~ 3-5 days

lead-time
3/3/3
• Converting is current
Key Points: Speed
Output==215
h bottleneck, given corrugator
21% OEE = 21% has capacity to generate
• use a triangle if inventory is not K/hr = 1,900
•
external sheet work
Converting improvements
controlled will shift bottleneck to the
corrugator
• use a separate triangle for each Big Staley
location, indicate a snapshot of total 2/2/2
units stored
11% Speed
Output==8
2h
K/hr =1,223 2/2/2
~30-40 6/4/4 1/1/1 <2/3 day
days Speed
Speed
Output==271
h Output= =2 12
h Speed
Output= =2 71
h
OEE = 58% 17% 50 Saturn OEE = 16% OEE =28%
LF/hr = 23,618 K/hr = 2,462
2/3 day 3/3/3
Speed = 2 h
OEE = 19%
Corrugator capacity is greater K/hr = 2,252 2/2/2
• Bander is not a bottleneck
than converting, however 0 day
Speed
Output= =2 10
sheet work 14% improved staging
FLX 66 K/hr = 1,783
-/2/-
Sheet Output
3% Speed
OEE = 7%
K/hr = 596 11%
Bander
STEP 5: DETERMINE EXTERNAL MATERIAL FLOW KEY
EXAMPLE
-/-/- = FTE/Shift
Output = MMSF/mth
Supplier Customers
Daily production
Ward RDC Customer lead-time ~ 3-5 days
Schedules to plant
and daily variances
3/3/3
back from plant • Converting is current
2-4 week
lead-time Output==215
h
external sheet work
K/hr = 1,900
• Converting improvements
corrugator
1x/week Big Staley ~25/day
2/2/2
11% Speed
Output==8
2h
K/hr =1,223 2/2/2
~30-40 6/4/4 1/1/1 <2/3 day
days Speed
Speed
Output==271
h Output= =2 12
h Speed
Output= =2 71
h
LF/hr = 23,618 K/hr = 2,462
Key Points: 2/3 day 3/3/3
• draw deliveries from Speed = 2 h

OEE = 19%
supplier and to customer K/hr = 2,252 2/2/2
Corrugator capacity is greater 0 day
Speed
Output= =2 10
h • Bander is not a bottleneck
• Typical information:
than converting, however
14%
OEE = 15% • Improvement opportunity
– Shipment
sheet work
method FLX 66 K/hr = 1,783 with steady operations and
improved staging
– Shipment frequencies -/2/-
Sheet Output
3% Speed
OEE = 7%
K/hr = 596 11%
Bander
STEP 6: DETERMINE INFORMATION FLOW KEY
EXAMPLE
-/-/- = FTE/Shift
Output = MMSF/mth
Supplier Customers
Daily production Customer lead-time ~ 3-5 days

Schedules to plant Ward RDC
and daily variances
3/3/3
2-4 week
back from plant • Converting is current
lead-time Output==215
h
external sheet work
K/hr = 1,900
• Converting improvements
corrugator
1x/week Big Staley ~25/day
2/2/2
11% Speed
Output==8
2h
K/hr =1,223 2/2/2
~30-40 6/4/4 1/1/1 <2/3 day
days Speed
Speed
Output==271
h Output= =2 12
h Speed
Output= =2 71
h
LF/hr = 23,618 K/hr = 2,462
Key Points: 2/3 day 3/3/3
• Identify how information Speed = 2 h

OEE = 19%
flows between K/hr = 2,252 2/2/2
Corrugator capacity is greater
processes • Bander is not a bottleneck
than converting, however 0 day
Speed
Output= =2 10
sheet work 14%
• Identify types and FLX 66 K/hr = 1,783 improved staging
frequency of scheduling -/2/-

Sheet Output
3% Speed
OEE = 7%
K/hr = 596 11%
Inwards goods Corrugating Converting Shipping
Source: Team analysis, client productivity data (Sept 2006). *Based on 80% OEM for converting, FI targets for corrugator and machine measured cycletime
for the Bander
OEE FACTORS
OEE is derived from 3 factors:
OEE = Availability rate X Performance rate X Quality rate
Availability rate Performance rate Quality rate
How much time per shift How well did the machine How many products were
was the machine actually perform (compared to the good the first time?
running? rated speed) when it was
actually running?

