Project Overview Case Study: Wentworth Furniture In January 2004 EcoRecycle Victoria commissioned the Australian Sustainable Industry Research Centre Ltd (ASIRC) to undertake materials efficiency supply chain studies in the Furniture Manufacturing Industry of Victoria. This case study describes the project undertaken in partnership with Wentworth Furniture one of the leading furniture manufacturing companies in Australia. The objectives of the project were to quantify the waste within the timber supply chain from the logs entering the mill to the furniture delivered to the retailer. The emphasis was on the timber supply within Victoria, but other waste going to landfill was included. The Lead Organisation Wentworth Furniture is in the top 10 Furniture Manufacturers within Australia. Wentworth is a participant in the (FIAA) Furnishing Industry Association of Australia and uses their resources to improve quality and efficiency of its processes and products. Wentworth has 78 employees who produce furniture with a wholesale value of $9.5 million. The furniture range consists of bedroom suites and cabinets in Messmate and Ash timbers. The furniture is marketed on craftsmanship and quality and that value is consistent throughout their operations. Due to uncertainty of government policy on the supply of saw logs to the timber industry Wentworth have a diversified the range of products to decrease their dependence on timber. Wentworth is also keen to develop stronger supply chain partnerships and transfer machining operations upstream. Understanding the Issues EcoRecycle Victoria (ERV), in partnership with Wentworth and ASIRC, initiated a supply chain study to quantify the solid waste generated in the supply chain from the mill to the furniture company. The study within Wentworth covered all the timber types but the supply chain concentrated on Messmate as it was the predominant species used. Wentworth has a policy of maintaining a major and minor supplier for each timber type. Austimber is the major supplier and Terra timber is the minor supplier
The key issues relevant to the study: The waste within Wentworth manufacturing has been measured on the docking process but not across the total process. Waste management costs (approx. $30,000 per annum) are large enough to justify internal effort. Wentworth have minimised waste by utilising some short lengths and trims as parts for other products. This not only adds additional steps into the process, but more importantly detracts from the incentive to eliminate the waste due to more efficient material usage and process design. Improved timber efficiency is a key driver that would justify effort within Wentworth. Waste volumes are large and recycling is also a viable alternative to minimise waste management costs. The major timber mills predominantly manufacture timber for building products and the furniture volume is small and has little leverage within the mills in determining timber profiles and optimising milling processes. Desired Project Outcomes In planning the study the following outcomes were anticipated: Quantification of the timber waste would allow further improvement in waste management costs and recycling. Supply chain process studies would identify areas of process duplication and opportunities for improvement in partnership with the supplier. Environmental gains will be achieved by recycling the unavoidable waste (example shavings) resulting from the product design and the process. Improving the efficiency of processes such as docking will increase the proportion of timber milled that is converted into furniture thereby reducing the demand for timber and the associated waste in the supply chain. The Project Methodology Given these expectations, the following project methodology was developed based on six sigma: Define: Eco Recycle Victoria was the paying customer and their requirements were paramount. The Furnishing Industry Association of Victoria endorsed the project and introduced two leading furniture companies who specialised in hardwood furniture. Their needs were identified and the project scoped to ensure there was a business return to these lead companies. Measure: The furniture manufacturing process was documented by walking the flow as a process audit report and functional flow diagram with all inputs and outputs identified. The anecdotal data was verified by production records and purchasing
invoices. This facilitated an understanding of the key processes that converted the timber into furniture and importantly the quality requirements of timber used. The key supplier processes were similarly documented. Analyse: Data was consolidated and analysed to identify the major timber use by species, the major timber profiles used and the weighted average timber sizes. The waste was similarly analysed to identify the relative volumes of each type of waste and the losses in each major process. This information was displayed as a material balance for the furniture company and a waste map for the supply chain. The yield of each major process was calculated to estimate the proportion of timber that was converted to furniture. Additional anecdotal data was also supplied as a supply chain summary map to show the information flow, the material flow, the value and the waste. Improve: The process flow charts were examined to identify process duplication across the total supply chain so that a supply chain team could work together to eliminate the duplication and the waste inherent in the step. Large waste volumes also became opportunities for recycling. The team documented the timber specification and compared to the process capability. If these were matched then a trial was arranged and the trial material use to make furniture. The timber savings were calculated and if attractive, scale up into production planned Control: This step locks in the change by documenting the specification, supplier agreements and verifying safety impact. Operator training or briefing occurs and the change is implemented smoothly. The team continues to meet regularly to review production performance and to address further opportunities. Project Timing The project was undertaken over 18 Months: Partner selection and commitment: 2 Month Information gathering and measurement: 8 Months Map supply chain and identify opportunities: 1 Month Establish supply chain improvement : 1 Months Select capable timber moulding contractor and pilot changes: 6 Month Analyse and report results: 1 Month
The Project Waste from the manufacturing processes across the company was mapped and quantified as: Waste Material Quantity per Year Disposal Timber Shavings 211 tonne Recycle Timber shorts 135 tonnes Landfill Timber dust 104 tonnes Landfill Veneer Panel trims 36 tonnes Landfill Other 9 tonnes 60% Recycle, 40% Landfill The timber shorts and dust quantities are sufficiently large to economically recycle. There is an existing product stream for the shorts but the dust is too fine for use as poultry litter. The supply chain flow maps identified two process duplication steps: 1. Docking 2. Moulding In the past, Wentworth invested in a sophisticated docking saw which enabled them to reduce docking waste from 18% to 10%. They batch jobs so that there is a wide range of docked lengths and allow the docking saw to optimise the cutting of each individual board. Further improvement is unlikely unless the variable length timber packs are planned so that there is an efficient cut plan for each length. The planning is further confounded by a large number of timber profiles used. A supply chain partnership addressing this opportunity requires a large internal effort to rationalise timber profiles and could not be completed within the project timeframe. The current timber profiles should also be reviewed to select one that is consistent with large volume runs in timber milling so that timber ordered by Wentworth Furniture is compatible with building industry sizes and may be supplied from standard production mill runs.
