Southern Pulp and Paper
Southern Pulp and Paper The Toccoa Mill in Georgia was purchased by Southern Pulp and Paper in 1984. Toccoa is the only operation in Southern's business that is fully integrated by having a mill with a pulping plant. Twelve years later, management is asking whether or not to invest $15 million in capital into the plant to help productivity. The alternative is to review the scheduling process of production runs to minimize lost productivity.
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…is acceptable.
4.<Tab/>What is the cost of new #5 & #6 machines and their output? Should we invest $15 million for a 51% & 3% increase versus new #5 & #6 machines that have outputs close to 200 TPD like every other machine in the mill.
5.<Tab/>What will the new "lost production" rate be? Currently its rate is 17.3 tons. The upgrade will not completely eliminate "lost production". Target is 10.4 tons.
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