6 BIG LOSSES OF MACHINE TIME
The 3 primary factors of OEE are typically influenced by “6 big losses”
1 Breakdowns
Availability rate Downtime losses
2 Setups
3 Minor stops
Performance rate Speed losses
4 Speed loss
5 Scrap
Quality rate Quality losses
6 Rework

ANALYSIS OF THE 6 BIG LOSSES – AVAILABILITY
Time losses for breakdowns and setups need to be understood to improve the
availability rate
Examples
Breakdowns:
• Transfer of product is not possible due to broken
• Lost time due to machine failure
conveyor or faulty automation
• Loss measured by operator/ • Machine is shut off because of failures
maintenance tracking system
• Equipment stopped because operator is missing
Examples
Setups: • Fixtures and/or material types need to be changed
• Time interval between last good because of different product (product change)
part from prior run to first good • Equipment fixtures/tools need to be changed (tool
part from new run with machine change)
operating at rated speed • Periodic tests must be performed for product quality
• Measured by operator or process capability
downtime tracking or time study

ANALYSIS OF THE 6 BIG LOSSES – PERFORMANCE
Time losses for idling and minor stoppages as well as speed losses need to be
understood to improve the performance rate
Examples:
Minor stops:
• Downstream equipment is idle because product
• Lost time due to unplanned
supply from previous process is insufficient
stoppages other than
• Operators pause to “tweak” equipment (e.g., label
breakdown or setup
dispenser needs a minor fix or reloading; normal
• Measured through operator
work flow is interrupted)
tracking or calculated
Examples:
Speed Loss:
• Actual index time for an automated line is longer
• Lost time due to machine
than the ideal index time of 60 seconds (e.g.,
operating at slower speed than
produced 30 pieces in an hour when we should have
process design standard
been able to make 60 pieces in that period of time)

ANALYSIS OF THE 6 BIG LOSSES – QUALITY
Time losses for scrap and rework need to be understood to improve the quality rate
Examples:
Scrap:
• Production time lost producing • Products that are caught at the source and scrapped
unusable materials
• Materials that are lost in the process
– Yield losses
• Measured scrap then converted – Material leakage/salvage, etc.
to time loss
– Startup material loss
Examples:
Rework: • Product that is rejected at final inspection, or end of
• Production time lost from process checks, then reworked to an acceptable
defective parts rejected at end quality level
of line or afterwards
• Measure usually a reject log of
total parts lost then calculated
for lost time

OEE – HOW TO CALCULATE
Total Time
(i.e., 24 hours x 7 days)
Non working time
Total Working Time
(e.g. weekends)
Total Available Time Planned stops

(i.e., periodic scheduled maintenance)
Baseline, = 100% The 6 big losses reduce machine performance:
Operating Time Breakdown Availability = (available time) - (Downtime)

(available time)
(Downtime losses) Setup
Running Time Minor Stops Productivity* = (operating time) - (Speed losses)

(operating time)
(Speed losses) Speed Loss
Scrap Quality = (processed amount) - (Scrap+Rework)

Value-added (processed amount)
(Defect losses) Rework
Overall Equipment Effectiveness = Availability x Productivity x Quality

OEE ANALYSIS HELPS PRIORITIZE OPX OPPORTUNITY Improvement potential
Corrugating OEE
Percent of time Effort and timing of OPX
elements is phased based on
3 9
100
93 15
throughput potential
5 2
17
61
3 0
Key learning
58 • Develop OEE across all
machines in order to get
accurate perspective of
Available Break- Setups Oper- Minor Speed Running Scrap Rework Effective performance losses
time downs ating stops loss time time
time
• Not all improvement
potential may be required
Converting OEE
Percent of time* as only bottleneck
improvement will increase
13 4 8 throughput of plant
100 45
2
• Collect detailed OEE
information that can then
53 19
be used as data for
17 – Set-up analysis
17 16 – Minor stop reasons
1 0
Available Break- Setups Oper- Minor Speed Running Scrap Rework Effective
time downs ating stops loss time time
time

Source:Team analysis
OEE – breakout simulation

OEE BREAKOUT SIMULATION
• Learn to do a basic calculation of OEE

Purpose
1. Undertake simulation
Process • Use plant production data sheets to determine overall OEE
• Analyze minor stops data sheets to determine quantities of each major
OEE category
• Calculate category percentages
• Build OEE waterfall
2. Discuss with group results
• Completed OEE “waterfall” chart

End
products

Plant targets introduction

PLANT PERFORMANCE TARGETS ARE REQUIRED TO DRIVE MACHINE
PERFORMANCE AND ABSOLUTE THROUGHPUT
OPX main focus
Can expect plant throughput to

Performance
decline initially as time is required
to trains crews and fix machines • MMSF/MCH hour*
• Kicks/min*
• LF/min*
Actual throughput • OEE
• MMSF/Day (by shifts worked) X
Time
• MCH hours
Monthly targets difficult due to
• Number of shift plant is open
different number of days worked
MCH hours = scheduled

time and excludes
• Cleaning
• PMs
• Training
• Time when no work exists
Smurfit-Stone Container * Operational Excellence Boot Camp

