Green Lean Six Sigma at NewPage

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Green Lean Six Sigma at NewPage
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Agenda

• NewPage - Who we are
• Our Vision
• Operating Model
• Sustainability It IS our future
• Our Pillars
• Lean Six Sigma Support the Pillars
• A sampling of our Projects

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NewPage Overview Customers Markets
Diversified Customers A Few Examples

• 42 - Corporate collateral / Direct mail / Other
  Comml Print
• 18 - Magazines
• 17 - Catalogs
• 8 - Labels / Packaging
• 6 - Books
• 10 - Coupons / Inserts / Other
• Distributed through Channel Partners
• ( 60 via Merchants, Brokers Printers)

Primarily in the Advertising Infrastructure
Business
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NewPage Manufacturing Overview
Raw Materials
Manufacturing
Rolls and Sheets
Customer End Products

• 10 manufacturing mills
• 7,800 highly skilled employees
• 9 Billion lbs of annual capacity for high quality
  printing paper
• 1 Market Share Position
• 1 Lowest Average Cost Position w/ 98 Integrated
  Pulp Supply
• Unparalleled breadth of high quality products and
  services

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NewPage History

• Formed in May 2005 with acquisition of
  MeadWestvaco Papers Group
• Acquired Stora Enso North America in December
  2007
• A combination of several unique and complementary
  cultures strengths
• Mead
• Westvaco
• Boise Cascade
• Consolidated Papers
• Lake Superior Paper
• Repap
• Stora

New Headquarters in Miamisburg, OH
A 4 year old company with 100 years of History
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The NewPage Vision
We will be the best printing paper business in
North America

• Preferred supplier of high-quality printing paper
• Employer of choice offering a safe, rewarding
  place to work and grow
• Financial returns exceeding 13 ROIC

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Operating Model

• We will deliver financial returns that exceed our
  cost of capital and foster long-term
  sustainability by
• Continuously lowering our costs while increasing
  high quality
• Steadily increase our cost advantage versus the
  competition
• Invest in technology and innovation with
  exceptional returns
• Focusing on customer needs to optimize value and
  margin mix
• Provide reliable sales and service support
• Offer differentiated products and services to
  expand our business and margins
• Lean Six Sigma - Accelerating process improvement
• Dedicated resources 100 employee engagement
• HPO - Expecting and rewarding high performance
• Ensuring visible accountability of both teams and
  individuals
• Rewarding measurable results while exhibiting our
  core values

2 Key Operating Priorities
2 Cultural Initiatives
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• Sustainability It IS our Future

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Sustainable Pillars
CEO Senior Leadership Team
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Lean Six Sigma Support the Pillars
NewPage Environmental Sustainability
Fiber Mngmt
Sustainable Energy
Global Environment
Renewable Resources
Water, Energy, Air
NewPage Sustainability Steering Team
Lean Six Sigma
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LSS NewPage Deployment
Yellow Belts (2261 out of 7000)
Green Belts (356 out of 1000)
Number of People
Master Black Belts (80)
2009
2007
Implementation Time
NewPage launched its LSS Deployment in 2007
significant investment in resources training
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Our Toolkit of LSS Methodologies
Number of Issues
Choose the right tool for the job
Just Do It
Rapid Action
DMAIC Lean
Innovation
RLSS / SCORE
Increasing Complexity and
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LSS Water, Energy, Air
NewPage Environmental Sustainability
Fiber Mngmt
Sustainable Energy
Global Environment
Renewable Resources
Water, Energy, Air
NewPage Sustainability Steering Team
Lean Six Sigma
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Green Lean Six Sigma Projects 2008
Examples of just a few of the in-mill projects to
support Reduce Water Energy Consumption Air
Emissions
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• DMAIC Project Example
• Reduce 11 Boiler Excess O2

