Using Cash Impact of Lost Production Time to Improve Performance, 2005 Papermakers Conference
In the highly competitive manufacturing environment we operate paper mills in today, cash is king. For papermakers
maximizing net cash, per machine hour is the ultimate driver for improving operating efficiencies and is at the heart
of justification for strategic capital projects. At the same time, the business community recognizes that cash today is
worth more than cash tomorrow.
As a result, it is critical for systems that measure performance to help the organization prioritize efforts on cash
impacts. This paper discusses an approach to quantify the economic impact of lost production time in a way that
highlights opportunities for improvement. By understanding the cash tradeoffs, this approach also is effective for
comparing opportunities between competing assets within the same plant and company.
Using Cash Impact of Lost Production Time to Improve Performance, 2005 Papermakers Conference