At a Glance
- Asian plywood manufacturer’s goal was to improve Productivity and Utilisation, streamline processes by improving availability, reducing stoppages, and facilitating better planning.
- Key challenges included significant gaps in their existing management control system, inadequate tracking of Key Performance Indicators (KPIs) and targets, and losses resulting from poor supervisory control.
- Renoir introduced robust Production, Planning & Control (PPC) processes and management systems to achieve sustainable operational excellence. This helped the client improve their OEE (Overall Equipment Effectiveness) by 24%.
Key results
- Achieved a 24% improvement in Overlay OEE (Overall Equipment Effectiveness) from the baseline number.
- Reached a maximum improvement of 33% in OEE during one project month.
- Achieved a 22% improvement in productivity from the baseline.
- Reached a maximum improvement of 30% in productivity during one project month.
- Production, Planning & Control (PPC) systems were installed for tracking orders and improving On-Time In-Full (OTIF) performance.
- Key Performance Indicators (KPIs) were refined for Production and Maintenance.
- Maintenance systems and a planning tool were successfully installed.
Background
The wood manufacturing industry in Asia is significant and growing rapidly, driven by urbanisation, infrastructure development, and a move toward eco-friendly materials. Asia Pacific leads the global market, accounting for about 38.2% of shares in 2025, driven by China, India, and Indonesia. The industry benefits from abundant timber resources and investments in modern technologies.
The client is a leading name in Asia’s plywood and wood panel industry, and they are established in 1957 including plywood, blockboards, doors, and decorative veneers. The company serves various markets, including the residential, commercial, and industrial sectors. Renoir was engaged to improve Productivity and Utilisation as efficient utilisation means maximising the use of harvested wood, reducing waste, and extending the lifespan of wood products through reuse and recycling. From a profitability standpoint, better utilisation reduces raw material waste and manufacturing costs.
Analysis
The project was primarily undertaken because the client aimed to improve Productivity and Utilisation and streamline processes by focusing on improving availability, reducing stoppages, and facilitating better planning.
Renoir conducted a two-week in-depth analysis to identify, define, and quantify performance opportunities at one of the client’s plants.
This analysis highlighted several key operational and supervisory challenges that necessitated immediate action:
• Management Control Gaps: There were clear gaps identified in the existing management control system.
• Performance Tracking: Key performance indicators (KPIs) and targets required significant refinement to be effective.
• Planning and Utilisation: There was a need for better planning to optimise operational bottlenecks. The constraint in the process was not planned effectively, and the client needed to set up a work bank to constantly feed the constraints and avoid stoppages.
• Supervisory Issues: Gaps in supervisory controls were leading to high losses.
• Process Deficiencies: Reviews were not standardised across the plant, and Root Cause Analyses (RCAs) for stoppages and breakdowns were ineffective.
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Project Approach
This multiple-week phase involved thoroughly examining management control systems, business processes, performance levels, and supervisory and managerial issues.
To secure sustainability and internal ownership, Renoir established a structured approach:
- Taskforce Training: Five full-time Taskforce members from the client were selected and trained in the Renoir methodology.
- Management Teams: A Management Action Team (MAT), comprising the Plant Head and department Heads, was set up to implement the agreed systems on the floor. Simultaneously, a Project Management Team (PMT) was established to oversee and guide the overall effort.
- Collaborative Development: New systems and processes were discussed and refined within these forums to ensure buy-in from users from the beginning, leading to smoother implementation.
- Diagnostic Tools: The approach relied on thorough data analysis and observation studies to pinpoint specific issues, such as high losses in Hotpress due to lagging supervisory control
“The team was sharp with timely insights and effective models. They developed strong systems and a clear path forward. Efforts were constantly visible, and all members felt they had advanced several levels post the project. I will recommend to Renoir to everyone.”
– President-Manufacturing
Implementation
Several key systems were implemented in partnership with the client to execute the solutions:
PPC and Planning Systems:
Production, Planning & Control (PPC) processes were established. Planning systems were installed to improve the utilisation of resources, and a planning tool was installed to improve plan adherence.
Review Mechanisms: A robust review mechanism was installed, including daily and weekly review meetings and short interval control. This enhanced process control and improved coordination between departments by developing the practice of reviewing production numbers.
Performance Management:
Target setting was conducted based on past data for each operational area. Short interval control boards, standard operating procedures, and data capturing mechanisms were installed to track and manage plan versus actual numbers. KPIs were refined for Production and Maintenance.
Maintenance and Problem Solving:
Maintenance systems were installed, and Root Cause Analyses (RCAs) were initiated according to agreed criteria to reduce stoppages caused by repetitive issues.
Lean Methodologies:
The 5S lean manufacturing Process and Audits were implemented to maintain good working conditions at the plant.
Training and Coaching:
Implementation was supported by hands-on coaching and classroom training to ensure systems owners adopted the new ways of working effectively
Results
Key Result | Improvement | Details |
Overlay OEE | 24% improvement | Achieved 24% improvement from the baseline number, reaching a maximum improvement of 33% in OEE during the project tenure. |
Productivity | 22% Improvement | Achieved 22% improvement from the baseline, with a maximum improvement of 30% in productivity during the project tenure. |
Beyond these quantifiable gains, Renoir’s involvement ensured the installation of maintenance systems and a planning tool to maintain future result.
*We have intentionally omitted client-specific details to maintain strict confidentiality.
Does your organisation faces constraints in utilisation, supervisory control gaps, or requires enhancement of its existing management control systems?
