{"id":136,"date":"2019-05-21T23:29:28","date_gmt":"2019-05-21T23:29:28","guid":{"rendered":"https:\/\/www.optware.com\/?page_id=136"},"modified":"2019-05-29T05:25:59","modified_gmt":"2019-05-29T05:25:59","slug":"lumber-remanufacturing","status":"publish","type":"page","link":"https:\/\/www.optware.com\/industry-applications\/lumber-remanufacturing\/","title":{"rendered":"Lumber Remanufacturing"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"136\" class=\"elementor elementor-136\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1e36ccce elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1e36ccce\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-15bdb82\" data-id=\"15bdb82\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b303fcb elementor-widget elementor-widget-text-editor\" data-id=\"1b303fcb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>The Problem<\/h3><p>A California-based manufacturing operation hired Optware Solutions to help them optimize their business and improve profitability. \u00a0The cut-stock business involves purchasing lumber veneers and sawing them into small blocks of specific sizes and grades for particular end uses. \u00a0There are literally thousands of potential conversion options in the procurement and processing of veneers. \u00a0In this case the client desired to include a representation of company-owned sawmills to allow company-wide optimization of resources. \u00a0The basic questions to answer were: \u00a0\u201cWhat logs should I buy?\u201d, \u201cWhat lumber should I saw\u201d, \u201cWhat lumber should I buy from outside sources?\u201d, \u201dHow should the lumber be remanufactured?\u201d, \u201cWhat products are most profitable?\u201d.<\/p><h3>The Solution<\/h3><p>The application of optimization technology included the following model contents:<\/p><ul><li>Lumber manufacturing from logs to lumber including all revenues and costs<\/li><li>Cut-stock operations from lumber through finished product (blocks) including all revenues and costs<\/li><li>Multiple raw material suppliers and costs<\/li><li>Multiple breakdown (sawing) options considered<\/li><li>Multiple processing machines and lines<\/li><li>Numerous potential shift configuration options: \u00a0A given shift configuration will typically have different hours available for the various machine centers, as well as different semi-fixed costs. \u00a0\u2018Departmental\u2019 fixed costs also vary by shift configuration. \u00a0All the equipment functionally linked to the same department must run the same shift configuration option.<\/li><li>The capacity of some machines can be dynamically scaled, even within a given shift configuration. \u00a0Integer bounds can be placed on the minimum and maximum number of machines that can be run. \u00a0The model must choose within the range. \u00a0Integer controls allow multiple feed-speeds to be made available, with the restriction that only one feed-speed can be chosen for a given machine. \u00a0Incremental labor costs are assigned based on feed-speeds.<\/li><li>An extensive array of production and sales limits allow control over the product mix at\u00a0any desired level of detail or grouping.<\/li><\/ul><h3>The Results<\/h3><p>The optimization model has become an integral part of this client\u2019s business culture. \u00a0Use of the system has the strong support of top management. The model is used in tandem with the company\u2019s annual business planning\/budgeting to keep the plan \u201calive and working\u201d during the year as significant changes in the business environment take place. \u00a0Much of the information developed for the budget, including hourly sawmill costs, operating hours, product volumes by major category, log volumes and prices, and product outsourcing volumes and prices are used as initial inputs to the model and for comparisons to model runs as the year unfolds.\u00a0<\/p><p>The client has experienced a number of benefits from the use of optimization including: \u00a0improved fiber utilization, improved machine utilization, improved product mix, reduced inventories, reduced manufacturing costs, improved coordination between business units and personnel, and significantly improved profits.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-3c09f4cb\" data-id=\"3c09f4cb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2c978a06 elementor-widget elementor-widget-image\" data-id=\"2c978a06\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"400\" height=\"306\" src=\"https:\/\/www.optware.com\/wp-content\/uploads\/2019\/05\/lumber-reman.jpg\" class=\"attachment-large size-large wp-image-358\" alt=\"\" srcset=\"https:\/\/www.optware.com\/wp-content\/uploads\/2019\/05\/lumber-reman.jpg 400w, https:\/\/www.optware.com\/wp-content\/uploads\/2019\/05\/lumber-reman-300x230.jpg 300w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2fea424a elementor-position-left elementor-view-default elementor-mobile-position-top elementor-vertical-align-top elementor-widget elementor-widget-icon-box\" data-id=\"2fea424a\" data-element_type=\"widget\" data-widget_type=\"icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-icon-box-wrapper\">\n\t\t\t\t\t\t<div class=\"elementor-icon-box-icon\">\n\t\t\t\t<a href=\"mailto:info@optware.com\" target=\"_blank\" class=\"elementor-icon elementor-animation-\" tabindex=\"-1\">\n\t\t\t\t<i class=\"fa fa-phone-square\" aria-hidden=\"true\"><\/i>\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"elementor-icon-box-content\">\n\t\t\t\t<h3 class=\"elementor-icon-box-title\">\n\t\t\t\t\t<a href=\"mailto:info@optware.com\" target=\"_blank\" >\n\t\t\t\t\t\tContact Optware today to schedule a