Brazilian pulp and paper industry leader Klabin SA had isolated manufacturing monitoring and control applications throughout its 17 plants. To increase asset utilization, reduce waste, and improve quality, the firm implemented the SAP Manufacturing Integration and Intelligence application.

1. KLABIN
MAXIMIZING ASSET UTILIZATION AND
QUALITY WITH INTELLIGENCE
QUICK FACTS
Key Challenges Why SAP Was Selected
Industry
• Maximize asset utilization by optimizing • Ease of integration with core SAP® soft-
Mill products – pulp and paper
setups and maintenance ware and manufacturing execution
Revenue • Improve quality and minimize scrap systems
US$1.3 billion • Standardize processes across plants to • Web-based collaboration with external
scale up best practices parties
Employees • Provide visibility into disparate data • Agility to build graphs and dashboards
7,384 sources, easy information access, and • Capacity to integrate with equipment
Headquarters analytics to support processes robotics
São Paulo, Brazil • Replace labor-intensive analytics • Reliability of SAP support
• Establish reliable, nonstop IT environment
Web Site
www.klabin.com.br
Implementation Best Practices Low Total Cost of Ownership
SAP® Solutions and Services • Implemented at 1 plant initially, followed by • Completed 1st plant implementation in
SAP® Manufacturing Integration and gradual rollouts to other plants 5 months, on schedule and within budget
Intelligence application • Assigned a team of 40, including 8 from • Automated reporting, saving labor
integrator • Avoided costly development and mainte-
Implementation Partner • Rewrote all processes for the SAP Manu- nance of interfaces
Neoris facturing Integration and Intelligence • Reduced number of systems, applications,
application and IT resources needed to maintain them
Brazilian pulp and paper industry
leader Klabin SA had isolated manu- Financial and Strategic Benefits Operational Benefits
facturing monitoring and control ap- • Saved millions of dollars annually Key Performance Indicator Impact
• Reduced scrap by 700 tons, worth
plications throughout its 17 plants. Manufacturing throughput +1%
US$500,000, per year (1st plant only)
• Maximized asset utilization through reduction of scrap*
To increase asset utilization, reduce
• Implemented an advanced static process Overall equipment +60% to 70%
waste, and improve quality, the firm control application fed with accurate, effectiveness**
implemented the SAP® Manufactur- online information
• Improved and streamlined connectivity Plant personnel productivity +8%
ing Integration and Intelligence appli- with 1 application to integrate many data Frequency of setups* Greatly reduced
cation. The integration of this soft- sources
• Streamlined communication with external
ware with manufacturing execution parties via the Web
systems and Klabin’s core SAP
business applications is allowing the
firm to save millions of dollars
annually.
*For the Telemaco Borba plant
**For some equipment
SAP Business Transformation Study
Mill Products – Pulp and Paper

2. “Before we had two-hour meetings to find the root cause of our issues, but now www.sap.com /contactsap
we have half-hour meetings to decide the course of action to resolve them.”
Lorival Verillo, IT Manager, Klabin SA
Klabin SA is Brazil’s largest paper pro- the SAP Manufacturing Integration and intelligent control over our manufactur-
ducer, exporter, and recycler. It is also Intelligence (SAP MII) application. SAP ing with SAP MII exceeded our expecta-
the country’s market leader in packag- MII was best at satisfying the firm’s crite- tions and put us at a new level to com-
ing paper and board, corrugated boxes, ria, especially tight integration with core pete in the global market,” says IT
and industrial sacks. Founded in 1899, SAP software and the manufacturing exe- manager Lorival Verillo.
Klabin has 17 industrial plants in Brazil cution systems layer.
and 1 in Argentina. Altogether Klabin’s savings reach into
Klabin began with the most complex of its the millions of dollars annually at just
Competitiveness Requires plants, Telemaco Borba in the state of the first plant, with much more to come.
Intelligent Manufacturing Planning Paraná. Systematically a team from Klabin Because of its success, the Telemaco
and its partner Neoris integrated SAP MII Borba plant was honored with a distinc-
Pulp and paper is an asset-intensive, with the manufacturing controllers in the tion in 2008 – the Total Productive
commodity-pricing industry. Klabin runs plant and rewrote existing processes. The Maintenance (TPM) Award from the
its plants 24x7, but that alone is not team finished in five months, on schedule Japan Institute of Plant Maintenance.
enough to stay competitive. The compa- and within budget, before moving on to Klabin is the first Brazilian pulp and
ny must maximize its use of manufactur- other Klabin plants. paper company to win the first degree
ing assets while minimizing scrap. of this award, which recognizes ongoing
Machinery setups must be as infrequent Klabin Wins Coveted TPM Award improvements and standards of indus-
as possible, and maintenance must be trial excellence.
preventative. This calls for careful plan- Klabin’s IT costs have dropped now that
ning, but until recently the software there are far fewer one-off systems to
Klabin used was not delivering the support and interfaces to develop and
needed results. The plants’ manufactur- maintain. With a static process control
ing control applications were not inte- application, plant managers can monitor
grated with one another or with Klabin’s bottlenecks, setups, and quality indicators
core SAP® business software. The firm more quickly. As a result, machine setups
had limited analytics capabilities and are much less frequent, and equipment
relied instead on spreadsheets and local availability has improved as much as 70%.
databases. Interfacing Klabin’s plant- The plant reduced scrap by 700 tons last
floor applications with machinery con- year for a savings of US$500,000 and an
trollers was labor intensive. overall manufacturing throughput improve-
ment of 1%. Reporting is automated,
SAP MII Delivers Integrated increasing productivity. Quality manage-
Analytics ment and maintenance costs are down,
and overall productivity and adherence to Implementation Partner
To maximize quality and cost- quality standards are up. Neoris specializes in near-shore out-
effectiveness in its plants and enable sourcing, IT consulting, emerging tech-
growth, Klabin determined to replace Senior management also sees the bene- nologies, systems integration, applica-
much of its analytics software with a fits of improved information availability, tion development and deployment, and
single, strong manufacturing monitoring because the causes of problems are support solutions. Neoris is the second-
and control application. Klabin examined immediately apparent and resolving them largest consulting and integration com-
several candidates before deciding on is much easier. “The benefits of having pany in Latin America.
50 094 816 (09/04)
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