A systemic modeling approach to reengineering sawmills: a supplier’s perspective

Sawmill manufacturing systems are evolving to meet the needs of a changing business environment. One of the more significant changes is increased customer requirements for service, quality, and low prices. A systemic modeling approach is proposed as a tool to support business reengineering for sawmills to meet new business demands. A case study analyzes the business relationship between a softwood producer and a large homecenter chain to illustrate a recent trend in the lumber industry that requires changes to the manufacturing system. The elements of this modified relationship are the requirements to communicate through Electronic Data Interchange, to affix barcodes on every piece of lumber, and to maintain a self-replenishment stock of lumber in consignment at the reload site of the customer. In return, a long-term agreement is expected involving the delivery of large volumes of wood. First, the systemic modeling approach provides an image of this modified relationship; then it assesses the impact of the relationship on the softwood producer. Hence, several problems can be identified. Production coordination and control are particularly studied in their capacity to service fully the homecenter chain. Finally, systemic models are presented in the context of providing a framework to reengineer the process of customer servicing. A scheme is proposed for the integration of several functions of the Operating System in order to improve flexibility and responsiveness. The integration scheme also proposes to make use of available Information Technology to bring together powerful planning, simulation, and optimization tools. Completely reengineered processes are expected simultaneously to improve customer service and to significantly improve profitability in sawmill manufacturing systems.

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