consultation\t\t\t\t\t<\/a>\n\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"elementor-icon-box-description\">\n\t\t\t\t\t\t503-645-2390 |\u00a0info@optware.com\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e82e8d5 elementor-testimonial--layout-image_left elementor-testimonial--skin-default elementor-testimonial--align-center elementor-arrows-yes elementor-pagination-type-bullets elementor-widget elementor-widget-testimonial-carousel\" data-id=\"5e82e8d5\" data-element_type=\"widget\" data-settings=\"{&quot;slides_per_view&quot;:&quot;1&quot;,&quot;show_arrows&quot;:&quot;yes&quot;,&quot;pagination&quot;:&quot;bullets&quot;,&quot;speed&quot;:500,&quot;autoplay&quot;:&quot;yes&quot;,&quot;autoplay_speed&quot;:5000,&quot;loop&quot;:&quot;yes&quot;,&quot;pause_on_hover&quot;:&quot;yes&quot;,&quot;pause_on_interaction&quot;:&quot;yes&quot;,&quot;space_between&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:10,&quot;sizes&quot;:[]},&quot;space_between_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:10,&quot;sizes&quot;:[]},&quot;space_between_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:10,&quot;sizes&quot;:[]}}\" data-widget_type=\"testimonial-carousel.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-swiper\">\n\t\t\t<div class=\"elementor-main-swiper swiper-container\">\n\t\t\t\t<div class=\"swiper-wrapper\">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"swiper-slide\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial\">\n\t\t\t\t\t\t\t<div class=\"elementor-testimonial__content\">\n\t\t\t\t\t<div class=\"elementor-testimonial__text\">\n\t\t\t\t\t\t\u201cWe documented wood cost savings of just under $1,000,000 in the first year of using the software.\u201d\t\t\t\t\t<\/div>\n\t\t\t\t\t<cite class=\"elementor-testimonial__cite\"><span class=\"elementor-testimonial__name\">Richard Dutchak<\/span><span class=\"elementor-testimonial__title\">Engineering Manager, Loewen<\/span><\/cite>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"elementor-testimonial__footer\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"swiper-slide\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial\">\n\t\t\t\t\t\t\t<div class=\"elementor-testimonial__content\">\n\t\t\t\t\t<div class=\"elementor-testimonial__text\">\n\t\t\t\t\t\t\u201cWe saved 1.5-2% of total fiber costs in transportation savings alone using Optware.\u201d\t\t\t\t\t<\/div>\n\t\t\t\t\t<cite class=\"elementor-testimonial__cite\"><span class=\"elementor-testimonial__name\">Michael McCollum<\/span><span class=\"elementor-testimonial__title\">President Procurement, Georgia-Pacific Corporation<\/span><\/cite>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"elementor-testimonial__footer\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial__image\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/wordpress-253005-856793.cloudwaysapps.com\/wp-content\/plugins\/elementor\/assets\/images\/placeholder.png\" alt=\"Michael McCollum\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"swiper-slide\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial\">\n\t\t\t\t\t\t\t<div class=\"elementor-testimonial__content\">\n\t\t\t\t\t<div class=\"elementor-testimonial__text\">\n\t\t\t\t\t\t\u201cWe picked up well over 35% savings in our manufacturing costs in a one year period.\u201d\t\t\t\t\t<\/div>\n\t\t\t\t\t<cite class=\"elementor-testimonial__cite\"><span class=\"elementor-testimonial__name\">Steve Killgore<\/span><span class=\"elementor-testimonial__title\">Vice President Solid Wood, Roseburg Forest Products<\/span><\/cite>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"elementor-testimonial__footer\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial__image\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/wordpress-253005-856793.cloudwaysapps.com\/wp-content\/plugins\/elementor\/assets\/images\/placeholder.png\" alt=\"Steve Killgore\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"swiper-slide\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial\">\n\t\t\t\t\t\t\t<div class=\"elementor-testimonial__content\">\n\t\t\t\t\t<div class=\"elementor-testimonial__text\">\n\t\t\t\t\t\t\u201cOptimization allowed us to substantially improve our paper machine utilization across the Division\u201d\t\t\t\t\t<\/div>\n\t\t\t\t\t<cite class=\"elementor-testimonial__cite\"><span class=\"elementor-testimonial__name\">Rosie Steenson<\/span><span class=\"elementor-testimonial__title\">Manager, Containerboard Division, Weyerhaeuser Company<\/span><\/cite>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"elementor-testimonial__footer\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial__image\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/wordpress-253005-856793.cloudwaysapps.com\/wp-content\/plugins\/elementor\/assets\/images\/placeholder.png\" alt=\"Rosie Steenson\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"swiper-pagination\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"elementor-swiper-button elementor-swiper-button-prev\" role=\"button\" 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thousands of potential conversion options in the procurement and processing of veneers. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":25,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lumber Remanufacturing | Operations Management | Optware<\/title>\n<meta name=\"description\" content=\"A California-based manufacturing operation hired Optware Solutions to help them optimize their business and improve profitability.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.optware.com\/industry-applications\/lumber-remanufacturing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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