Dale Earnhardt

Quotables

“Second Place is First Loser”

“Sometimes you win, sometimes

you lose, sometimes you wreck”

While Dale Earnhardt could be called a

highly reliable NASCAR star our discussion

today is not about Dale Earnhardt!

Agenda

• Kudos and Credits

• Domtar

• Me

• The Domtar Reliability Challenge

• Playbook of Processes for Domtar

• 3-Liability

Kudos to Larry Bryant (Domtar Director, Reliability)

- Larry has been the Director of our Reliability program for past 6 years, travels 40+ weeks per

year, and helps Domtar manage $475 million + maintenance spend per year

- Larry has sponsored our relationship with UT RMC since 2011

- Collaborates with 13 manufacturing ops on 7 key reliability areas:

Precision Maintenance Planning and Scheduling

Lubrication Standards Pressure Vessels and Tanks

EC & CM Route Management E&I Standards

Materials Management

- Consider it an honor to have such a dedicated leader as part of my team

- Vision, Determination, Resilient, Character, Never says CAN’T

Credit & Recognition

Thanks to Domtar, who has given me the opportunity to learn and

lead every day of my 30+ year career, and surrounds me with

excellent leaders like Larry who make my job very rewarding.

OPERATIONS13 Pulp and Paper Manufacturing Facilities in the US

and Canada ($18B steel ARV in the ground):

- Primary equipment age from 20 to 60 years

- All facilities run 24X7X355 (avg. 10-day major)

- Convert over 40,000 tons of wood per day

- Sell 2 million tons of pulp and 3 million tons of

finished paper products per year

- Commodity Communication Paper markets have

declined 3-5% per year on average since 2000

EQUIPMENT• 6,500 tanks and vessels

• 30,000 instrument loops

• 1,000 electric transformers

• 20,000 electric motors (up to 2000hp)

• 44 boilers (chemical, bark, oil, gas, coal)

• 25 Turbine Generators (60+% energy efficient)

Who is Domtar - - - in Reliability Terms

PEOPLE10,000 employees, 1,600+ are Maintenance and

Reliability focused:

- Both Organized Labor and ‘Pay for Skill’

- English and French speaking

- Centralized and Decentralized shop structure

- 3 distinct different CMMS systems

What we do and how we do it

Domtar and UT Reliability & Maintainability Center

Strong Partnership between Industry

and Education!

Member Company since 2011

• Have utilized RMC in auditing Domtar’s Extended Outage Management Process

• Have used RMC for industry Reliability Benchmarking• Presently building a strong relationship with UT in recruiting

reliability interns• Successful in partnering for certification of our Reliability Leaders

with UT’s RMIC Certification upon completion of Domtar’s 10 Week Reliability Leadership Training program

Kingsport Mill

ME:

- Gear Head (grew up in a used auto parts

business) BSME, Clemson University, 1980

- 40 Year Career

- 10 as consultant to P&P,

- 30 in P&P Manufacturing

- 13 Years as General Manager

- 3 Years Port Wentworth Georgia

- 10 years Kingsport Tennessee

(PIMA Mill Manager of the Year in 2010)

- Became Corporate Overhead in 2014

• SAFETY • ENVIRONMENTAL

• CONTINUOUS IMPROVEMENT • RELIABILITY

• CENTRAL ENGINEERING OPTIMIZATION

Career has allowed me to progress thru design, construction,

maintenance, and management of paper operations

You don’t have to grow up in this business to love it!

40 YEARS HAS TAUGHT ME

• What don’t kill you makes you stronger (IF YOU DO RCA)

• Measure what you treasure

• People generally want to do the right thing

• Surround yourself with people who know more about their

business than you do

• Most mills don’t just do one thing well – if they are good at

safety, reliability, environmental they are usually a solid

performer

Three things a Reliability Manager will NEVER say:

- I was wrong

- I need help

- Pass me the Worcestershire sauce

If we don’t laugh we will cry!!

The Domtar Dilemma

Each Mill / Company brought

it’s own culture, challenges.

THE

WHY

• CULTURE – Our legacy operations (EB Eddy, Willamette, Weyerhaeuser, GP,

Domtar) merged financially but not culturally

• AUTONOMY - Our Mill Leader-centric, Autonomous approach was problematic

• INDUSTRY CHALLENGES - Systematic repurposing of facilities was nearing end

of usefulness as a way out

• IMPROVEMENT - The only way to fix or get better was with capital

• FALSE FINANCIAL VALIDATION – We made more money than most so we

assumed we were better

• RELIABILITY – No structure, no best practices, no collaboration, no vision

Concluded that we lacked a culture for Continuous Improvement

HISTORY

The Domtar Delimma

We weren’t on a burning platform but we

smelled smoke!!

