I led a six-month turnaround project in a mill’s converting department, following a phase I had co-led there the previous year. The work covered inventory, scheduling, changeovers, overruns, lead times and machine economics, alongside gemba walks, product flow and correcting safety violations.
I established a project charter, named responsibilities and a team across shipping, converting, logistics, planning, data and IT. Weekly working sessions, biweekly performance reviews and monthly sponsor reviews gave the work a delivery rhythm. I kept it moving after the project lost its executive sponsor in April and presented the costed close-out to mill leadership in July.
Operating results and findings
- Find where the problem is happening
- I built a dashboard by machine and shift that showed where unscanned inventory was concentrated, giving the team a specific basis for coaching and follow-up.
- Give sales usable lead-time commitments
- I replaced calendar dates with lead times in weeks—two to seven depending on the line—compared them across the mill network and established a named owner and weekly update process.
- Separate scheduling problems from production problems
- Analysis of about 4,100 tons of gross overrun across 2,280 closed orders attributed 57% to scheduling and 43% to production. The balance differed by machine, pointing to different corrective work on each.
- Bring customer-held inventory within target
- The inventory workstream was completed with the stock back within its agreed targets.
Rebuild the economics from demonstrated performance
The existing costing still used older machine speeds. I rebuilt the costs using the preceding three months of demonstrated rates and current wages, then separated the value of a better production mix from the value of greater operating consistency.
| Operating choice | Opportunity | Condition |
|---|---|---|
| Change the production mix | ≈$306,000 | Current demonstrated rates, demand already sold, no new capital. |
| Sustain the mill’s best demonstrated rate | ≈$574,000 | Maintain the rate already achieved in April. |
| Run consistently at target rates | ≈$1.22 million | Deliver the higher-rate operating consistency. |
The immediate recommendation used performance the mill had already demonstrated. The higher-rate scenarios showed the additional opportunity from improving consistency.
Make the right operating decision
The analysis showed that board lost while producing sellable output was consuming more value than the department’s conversion margin. It also identified a conversion step whose flat charge failed to reflect the effect of setup time on different order sizes.
I also showed how the mill could hold its inventory band by clearing identified base inventory, preserving profitable production volume that an output cap would have sacrificed.
I challenged the initial conclusion that one line should stop: at a rate the mill had already achieved, that line became profitable. I recommended fixing the rate performance before exiting the product. Leadership received a set of specific operating and pricing decisions, with the economics behind each.
