Plywood Case Study

The dream of every forest products company is to have an operation that runs like a well-oiled machine. It helps to have good managers, but unless people on the floor are truly thinking, the machine’s parts are not “well-oiled.”This Pacific Northwest plywood plant had run for years with a “command and control” structure. This style had worked in the past but by the late 1990s it was clear that their competitive position was eroding. They were trying desperately to change, but having developed a culture of “following orders,” they realized they would need to make the transition to an organization where every employee is engaged and thinking.

Perforex was called upon to help find solutions. Working together with the mill management, three primary goals for the ExGAP Project™ were outlined:

• Management system redesign and implementation
• Development of the skills and culture at all levels to use the new management methods
• Measurable and sustainable improvement in areas of production, value, recovery, cost, and profitability

Then Perforex got right to work. They started with their proven method of involving employees from all areas in the process.

“It was very interesting,” says the plant manger. “Employees who had learned to simply do what they were told, were now being asked to help redesign how the operation was managed. There was a lot of skepticism at first, but little by little they started to become engaged and contribute very positively.

One area at a time the Perforex team worked with hourly employees and managers to completely overhaul the way business was done. Of course, as is often the case, great ideas on paper are not so easy to implement

“When we started the implementation in the dryers, it became clear that people were not ready to take the risks that were required in the new system,” says the Perforex Project Manager. “In the past, hourly workers fed the dryers and graded veneer, and the supervisors set dryer control settings according to strict guidelines from above. Now they had targets for production, moisture, etc and were being asked to work as a team to manage for that outcome and take actions on their own initiative to solve problems. Lots of people were unwilling to take on that responsibility because they had suffered in the past when mistakes were made.”

That is where the Perforex approach really paid off. Day after day, graveyard shift, dayshift, and weekends, Perforex staff worked side by side with the plant supervisors and hourly workers to make the new system a reality.

After several months, the plant was a different place, as the following results make clear:

“It wasn’t easy,” says the plant manager. “But change never is. What helped make the difference here was the involvement and support of Perforex. People around here have seen lots of initiatives come and go, but the long term presence and willingness to work in the trenches with our people showed everyone that this was different. “