THE

WHY

Climbing the Curve

Using Continuous Improvement Tools

ASPIRATION

HIGHLY

RELIABLE

ONE TEAM, ONE PLAYBOOK = ONE Domtar

Key Attributes of Approach

These are key culture drivers in

every successful venture

THE

HOW

3-Liability is a simple logical joint-word to

remind us that World Class Reliability Practices

involve 3 equally meaningful Priorities

What is

?

COMPANY LEADERSHIPUnderstand the journey’s challenges

• Know true value of reliable operations

• Support (but challenge) the investment required

• Mandate collaboration at all levels

RELIABILITY LEADERSHIP

• Speak a consistent reliability language

• Support common processes across mill and business

• Collaboration with Operations

RELIABILITY ENGINEERS

• Problem solvers

• Continuous Improvers

• Disciplined, persistent

SKILLED CRAFTSMEN / OPERATORS

• Committed to the journey

• Value Preventive Maintenance vs Fire-Fighting

• Continuous Improvement mindset

• Constant learners

People

Reliability performance is discussed / assessed in Daily Management Meetings (DMS) at all levels every day

Management Committee is updated with reliability risk register each quarter

All members of Domtar Senior Leadership have attended 1-day Reliability Leadership class

126 (target = 25%) of Reliability Leaders have completed 10-week Leadership Training (in 7 Waves)

30 leaders have received

UT’s RMIC certification

COLLABORATION

WorkStream Rollout Process identified 7 key focus areas for

measuring mill progress:

Precision Alignment Pressure Vessel / Tank Inspection

Lubrication Standards Hand-held Route Management

E&I Standards Planning and Scheduling

Materials Management

Utilization of Functional Teams to help set direction

TRAINING

• At all levels (leadership, crafts, operations)

• Multi-facet (written, CBT, video, hands-on, class) - RCAM

• Supportive of Predictive Preventive practices

RECORD-KEEPING• CMMS interfaced

• Planning and Scheduling

• Equipment history

• RCA

AUDITING / ASSESSING

• Measure what you treasure

• Create competitive landscape

• Learning opportunity for all

ProcessEach Major Mill outage has an Outage Readiness Assessment and Work Prioritization Session

671 Precision Attempts in 2019, 48% success rate

28,000 Essential Care Routes monitored 1,221,000 points

Tested 9,571 motors totaling 2.6 million HP, finding 734 issues

Completed Lubrication testing on 8,100 assets

Completed criticality analysis and 3rd party assessment of 6500 vessels and tanks

SUPPLIER FABRICATION STANDARDS

• Shop / clean room inspections

• Fabrication standards / tolerances / inspections

• Balance specs

• Bearing standards

RELIABILITY TOOLS

• Rebuild shop clean rooms

• Lubrication labs, clean rooms

• Hand-held Route Management tools

• CMMS

ADVANCED ANALYTICS (not Artificial Intelligence)

• Vibration analysis

• Motion Amplification

• Drone inspection technology

• Infrared Thermography

• Metallurgy testing equipment

Equipment / Assets

Each Mill supplied with Material Xray

testing tool to determine metallurgy of

critical components

Completed shop inspections of

major assets purchased at sites

globally (including India, China,

Finland, Europe)

Inspected local electric motor rebuild

shops for cleanliness and machining

tolerance and balance specs

Internal lubrication cleanliness testing

has led us to observe that as much as

50% of all lubrication does not meet

our quality specs when delivered

ADVANCED ANALYTICS

3-Liability BalanceAttributes critical for producing the

same consistent, repeatable results on

demand and without degradation or

failure.

Organizational capability - How people, process, and equipment are

brought together to achieve our business purpose

HOW WE DO THINGS - Framework -

Drives our culture, is key to our

success. Without Process there is no

order, no meaningful way to achieve

goals and get results.

A DIFFERENTIATOR – Most

companies use same suppliers and

equipment, have mature processes.

What makes success is how we

motivate our human capital to go

above and beyond

THE YARDSTICK – In Reliability

business, when Process and People

succeed equipment performance

shines

Sustaining BALANCED Reliability Culture

• Have the determination of Dale Earnhardt (Second Place is First Loser)

• Learn from mistakes to improve (understanding that sometimes you

crash)!

• Focus on a culture of Continuous Improvement

• Drive Common Processes, Disciplined Execution, Accountability, and

Collaboration

• Invest in the right technology to promote Advanced Analytics

• Continue a focused investment in PEOPLE, PROCESS AND

EQUIPMENT to insure a highly reliable fleet of operations

QUESTIONS ???