Paper Companies Group has grown through acquisitions from a single mill base to a multinational group. It is now producing 1 million tonnes paper with over 1000 employees.
accounting
Description
Paper Companies Group
Paper
Companies Group has grown through acquisitions from a single mill base to a
multinational group. It is now producing 1 million tonnes paper with over 1000
employees. The Paper Companies Group consists
four companies: Corp A, B, C and D. Their core values and spirit are the things,
which set the companies apart from – and will enable to surpass – the
performance of their competitors. The spirit is to constantly challenge the
limit, and strive for victory. The group companies believe they will be
victorious when they become – and remain – the lowest cost, highest efficiency,
and most profitable companies in their industry.
The
organization has acquired paper mills throughout Canada, France and US. Most acquired mills are in operation for over
50 years. The equipment of the mills are aged. They require extensive repair
and maintenance to have stabled production. The workforce in the mills are
unionized with high manpower cost. The production process for these mills are
similar and the paper products follow the same industry standards.
This
year, the mills have been focusing on maintaining the reliability of the
production and reducing the cost. The
group has an incentive program based on mill profitability as well as
productivity performance. To facilitate the
performance monitoring, the management has requested to set up a dashboard to track
operation reliability on monthly basis. The results will also be used as part
of the incentive calculation.
The
objective of the dashboard is to monitor all four mills performance. It should
include production volume, quality, as well as production efficiency
analysis. The planned downtime refers to
the loss time that mill has to cease production in order to perform
preventative maintenance on certain equipment.
The unplanned downtime refers to the time loss when production has to
stop because of the unforeseen issues.
The OEE is overall equipment efficiency which measures the production
based on machine capacity and availability.
Requirement:
Help the management design a one page Dashboard
including at least 5 KPI, which has to include OEE.
Your group needs to present the dashboard in class.
Each group has 10 minutes.