*Target set on performance boards 66
APPROACH FOLLOWED FOR SETTING PLANT TARGETS
Description
• Develop an overall target that is achievable yet is large enough
Set plant to drive real improvement
target
• Consider how throughput improvements result in natural

operational breakpoints
Review
breakpoints
• Rebalance machine targets to ensure

– All expected to improve
Set
– OEEs are similar, e.g., similar performance expectations exist
machine
– Targets are not already frequently being met
targets
• Check that new targets are reasonable compared to industry or
SSCC performance
Sanity
check

A TARGET IS SELECTED USING A RANGE OF CRITERIA
Criteria for selecting Sample example
1 Required minimum as • Scaling assumes a productivity

What should the part of OPX improvement of ~10%
plant target be? • Alpha plants will eventually need to
double throughput (>100%) with help of
new capital
2 Target is achievable yet • Research shows targets need to be 15-

bar is high enough to 30% to evoke real change/transformation
ensure step change
occurs
3 Review bottom-up • >20% overall improvement seemed

30%? improvement potential at reasonable based on OEE – this is
plant limited by corrugator
20%? • However once sheet removed and low
productive machines closed converting
10%?
has to improve by >40%
Overall target of 20% throughput
set – OPX team has to get
significant way to achieving this

CONSIDER THROUGHPUT BREAKPOINTS Sheet output
Machine Throughput production Throughput uplift

center MMSF/month Percent change
0 Current 1 Improve 2 Improve 3 Improve

operations Bander Convertin Corrugating
g 85
Corrugator 71 71 71 +20%
8 8
63 63 71
95 85
Converting +35%
63 63 20
75
Bander/Total 71 71 71 85 +20%
8 8
63 63
To ensure plant
can operate at
new target
No MMSF impact Sheet work stopped and Corrugator ensure that plant
but removed converting absorb work. As improvements does not run out
improvement converting outpaces Corr. result in overall of work by
mindset issue then stock-outs expected. plant output bringing in from
Excess converting capacity increasing other locations
may require machine to
Smurfit-Stone Containerclose
* Operational Excellence Boot Camp 69
Source:Team analysis, Productivity data for September 2006
TARGET FOR PLANT IS CASCADED TO A MACHINE LEVEL
Sample OPX plant
Baseline OPX
* target***
Avg speed** OEE Avg Speed** OEE

Machine Output/MH Percent Output/MH Percent
Plant improvement
Corrugating (MLF/MH) (MLF/MH) limit capped by
Corrugator 23.6 58 28.5 70 corrugator throughput
potential. Converting
Corrugating total 58 70 overall improvement
set to balance output
Converting - FFG (Kick/MH) (Kick/MH) with corrugating
38” Saturn 2,500 16 3,500 22
50” Saturn 2,300 19 2,800 23 Individual machine

targets set by
FLX 66 600 7 - - • All machines
require improvement
50” Koppers 1,800 15 2,800 23 • Balance OEE- no
machine worse than
Converting - RDC (Kick/MH) (Kick/MH) 50 Saturn with most
Ward RDC 1,900 21 2,600 29 setups
Big Staley 1,222 14 2,000 22

Converting total 16 24
*Baseline speed, output, and machine hours from September 2006; OEE from observation
**Avg. Speed calculated as total output/machine run hours
***All OPX targets assume current product mix
Source:SSCC operations report; team analysis
COMPARE MACHINE TARGETS TO INDUSTRY BENCHMARKS TO TEST
ABILITY TO ACHIEVE
Sample OPX plant
MSF/MH Benchmarking*
Machine Baseline OPX target FBA avg FBA top 15%

Converting - FFG
38” Saturn 22 31 28 45
50” Saturn 30 37 34 57
50” Koppers 20 32 34 57
Converting - RDC
Ward RDC 32 43 26 45
Big Staley 17 29 26 45
• OPX targets based upon OPX diagnostic of improvement opportunity

• All OPX targets (with exception of Ward RDC) above current SSCC peer average, but
below FBA top 15% of industry performance due to performance gap and asset material
condition
*Benchmarking detailed per machine type and size as part of scaling team effort; all benchmarking completed
on a MSF/MH basis for comparison purposes
Source: Team analysis; SSCC operations report
Plant targets breakout exercise

PLANT TARGETS: BREAKOUT EXERCISE
• To develop group understanding of factors considered when

setting OPX plant target
Purpose
• Repeat twice (once for each case example following):

– Pair up with person next to you
Process – Take 10 min to determine plant target (as % uplift from
current MMSF)
– One member of team write on whiteboard target under
heading provided (0-9%,10-19%,20-29%,…)
– Group discussion on variances of results and the reasons
why variances existed
• Target developed for each of the case examples

