“Lean and Green” at a Romanian secondary tissue paper and board mill—putting theory into practice

Abstract

A three-year environmental project was implemented at the Petrocart S.A. paper and board mill, through the Danish Support Programme for Eastern Europe (DANCEE). The aim was to use “Lean and Green” Production to improve industrial compliance with the effluent regulations and with EUs IPPC Directive under implementation in Romania, thereby improving the environmental conditions in the Bistrita River running through the town. The results obtained included an 87% reduction of the discharge of wastewater from 5300 to about 700 m 3/day. Previously, the effluent was subjected to primary treatment only. The reduction in flow reduced mill fibre losses and allowed discharge to an existing, underloaded, municipal treatment system, where primary and secondary treatment is operated. Further results obtained were better housekeeping (5S and Kaizen) and a Total Quality Management (TQM) organisation was implemented where product quality, environment and occupational health and safety are merged into one system. Twenty-eight TQM groups were formed, each with a representative from management and elected among workers. The mill's employment is slightly higher today, and the gross turnover and profitability has almost tripled. Had Petrocart had the financial resources themselves carried the project through without DANCEE support, the payback time for the project would have been 3.7 years for the total of €2 million spent. Petrocart no longer pays penalties for environmental non-compliance. The performance contributes to IPPC-approval. The project was implemented within the framework of DANCEE's procedures, which is based on the Logical Framework Approach (LFA) for project management. The PRojects IN Controlled Environments (PRINCE2™) model for project management was also applied. This article analyses how the results were achieved and how Lean and Green thinking as well as good project management practices, such as LFA and PRINCE2 were applied to turn around an old Eastern European company to survive privatization.