QualPro Business Plan Revives Lincoln Paper
From trouble to triumph
Following TW’s review of Lincoln Paper & Tissue in
September 2007, QualPro gives a different perspective
on this born-again company
By Art Hammer
I
n January of 2004, Lincoln Paper & Tissue (LP&T) in Lincoln,
Maine USA closed its doors leaving 500 workers unemployed and
Maine’s Governor, John Baldacci unsettled. Determined to re-
employ the citizens of Maine and reopen the business that has become a
leading manufacturer of high quality paper and tissue products in the US,
Baldacci assigned law officers to guard the empty plant to ensure that it
would not “freeze up” over the winter while he searched for potential
investors. By the following summer, the plant was back in business and
320 workers were back on the payroll thanks to Keith Van Scotter and
John Wissman.
These two businessmen wanted to create a cost-effective and
competitive producer of specialty paper and tissue products. A number
of initiatives were undertaken, including the installation of the first
new paper machine in Maine in nearly 20 years. Additionally, LP&T
is installing a new steam turbine generator to become more electrically
self sufficient. They also recognized the need to improve paper quality
starting with the very important key measure of formation.
It takes more than capital to improve a business. Hence LP&T used
a company called QualPro to help identify changes that could be made
to improve the company’s operations and maximize its profitability.
Through QualPro’s MVT® (multivariable testing) process, LP&T has
been able to improve paper quality, cut productions costs, and reduce
chemical consumption.
25% of the improvement ideas identified by companies actually improve
results; 22% have a negative impact.
The remaining 53% make no difference
and would be a waste of time
and money if implemented.
MVT®is an improvement process that uses anadvanced mathematical
method to allow simultaneous testing of up to 30 variables aimed at
dramatically improving efficiency and profits. It reveals to managers
precisely which factors have a positive impact on any important business
objective, which have a negative impact, and which have no impact at
all.
Through more than 14,000 MVT® tests, QualPro has found that only
25% of the improvement ideas identified by companies actually improve
Keith Van Scotter who helped buy the Maine mill out of bankruptcy
results. Surprisingly, 22% of improvement ideas have a negative impact.
The remaining 53% make no difference and would be a waste of time
and money if implemented. By testing simple, no-cost ideas suggested by
employees throughout the company, MVT® is able to create workforce
enthusiasm for implementing the winning ideas. Companies that use
MVT® to focus its efforts only on helpful actions can quickly achieve
performance breakthroughs while building morale.
At LP&T, MVT® has identified ways to make major improvements,
such as improving quality, reducing waste, and increasing production.
LP&T continues to use MVT® to test dozens of solutions and identify
exactly which actions can be implemented to improve its business as the
company continues along its aggressive growth path.
According to Keith Van Scotter, “Our goal is to improve faster than
our competition, MVT® is going to be a way of life for us, and it’s going
to be one of our key tools to drive improvement and achieve that goal.”
Already, Lincoln Paper & Tissue has improved its competitive position
as it relates to both paper quality and profitability.
Art Hammer is with QualPro Inc. in the USA.