Email Jim at jim.thompson@ipulpmedia.com

This month we have talked about using housekeeping to find what is important in our mill or area of responsibility (week one). Then we talked about formalized housekeeping with GMP (week two). Last week we discussed abandoning equipment and structures in place (week three).

Let's wrap up, shall we?

Overall, what we have talked about is tools for better management, higher morale and better profitability. I don't know of anything else so low tech that can reach such high objectives so easily.

It doesn't take calculus, advanced differential equations, organic chemistry or AI to achieve these results. It does not take highly skilled employees (just make sure you have solid safety training for them).

Some mills have the driveway and the front lawn in excellent shape--in the US South, some of these look like you are driving onto a golf course.

What I am interested in when I am doing an evaluation for a bank, for instance, are the furthest water outfall (and intake), the roofs, the basement, and maintenance stores.

A half hour tour of these items will tell me if this is a well-managed, profitable mill.

We need highly educated paper scientists to keep us ahead of the competition; we need focus on the items we touched this month to make us a profitable as possible.

Changing cultures is hard. It takes support from the top executives on the site, and it takes time.

There have been a number of mills shut down here in North America this year. I am sure one or two of those could have avoided this had they, several years ago, done what I have outlined here this month.

Why? Because their profitability would have been such that their board of directors would never have put them on the chopping block.

So where is your mill? Honestly evaluate and ask yourself, are we on the bubble?

If you are, it is time to get working. It will take a year to bring it to the level I am talking about here.

If you are in newsprint, don't worry that newsprint is almost gone--be the last mill standing in newsprint.

If you are in p & w, don't worry about the diminishing grade--be the last mill standing in p & w.

You get the idea.

Two stories to wrap this up.

I haven't been there lately, so this story is dated, but it is still worthwhile.

I stayed in the Hampton Inn in Perry, Florida a number of years ago. One gentleman checked me in. I went to my room and, looking out the window, saw the same gentleman taking bags of trash to the dumpster. At 5 pm, they had a "happy hour" with drinks, chocolate covered strawberries, ice cream and fruit. Same gentleman served me there. I engaged him in conversation. He and his buddy owned the franchise, and they kept it immaculate, inside and out. Every year since they built the hotel, they had won an award from Hilton, master owners of the Hampton Inn chain, that is called the "Connie" named after Conrad Hilton. That meant, on all the points that Hilton grades Hampton Inns, they were the top hotel in the entire chain. In Perry, Florida! Their occupancy rate was over 99%. They won it every year, as I said before.

Second story. There was a papermill that I experienced up close and personal. It was threatened with being shut down. Headquarters said they would not give it any more capital; if they wanted to make improvements, they would have to come from their earnings. The mill had not been profitable in years. An enlightened and talented team came to run it. It took them a year, but they got the place consistently profitable and then consistently very profitable. They kept it this way for fourteen years. Then, corporate decided to sell it (sadly this is out of one's control). It was sold to a company in similar grades. The new owners said housekeeping was extravagant nonsense. In three years, it was down; in five years it was demolished.

Sometimes you can't control everything, but that doesn't mean you shouldn't do your best when you know what is best.

Be safe and we will talk next week.

For a deeper dive, click here.

Housekeeping as a Management Tool: A Study Guide

I. Comprehensive Review

This section outlines the key themes and concepts discussed in the "Housekeeping Wrap Up" article.

A. Core Purpose of Housekeeping

Fundamental Management Tool: Housekeeping is presented not merely as tidiness, but as a low-tech yet highly effective tool for achieving significant business objectives.

Objectives: It directly contributes to better management, higher employee morale, and increased profitability.

B. Formalized Housekeeping and Key Indicators

GMP (Good Manufacturing Practices): The article references GMP as a framework for formalized housekeeping, suggesting a structured approach to maintaining operational areas.