Improvement Project: Supplier Edge Grooved Timber Terra Timber staff visited Wentworth Furniture and after touring the manufacturing process proposed that Terra Timber could edge groove timber used to make panels which are then converted to bed heads and cabinet tops. The panel production uses about 50% of the timber purchased. Terra Timber has a more sophisticated moulder and believe they could edge groove to finer tolerances than that achieved at Wentworth Furniture. This has two advantages it eliminates a step in Wentworth s process giving a productivity gain and reduces timber waste. edge grooved timber Terra Timber ordered timber from the mills with dimensions that after process losses in seasoning and moulding would yield profiles to the exact dimensions that Wentworth Furniture achieved off their moulder. This required a three month lead time in supply to accommodate the long process time involved in seasoning timber at Terra Timber. The trials of the Terra timber packs at Wentworth Furniture demonstrated that the edge grooving was satisfactory, but other concerns have delayed scaling up this option. The current process is: Timber Packs Glue Sand Belts Moulder CNC Router Dress Shape Thickness Optimizer Saw Taylor Clamp Cutter Block Sander Rip Saw Sander 1mm/surface Dock Make Thickness Cut To Variable Sand Timber Size Groove Contour Edges 10% shorts 3mm/join 1 pass / side Edges 1 pass/side 2.5mm/edge 30mm/length Variable Offcuts used for face boards 20mm width Parts Made 20mm length Cabinet Tops Cabinet Sides Bed Heads
The proposed process is Grooved Glue Sand Belts Timber Wentworth CNC Router Shape Optimizer Saw Taylor Clamp Cutter Block Sander Rip Saw Sander Dock Make Thickness Cut To Variable Sand Timber Size Contour 10% shorts 3mm/join 1 pass / side Edges 1 pass/side 30mm/length Variable Offcuts used for face boards 20mm width Parts Made 20mm length Cabinet Tops Cabinet Sides Bed Heads Improvement Project: Recycling of Timber Waste The purchasing manager renegotiated the waste management contract with JJ Richards and the 135 tonne of solid timber waste is now collected in a skip >20 m 3. The skip is transported to Benalla and is used for input to the manufacture of particle board. This change is being implemented and will divert 135 tonne from landfill, corresponding to a recycling increase to approximately 77%, and reduce waste management cost by approximately $10,000. Project Outcomes The project demonstrated that high quality edge moulding could be contracted to suppliers and transported from regional Victoria to Melbourne. Wentworth shared their experience with Davis at a workshop held as part of the project and convinced them to undertake their own project. Wentworth Furniture and Terra Timber demonstrated that by working in partnership they could improve the utilisation of the timber used to make panels by 17%. The trial supports the estimation of increased utilisation of 99 tonnes of messmate can be achieved over a year s production. Commercial uptake of the changed supply chain
arrangements would then result in a reduction of 282 tonnes of logs required for milling. Wentworth and JJ Richards are now recycling an additional 135 tonnes of timber waste, thereby increasing Wentworth Furniture recycling efforts from 44% to 70%. The project established that by using a data based improvement process and utilising the experience within the industry, timber utilisation can be improved by eliminating waste to provide more sustainable manufacturing. Future Challenges Wentworth must continue working with suppliers to establish the capability of its supply chain partners and optimise the total supply chain capability to produce quality furniture at the lowest cost. This generally requires flexibility of product design and manufacturing processes within the chain to fully utilise equipment capability and expensive timber. The challenge remains to engage an industry that is comprised of many small companies in this improvement process so that timber being disposed to landfill is dramatically reduced. Contact Details EcoRecycle Victoria: Mr Simon Clay, Mrs Andrea Klindworth ASIRC: Dr Kirsten Schliephake Wentworth Furniture Pty Ltd: Mr Rex Carr, Mr Russell Hirth Terra Timber: Mr Paul Heaton-Harris Acknowledgements EcoRecycle Victoria, ASIRC, The operators and management of Wentworth Furniture and Terra Timber