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Maximizing Value & Recovery: SLMA Spring Meeting Savannah, Georgia, March 8, 2019

Read our article titled "T-Bones or 2x4s?" on our blog to understand deconstructive manufacturing in the lumber industry. Learn how to improve production, fiber recovery, and value to maximize profits.

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Maximizing Value & Recovery: SLMA Spring Meeting Savannah, Georgia, March 8, 2019

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  1. MAXIMIZING VALUE & RECOVERY SLMA SPRING MEETING SAVANNAH, GEORGIA MARCH 8, 2019

  2. Client / project name

  3. Deconstructive manufacturing Read our article titled “T-Bones or 2x4s?” on our blog: https://osornoconsulting.com/blog-1 • THE LUMBER INDUSTRY IS UNLIKE MOST OTHER TYPE OF MANUFACTURING 2019 SLMA Spring Meeting - Savannah, GA

  4. Three questions to assess your organizational understanding of “deconstructive manufacturing” QUESTION #1: If you could get 1% better somewhere, where would you want to improve? • Production? • Fiber Recovery? • Value?

  5. PRODUCTION Profit Driver (2018 AVG $/MBF)More Production / More Hours

  6. PRODUCTION Profit Driver (2018 AVG $/MBF)More Production / Same Hours

  7. RECOVERY Profit Driver (2018 AVG $/MBF)Improved Recovery / Same Log Volume

  8. VALUE Profit Driver (2018 AVG $/MBF)Improved Value / Same Volume

  9. The value of 1% at a typical 100 MMBF SYP sawmill VARIATION IN IMPACT UNDER DIFFERENT MARKET CONDITIONS 2019 SLMA Spring Meeting - Savannah, GA

  10. Lumber MARKET VARIATION OVER TIME FEW MARKETS ARE AS VOLATILE AS LUMBER (JUL 2001 – JAN 2019) LAST 5 YEARS 2014-2018 2019 SLMA Spring Meeting - Savannah, GA

  11. Lumber MARKET VARIATION – LAST 5 YEARS FEW MARKETS ARE AS VOLATILE AS LUMBER (2014-2018) LAST 5 YEARS 2014-2018 2018 $ 460 2017 $ 413 2014 $ 383 2016 $ 346 2015 $ 330 2019 SLMA Spring Meeting - Savannah, GA

  12. The value of 1% at a typical 100 MMBF SYP sawmill VARIATION IN IMPACT UNDER DIFFERENT MARKET CONDITIONS 2019 SLMA Spring Meeting - Savannah, GA

  13. Three questions to assess your organizational understanding of “deconstructive manufacturing” QUESTION #2: What does your team believe to be most important? • Production? • Fiber Recovery? • Value? 2019 SLMA Spring Meeting - Savannah, GA

  14. “The more one emphasizes winning, the less he or she is able to concentrate on what actually causes success.” – Nick Saban Client / project name

  15. Three questions to assess your organizational understanding of “deconstructive manufacturing” QUESTION #3: Is your management system focused on the details necessary to maximized each profit driver? • Production? • Fiber Recovery? • Value? 2019 SLMA Spring Meeting - Savannah, GA

  16. THE ANATOMY OF PROPER GREEN LUMBER TARGET SIZES TARGET SIZE REDUCTIONS HAPPEN VIA RELENTLESS FOCUS ON THE DETAILS 3 2 1 2019 SLMA Spring Meeting - Savannah, GA

  17. TED LIONEL 2019 SLMA Spring Meeting - Savannah, GA

  18. 1 Managing Planer ALLOWANCE DRILL TESTS WITH CLEAR S.O.P.S HIGHLIGHT EXCESS FIBER DEFINE PROPER SETUP DOGGEDLY REDUCE DEVIATION 2019 SLMA Spring Meeting - Savannah, GA

  19. 2 Managing SHRINKAGE ALLOWANCE TRACK MOISTURE CORRELATION AND CALCULATE PRECISE PULL-SPECS 2019 SLMA Spring Meeting - Savannah, GA

  20. 2 Managing SHRINKAGE ALLOWANCE MOISTURE MAP…REDUCE DEVIATIONS…DECREASE DRYING...INCREASE M.C. WEEK 1 WEEK 2 Door seals? Airflow? Fan Pitch? Damper positioning? Other? WEEK 3 WEEK 4 WEEK 5 2019 SLMA Spring Meeting - Savannah, GA

  21. 3 Managing SAWING DEVIATION MONITOR DEVIATION BY MC/SAWLINE DRIVE IMPROVED PERFORMANCE MANUAL MEASUREMENTS AND REALTIME SYSTEMS PROVIDE ACTIONABLE DATA THAT ISOLATES PROBLEM MACHINES AND SAWLINES, AND DRIVES ACCURACY 2019 SLMA Spring Meeting - Savannah, GA

  22. THE ANATOMY OF PROPER GREEN LUMBER TARGET SIZES TARGET SIZE REDUCTIONS HAPPEN VIA RELENTLESS FOCUS ON THE DETAILS 3 2 1 2019 SLMA Spring Meeting - Savannah, GA

  23. GREEN TARGET SIZE REDUCTIONS 5+% RECOVERY GAIN IN JUST 16 WEEKS…WITH MORE TO COME Client / project name

  24. Significant FINANCIAL PERFORMANCE GAIN is ACHIEVABLE 2019 SLMA Spring Meeting - Savannah, GA

  25. MIKE STEELE mike.steele@osornoconsulting.com (404) 229-7721 www.OSORNOCONSULTING.com

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