End products

CASE EXAMPLE 1
• Plant started to change program one year earlier and has already increased
Background throughput by 10%
• Plant leadership fully supports OPX
• This is an Alpha plant – will be given as much customer work as it can produce
• Within 12 months a new corrugator and new converting equipment will be installed.
The Scaling team expects throughput will be 1.8 MMSF/shift
Plant Corrugator Converting Bander

(1x) (5x) (1x)
Production (MMSF/shift)
• Current 1.0 1.0 1.0
• Max* 1.2 1.5 1.8
• Uplift +20% +50% +80%
Note:* Based on bottom-up OEE improvement potential

CASE EXAMPLE 2
• Plant has had throughput decline over past year by 10%

Background • The decline started when key plant personnel left through promotions or retirement
– SSCC considers remaining personnel from supervisors to the plant manager to be
below average performers
• The remaining plant leadership are very resistant to OPX – seen as takeover in
leadership and threat to their jobs
• This is an Alpha plant – will be given as much customer work as it can produce
• The Scaling team have no new capital plans for the plant
Plant Corrugator Converting Bander

(1x) (5x) (1x)
Production (MMSF/shift)
• Current 1.0 1.0 1.0
• Max* 2.0 2.0 1.4
• Uplift +100% +100% +40%
Note:* Based on bottom-up OEE improvement potential


Welcome To Whitby: Production Manager: Wayne Flowers

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WELCOME TO WHITBY

Smurfit-Stone Container * Operational Excellence Boot Camp 1

Smurfit-Stone Container * Operational Excellence Boot Camp 2

DAY ONE – Monday, January 7th, 2008

Smurfit-Stone Container * Operational Excellence Boot Camp 6

Smurfit-Stone Container * Operational Excellence Boot Camp 7

Smurfit-Stone Container * Operational Excellence Boot Camp 8

Smurfit-Stone Container * Operational Excellence Boot Camp 9

• To demonstrate how Safety, Quality, and Waste Reduction,

• Team discussions on how to OPX can reinforce Safety,

• Understanding of how SSCC’s Safety, Quality, and Waste

Smurfit-Stone Container * Operational Excellence Boot Camp 10

Manufacturing, by definition, is dangerous work. And by running the machines faster in

Smurfit-Stone Container * Operational Excellence Boot Camp 11

Smurfit-Stone Container * Operational Excellence Boot Camp 12

Smurfit-Stone Container * Operational Excellence Boot Camp 13

Smurfit-Stone Container * Operational Excellence Boot Camp 14

Evidence that safety is a priority in the plant?

Evidence that quality is a priority in the plant?

Evidence that waste is a priority in the plant?

Smurfit-Stone Container * Operational Excellence Boot Camp 16

Smurfit-Stone Container * Operational Excellence Boot Camp 18

Established • Baseline performance in safety, quality, waste and

Throughput • Operate machines at a higher level of performance

Leverages • Clearly define the standardized “Smurfit-way”

• Operating targets for regions, areas, and plants

Smurfit-Stone Container * Operational Excellence Boot Camp 19

OPX themes “Basic Manufacturing”

Core technical • Safety • Performance • Supply chain/trailer

Operational Excellence (OPX) focuses on creating and managing a

Smurfit-Stone Container * Operational Excellence Boot Camp 21

Prepare Diagnose Design Implement Sustain

Timing (weeks) Prior to start 2 0-1* 10 Ongoing

Smurfit-Stone Container * Operational Excellence Boot Camp 23

Plant Average - - - - - 100%

Plant Average - - - - - 100%

TMR – verification of diagnostic and

 New West - Jan. 14 -18

DESIGN: Prioritize and develop targeted

Smurfit-Stone Container * Operational Excellence Boot Camp 26

Smurfit-Stone Container * Operational Excellence Boot Camp 27

Smurfit-Stone Container * Operational Excellence Boot Camp 28

• Energetic and enthusiastic

Smurfit-Stone Container * Operational Excellence Boot Camp 29

Take the plant through a Ensure the transformation is

Key Personnel Expectations

Smurfit-Stone Container * Operational Excellence Boot Camp 31

Smurfit-Stone Container * Operational Excellence Boot Camp 32

“The way physical

“The way people think, feel,

Smurfit-Stone Container * Operational Excellence Boot Camp 33

1 • Clear links between the technical operating system to manufacturing

2 Management • Rigorous performance and health management systems

3 • Explicit shifts in mindsets and behaviors down to the front line

Diagnose Create flow

Design Build capability Create visual

Plan Build in quality Coach managers

1 The goal of mindset and capability change is to instill a

2 “Hard” changes to the operating system and management

6 Sustainable performance improvement requires the line

Smurfit-Stone Container * Operational Excellence Boot Camp 38

A. Perform a line study involving collection of data to determine total throughput

• Eliminate or reduce throughput limiting factors and increase Overall Equipment

Avg speed OEE Avg Speed OEE