Strategic Areas for Evaluation: When assessing a mill's health, the author emphasizes specific "telltale" areas that reveal its true condition, beyond superficial appearances. These include:

Furthest water outfall and intake

Roofs

Basement

Maintenance stores

Implication: A well-maintained condition in these areas signifies a well-managed and profitable operation.

C. Abandoning Equipment and Structures

While not explicitly detailed in the "Wrap Up" excerpt, the mention of "abandoning equipment and structures in place" from week three suggests a previous discussion on the strategic implications and potential issues related to neglected assets within a facility. The current article implies that good housekeeping principles would prevent such neglect or address it systematically.

D. The "Low-Tech, High-Impact" Philosophy

Accessibility: Achieving the benefits of good housekeeping does not require complex scientific knowledge (calculus, AI, organic chemistry) or highly skilled employees (beyond basic safety training).

Focus on Fundamentals: The emphasis is on disciplined attention to basic operational aspects.

E. Cultural Change and Long-Term Impact

Leadership Buy-in: Implementing effective housekeeping requires strong support from top executives.

Time Commitment: It is a process that takes time, with an estimated year to bring a facility up to the described standard.

Preventing Shutdowns: The author posits that many mills shut down in North America could have avoided closure through consistent application of these principles, leading to sustained profitability.

"Last Mill Standing" Mentality: In declining industries (like newsprint or P&W), superior housekeeping and resulting profitability can ensure a company's survival and dominance within its niche.

F. Illustrative Anecdotes

Hampton Inn (Perry, Florida): This story exemplifies how meticulous attention to detail, even by franchise owners themselves, can lead to exceptional performance (Connie Award, 99%+ occupancy) and profitability, demonstrating that the principles apply beyond industrial settings.

Papermill Transformation: This narrative highlights a mill's successful turnaround from unprofitability through dedicated management and good housekeeping practices, demonstrating that improvements are possible even without external capital. Conversely, the mill's eventual demolition after new ownership abandoned these practices underscores the critical, long-term impact of maintaining high housekeeping standards.

G. Call to Action

The article concludes with a direct challenge to readers to honestly evaluate their own operations and take immediate action if they are "on the bubble" (at risk of failure).

II. Quiz

Answer the following questions in 2-3 sentences each.

1. According to the author, what are the primary high objectives that low-tech housekeeping can easily achieve?
2. What specific areas does Jim Thompson recommend inspecting during a half-hour tour to evaluate a mill's management and profitability?
3. Why does the author state that highly skilled employees are not necessarily required for effective housekeeping, beyond safety training?
4. What is the significance of the "Connie" award won by the Hampton Inn in Perry, Florida, in the context of the article's message?
5. How long does the author estimate it takes to bring a mill up to the level of housekeeping he discusses?
6. What does the author suggest is crucial from top executives for successful cultural change related to housekeeping?
7. Explain the "last mill standing" concept as applied to industries like newsprint or P&W.
8. How did the new owners of the transformed papermill in the second story view housekeeping, and what was the ultimate consequence of their approach?
9. Why does the author believe that some of the mills shut down in North America could have avoided closure?
10. What broader message about control and effort does the author convey with his concluding thought about the papermill story?