Use data dig down into the details to find
root causes.
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Reduce 11 Boiler Excess O2
Problem Statement 11 Boiler burns coal, biomass
and tire-derived fuel to generate steam
electricity for one of our mills. Over the past
few years, excess O2 levels on 11 Boiler have
risen to an average of 4.02. This results in
having to burn more fuel (to heat up the excess
air)to get the same amount of steam and also
results in accelerated boiler tube erosion due to
increased air velocities.
In Scope Combustion Controls Tramp Air
Biomass Distribution on grate
Objective Statement Reduce the excess O2 levels
on 11 Boiler from 4.02 to 2.6 while
maintaining opacity limits and CO permit levels.
DMAIC
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Detailed Process Map
Pre Heat Air Measure air temp leaving Tubular
heater Add/Reduce steam to steam coils
Input Type UF Air Flow
X,C Coal Flow X,C Bark
Flow X,C CO
C Opacity X,C WW
Moisture N Coal Moisture
N Sludge Moisture N Air Temp
C Bark distribution C Tramp Air
C OFA Flow X,
C Sec Air Flow X, C Boiler Operators
X, S WWC Operator. X, S WW Mix
X, C Pulverizer Fineness
C Pulverizer Temp C O2 Trim Control
X, C Bark grate speed C
Supply Air To Boiler Measure WB pressure Set
Force Draft Fan Setpoint Measure Furnace
Draft Set Furnace Draft Setpoint
30 Inputs Identified
Outputs Opacity NOX CO O2 Steam Stack Temp
Supply Fuel to Boiler Start Ignitor Open Gas
Valve Start Pulverizer Start Bark Screws
Control Fuel Air Mix Measure Coal Flow Measure
Screw Speed Measure NG Flow Ratio Secondary air
to Coal NG flow Ratio UFA to Screw speed Ratio
OFA to Screw Speed Trim air to O2 setpoint
DMAIC
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Cause Effect Matrix
PRIORITIZED LIST OF Xs O2 Control
system Secondary Air control system Operator
training/SOPs Overfire air control
system Undergrate air control system Fuel
addition control system
DMAIC
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Analysis of Secondary Air Flows

• Evaluation of the Secondary air flows through
  the East and West side air dampers found a
  significant difference between the two.

• Visual inspection in the field found that the
  linkage on the east damper was longer than the
  west.
• This caused the east damper to always be open
  approximately 15 more which in turn added more
  air than needed to that side.

• The linkage was promptly adjusted and the flows
  are now balanced.

DMAIC
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Summary of 11 Boiler Improvements

• Corrected differences in East/West damper
  linkages to balance air flows
• Updated calibration curves for air needed on each
  type of fuel
• Redesigned the air control logic/sequencing for
  burning different fuel combinations

Sometimes the root causes of our problems arent
complex. You just need to figure out what to look
for !
DMAIC
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Final Assessment - 11 Boiler Excess O2
Before 4.02 ?
After 2.60
85 reduction in variation!
Reduction of 1,866 tons/year of coal !
DMAIC
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• RLSS Project Example
• Reduce Energy Costs
• during 25 Boiler Outage

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The Power Brokers - Team Charter

• How can we
• Reduce Total Mill Steam and Electrical Demand
  During the No. 25 Boiler Outage
• In order to
• Reduce the Nearly 900K in CostsExpected from
  firing No. 26 Boiler on Nat Gas and Increased
  Purchased Electricity
• Key Considerations / Boundaries
• Boiler Outage expected to last almost 2 weeks
• Replicates SCORE event at Rumford (7 Cogen
  Outage)

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Top 10 Action Ideas

• Final Action Reports Action Champions
• Optimize Basis Weight/Grade Mix to MinimizeSteam
  Demand . Bruce D.
• Manage Multiple Outages . John D.
• Get No. 2 Evaporator on 6 Body/6 Effect
  Operation prior to Outage. Bill H.
• Minimize Steam Losses . Tim N.
• Minimize Heating/Cooling duringthe 2 week
  Outage . Rich L.
• Manage Pulp Supply . Bill H.
• Minimize Electrical Usage (pumps, agitators,
  offices) . Don W.

• MINIMIZE STEAM LOSSES
• Email Request for Leak Survey to all
  Superintendents- Tim
• Obtain Steam Leak Calculator- Doug
• Gather Leak Results- John
• Apply Leak Calculator and Prioritize- Tim
• Verify Top Priority Leaks are Scheduled for
  Repair- Bill
• Send Blurb to Newsletter- Don
• Evaluate Steam Trap Survey Results- Tim
• Provide Process Owners Prioritized List of
  Traps - Bill

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WEEKLY ACTION MEETINGS

• A very focused, 60-day effort.
• Weekly action meetings to report progress.
• Work is accomplished between meetings.
• Top ideas are put into action first. More are
  worked on as the team accomplishes tasks.
• High sense of team accountability!

OUR GOAL
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Power Brokers Wrap Up

• Avoided running the back-up boiler for 20 days
• Reduced steam needs for short-term PROCESS
  HEATING
• Natural Gas savings
• Reduced Electrical Use
• Reduced Air Conditioning Load
• Purchased electricity savings
• Opportunities for leveraging a template for
  future Outages!

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• Are we making an impact?

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Impact on Environmental Performance
Confident that we are working on the right things
in a difficult economic environment.
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LSS Impact on the Business
Cumulative Hard Benefits
4-5 X payback after 18 Months
Payback Ratio


Cumulative Investment
6
5
4
Payback Ratio
Breakeven Point (8 months)
3
2
1
0
6/07
6/08
12/08
8/06
1/07
1/08
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• Questions ?