Success Stories

ADecTec In Action: Cleaning up the costs of producing recycled paper

ADecTec provides an innovative technology designed using mathematical optimization techniques to plan paper mill operations and to optimize finite schedules of paper machines and pulping systems. The system optimizes the two schedules in concert with each other so that the overall cost of waste paper mix and virgin pulp is minimized and both paper quality and production due date requirements are met.

For conscientious consumers, the phrase “recycled from post-consumer content” can evoke a satisfied sense of doing one’s part to make wiser use of our planet’s resources. However, they may have little idea of the substantial effort and cost required to produce such goods, particularly paper products that include post-consumer fibers, which, before ending up in the finished product, require painstaking and costly methods to convert into usable materials.

 

A global manufacturer of pulp and paper knew that demand for recycled paper products would only continue to grow – and unless they could improve their production processes, so would the cost of producing it.

The subject of our case study, a global manufacturer of pulp and paper, knew that customer demand for recycled paper products would only continue to grow, particularly from their fast-food chain customers, and unless they could improve production processes, so would their costs.

The bottom line: Containing costs while meeting customer demands

Because the machines and systems used in the waste paper conversion process were independent, it was difficult to know the true costs of using certain raw materials and processes.

Consider that our manufacturer produced all sorts of paper goods – from commercial packaging to printing paper to bath tissue and paper napkins. Every day, the manufacturer was tasked with fulfilling orders that required any number of custom specifications.

ADecTec Suite Optimization for Pulp & Paper

Let’s take a brief detour for a moment, away from our manufacturer’s production challenges, to ADecTec's Advanced Technology Development Center in Atlanta, where some of our country’s brightest minds are developing solutions for the manufacturing industry and other enterprises – like the ADecTec optimization solution for pulp and paper mills.

Designed and developed by ADecTec, the suite addresses the critical issues our manufacturer was facing– how to produce pulp and paper at a lower cost, without sacrificing quality, and while always meeting diverse customer demands. Using the ADecTec suite, pulp and paper manufacturers can:

  • Optimize the inputs used in the manufacturing process

  • Drastically reduce under and over-production through synchronized scheduling of paper machines and pulping systems

  • Receive predictive alerts of key production events, such as:

  • Tanks about to overflow or run dry

  • Grade changes on paper machines

  • Create scenario-based “what if” models, such as:

  • Effect on change-over time of adding additional grades

  • Cost savings from changing recipes

  • Impact on production if schedules change or machines shut down

After an intensive look at the ADecTec suite, it became the solution of choice for our case study’s pulp and paper manufacturer.

“We were impressed with the ADecTec suite's ability to integrate with data intelligence systems we already had, like our ERP systems. We also liked how the ADecTec suite can consider multiple planning and production variables at once, something the other optimization solutions we looked at couldn’t do,” said the business analyst.

The results of synchronized pulp and paper production

The ADecTec suite's scenario-based planning models also helped the manufacturer clearly understand the actual costs of production – before presenting their customers with pricing. Using the ADecTec suite's synchronized scheduling feature, the manufacturer was able to align the schedules of its paper machines and pulping systems for optimal output. This helped one of its mills reduce work-in-process by 25%.

 

The ADecTec scenario-based planning models also helped the manufacturer clearly understand the actual costs of production– in advance of presenting their customers with pricing.

“Inventory levels are way down, and we have more predictability about the specific materials we need for conversion,” enthused the operations planner. “Whereas before, we used to frequently run out of what we needed, even though we kept more inventory on hand.”

“We can go right into the ADecTec suite, adjust the dirt count specs, and model what that change does to the total cost. So, if a customer wants a product with a certain level of brightness, we know the exact cost to produce it,” said the business analyst. The operations planner added, “This essentially solved our problem of over-delivering on paper brightness. Now we can better plan what we’re going to produce and what to charge for it.”

Conclusion: Practical considerations for the everyday user

A single, powerful tool for planning, ADecTec eliminates the tedium of hunting down other employees or wading through a host of spreadsheets to get the information you need to optimize and synchronize production.

“It’s all there in the ADecTec suite,” said the business analyst. “And the information stays current, because ADecTec integrates and updates along with our other applications, plus the user interface is easy for the ‘Everyday User’ to understand.”

Both the manufacturer’s business analyst and operations planner agree that optimized production is the way to go– and using the ADecTec suite is a good way to get there.