Södra Timber is putting people power to the test with an innovative programme that puts its staff at the heart of the business.

And, judging by its success so far, the programme at the company’s Swedish sawmills has already delivered positive results.

The key values of the initiative, called TimberPlus, are productivity, skills and sales value. The strategy is about using the right people and the right equipment to achieve better results at the same costs – or getting the same result at a lower cost. By reducing the cost per manufactured cubic metre and using raw materials effectively, the company aims to increase productivity and profits.

Since the introduction of TimberPlus in 2005, the company has seen a 4.6% productivity improvement – and this is expected to rise over the next four to five years.

There are programme leaders at all of Södra Timber’s sawmills, each responsible for leading the productivity work locally. Problem areas are identified, and data about them is collected. Groups of employees then meet to develop solutions. All ideas are looked at and some are implemented – and the whole process is evaluated again once the ideas have been in place for a while. The ideas can cover a range of activity – for instance they can be of a technical nature aimed at reducing maintenance stoppages – or they may concern working methods.

This feeling of participation, said the company, makes each employee realise the role they play and the importance they have to the company – which is vital to reach the productivity goal.

“The more of our people that run in the same direction, the more Södra Timber will become successful,” said CEO Peter Nilsson.

Specific objectives of the scheme include implementing at least four improvement proposals per week and increasing productivity by 3% annually.

Södra Timber is now focusing particularly on the work environment. Many of the activities in this area are educational and are aimed mainly at sawmill managers and union and safety representatives.

However, an educational initiative due to be implemented in spring next year, will involve all employees. It concerns improvements in the work environment, and is designed to help employees better understand the importance of their work environment and the responsibility of each person.

Strong building market

Meanwhile, a strong building market in Sweden, Europe and the US has kept demand for Södra’s sawn timber products buoyant. The company produces sawn timber at nine sawmills and performs subcontracting at two mills.

In the main, production consists of construction timber, the product segment with the highest market growth.

In 2005/06, net sales totalled SKr 4.28bn and operating income was SKr285m, compared with SKr2.78bn and SKr156m respectively in 2005. The improved result was due to higher prices, lower saw log costs, increased production and raised productivity.

Hurricane response

In the aftermath of Hurricane Gudrun in January 2005, Södra took a number of measures to deal with the storm-felled saw logs. For instance, multiple shifts were introduced at some mills, the holiday shutdown was shortened and drying capacity was expanded.

Around 30 storage terminals were also created, and it is anticipated that it will take three years to use up the stocks held in them.

In autumn last year a new bandsaw line was started at Unnefors sawmill with a capacity of 110,000m3 a year.

At Värö, a new planing mill was built to carry out planing that was previously subcontracted, with an annual capacity equivalent to the sawmill’s entire production.

And finally, the planing mill from the closed sawmill in Lenhovda was moved to Orrefors – which means that all of the company’s nine sawmills are now equipped with planing facilities.

Södra said its goal is to be a leading supplier of planed construction timber. Effectiveness is to be raised through intensified productivity processes and the ongoing specialisation of the various sawmills in terms of raw materials and range.

Specialisation has already led to seven of the nine mills sawing only a single type of wood and to certain mills limiting the product range in terms of dimensions and lengths of the sawn timber.