CONTINUOUS IMPROVEMENT: A WORKING EXAMPLE APPLIED TO FUEL MANAGEMENT AT HARWOOD MILL

IN 2010, the New South Wales Sugar Milling Co-operative undertook to implement a continuous improvement (CI) program with Harwood mill and refinery site selected to pilot the program. Five projects were initially selected for the pilot program. This paper describes the CI process adopted and follows the progress of biomass fuel management project. Harwood mill and refinery requires approximately 50 000 tonnes of biomass fuel during the non-crush period to operate the refinery. Coal use is kept to a minimum. This biomass is sourced as a by-product from registered sawmills, delivered by various carriers, to two destination points. The purpose of the project was to accurately and effectively manage the biomass fuel process via a formal and comprehensive system that provides visibility to all stakeholders. The system tracks fuel stocks, quantities received and consumed, and the quality of that fuel, via procedures, reports and KPIs to deliver cost savings. The continuous improvement process identified many systemic weaknesses in the original fuel management by methodically gathering information, consulting stakeholders and process mapping the activities undertaken. The process steps were classified into value adding and non-value adding. Areas of complexity were analysed and improvement opportunities were identified, prioritised and implemented. The key outcome of the project was to implement a single supplier approach. This has successfully provided full accountability, eliminated poor stock reconciliation and improved the quality of fuel supplied to an extent where out-of-specification fuel is negligible. Sampling and subsequent analysis of fuel is reliable and a comprehensive set of procedures and instructions have been developed to provide training and underpin the sustainability of the system.