Organization
Cost associated with Fiber, Chemicals, Energy, Machine Clothing, Packaging, and By-Products.
What is Variable Cost?
Cost associated with the installation of new assets.
What is Capital?
A workforce development program that also provides weekend meals for more than 750 students
What is Back-The-Pack?
Paper produced & sold that does not meet customer specifications.
What is Joblot/Rolled Pulp?
Higher or Lower : PM3 downtime cost us $15,000/hour.
Higher : Over $22,000/hour of Fixed Cost, not including Variable impacts.
Cost associated with Labor, Maintenance, Operating Supplies, & Administration.
What is Fixed Cost?
Cost accounts associated with on-hand direct variable materials.
What is Inventory?
The difference between the anticipated or actual spend vs. budget.
What is a Variance?
Operational cost that can be controlled at an individual employees level- regardless of position.
What is Controllable Cost?
Higher or Lower : Domestic shipments make up 80% of our volume.
Higher : We anticipate at least 44,000 per month in Domestic shipments (86%).
Earnings before interest, taxes, depreciation, and amortization.
What is EBITDA?
Cost accounts associated with the outstanding payments made to the mill.
What is Accounts Receivable?
$68,000,000 in P&L spending dedicated to the repair of existing assets.
What is the Maintenance Budget?
Funds set aside to address discovery work during the Annual Outage.
What is Contingency?
True or False : Only salaried team members own the responsibility of controlling cost.
False : Everyone has a responsibility to manage cost, which includes OT, work efficiency, and managing waste.
The net amount of cash left over after deducting operating expenses.
What is Profit?
Cost accounts associated with outstanding payments to be made to vendors.
What is Accounts Payable?
$40,000,000 in BS spending dedicated to the installation of new assets.
What is the Capital Budget?
Metrics that can be used to manage cost, performance, efficiency, and other useful patterns.
What is a Key Performance Indicator (KPI)?
True or False : Purchase order requisitioners are responsible for enforcing proper billing practices such as Lump Sum or Time & Material.
True : Requisitioners along with Procurement and Accounts Payable should hold vendors responsible for invoicing properly.
The cost metric used to gauge profitability amongst mills in the industry.
What is Cost per Ton?
The cost deferral method used to spread cost evenly throughout the year (ex. Annual Outage, Taxes, Roll Repairs).
What is Cost Amortization?
$350,000,000+ in spending on raw materials, services, repair materials and operating materials.
What is the Total Spending Budget?
The cost improvement budgeted and/or achieved when compared against a prior period.
What is Year-Over-Year improvement?
True or False : Maintaining a break-even cash flow will ensure the long term viability of the mill.
False : To ensure long term viability of the mill, we must decrease operational cost in an effort to generate revenue.