III. Quiz Answer Key

1. According to the author, low-tech housekeeping can easily achieve the high objectives of better management, higher employee morale, and increased profitability. These outcomes are presented as direct results of a focused approach to facility upkeep.
2. During a half-hour tour, Jim Thompson recommends inspecting the furthest water outfall (and intake), the roofs, the basement, and maintenance stores. He considers these areas key indicators of a mill's true management quality and profitability.
3. The author states that highly skilled employees are not necessarily required because the principles of good housekeeping do not involve complex scientific or advanced technical knowledge. The focus is on disciplined execution of fundamental practices, with safety training being the primary skill requirement.
4. The "Connie" award signifies that the Hampton Inn in Perry, Florida, was consistently rated the top hotel in the entire Hilton chain based on all grading points. This illustrates how meticulous housekeeping and hands-on management by the owners led to exceptional performance and profitability in a non-industrial setting.
5. The author estimates that it will take about a year to bring a mill to the high level of housekeeping and operational excellence he advocates. This timeframe underscores that achieving significant improvement is a process requiring sustained effort.
6. For successful cultural change related to housekeeping, the author suggests that strong support from the top executives on the site is crucial. Without this leadership buy-in, widespread adoption and maintenance of new standards would be difficult.
7. The "last mill standing" concept encourages companies in declining industries to strive for such superior profitability and operational excellence that they outlast their competitors. By being the most efficient and profitable, they can survive even as the overall market shrinks.
8. The new owners of the transformed papermill viewed housekeeping as "extravagant nonsense." As a consequence of abandoning these practices, the mill declined significantly within three years and was ultimately demolished in five years.
9. The author believes some North American mills could have avoided closure if, several years prior, they had implemented the housekeeping principles he outlined. This would have led to sustained profitability, making them less likely to be considered for shutdown by their boards of directors.
10. With his concluding thought, the author conveys that while one cannot control every external factor (like corporate decisions to sell), it is still essential to do one's best when the optimal course of action is known. This emphasizes personal responsibility and proactive effort despite uncontrollable circumstances.

IV. Essay Format Questions

• Analyze the author's argument that housekeeping, despite being "low tech," can achieve "high objectives." Discuss the specific objectives mentioned and elaborate on how the simplicity of the approach contributes to its effectiveness.
• Compare and contrast the two anecdotes provided (Hampton Inn and the papermill) to illustrate the core principles of the article. What common lessons about management, profitability, and the impact of housekeeping can be drawn from both stories?
• The author emphasizes that changing cultures is hard and requires support from top executives and time. Discuss the organizational challenges involved in implementing a comprehensive housekeeping culture and explain why leadership buy-in and a long-term perspective are critical for success.
• Evaluate the author's selection of specific areas (water outfall, roofs, basement, maintenance stores) for quick assessment of a mill's health. Why are these seemingly mundane areas better indicators of overall management and profitability than, for example, the main driveway and front lawn?
• Beyond the direct financial implications, discuss the potential impacts of a strong housekeeping culture on employee morale, safety, and a company's competitive advantage, as suggested or implied by the article.

V. Glossary of Key Terms

Housekeeping: In the context of the article, this refers to the organized and systematic maintenance of a facility and its operational areas, extending beyond mere tidiness to encompass a fundamental approach to management.

GMP (Good Manufacturing Practices): A system for ensuring that products are consistently produced and controlled according to quality standards; referenced here as a framework for formalized housekeeping in industrial settings.

Water Outfall (and Intake): The points where water is discharged from (and taken into) an industrial facility, serving as critical indicators of environmental compliance and operational maintenance.

Roofs: The protective covering of a building; their condition is indicative of preventative maintenance and investment in infrastructure.

Basement: The lowest floor of a building, often prone to neglect or issues like leaks and disorganization, thus serving as a key indicator of thorough facility management.

Maintenance Stores: The area where spare parts, tools, and supplies for equipment repair and upkeep are kept; their organization and inventory management reflect operational efficiency.

Profitability: The state or condition of yielding a financial profit or gain; a key objective that good housekeeping aims to enhance.

Morale: The confidence, enthusiasm, and discipline of a person or group at a particular time; good housekeeping is linked to higher employee morale.

Cultural Change: The process of altering the beliefs, values, and practices of an organization; the article emphasizes that implementing effective housekeeping requires significant cultural change.

On the Bubble: An idiom meaning to be in a precarious or risky situation, especially close to failure or elimination.

Last Mill Standing: A concept advocating for such superior operational efficiency and profitability that a company survives and thrives even as its industry declines.

Connie Award: An award given by Hilton (master owners of Hampton Inn) to the top-performing hotel in their chain, named after Conrad Hilton, symbolizing excellence in hotel management and guest experience.

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