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your presenters today are miko villama and david williams together they have over six decades of experience in the paper industry working in various functions ranging from the wet end to the dry end of the paper machine dave is currently the roll cover and maintenance technology unit leader in north america mikko is a director of north american service agreements and works with scoping and implementation of agreements today's webinar will describe how to improve role asset management reduce risks and lower costs with the valmet roll cover and maintenance agreement miko is going to start off by explaining valmet's overall approach to after-market agreements then david will continue by looking specifically at the roll cover and maintenance agreement he'll discuss the benefits of an agreement how an agreement works examples of what we have achieved with agreements and customers what types of services and modernizations can be included in a tailored agreement finally we'll allow 10 to 15 minutes of time at the end for questions and answers take it away mikko so good afternoon everyone as you heard my name is mikko yama and i'm the head of the malmets agreement business here in north america i've been with walmart for 25 years from where the last 15 years or so in north america and i am currently located in atlanta georgia here before we let dave talk about roles i'm just going to give a short 10 minute overview from 25 000 feet of walmart's agreement business how walmart approaches these agreements and what are some of the things our customers are looking for from these partnerships about 10 years ago wellman made a strategic decision to focus on long-term agreements this wasn't really a difficult decision to make as the message from customers you guys were loud and clear you wanted to move away when possible from traditional transactional business and were willing to seek out other easier methods to do business with volumet and as a result of this today as you see about every third production line here in north america has some sort of agreement with development a little bit of our service is philosophy and if you start from the bottom you see that the start from our core values which are safety comes first we want to be close to you guys we have people you can trust and hopefully also solutions to match your needs the second layer of this philosophy is the life cycle approach which means that we want to be part of the product from the day one when it leaves our facility the end of uh today it becomes obsolete and the third layer of this uh walmart's media service our delivery models where we have the service agreements which are the part of today's topic and the fourth and the last final layer is our service offering itself this means mainly the previously mentioned traditional transactional business you see the same offering here with maybe a little more details and i'm assuming that most of you are familiar with these so i'm not going to go through these rather than my message here when we look at this slide is that basically anything environment offers may be a product or service can be built to an agreement format so if you are buying something regularly from valmik i would highly recommend that you ask from your local friendly mill sales manager if there are any opportunities to simplify this business and make it hopefully even more beneficial for both parties so what's typical for an agreement then my personal opinion is that it makes little sense to make an agreement which is for one year or two years therefore i i always recommend at least to start with the three year agreement the reasons for this are that it takes some time to get to know each other us to understand how you operate and what might be the possible challenges you have at your meal so we typically start with the three-year agreement and hopefully at the end of that three-year period we are ended up extending this agreement for another set of periods these agreements can be either corporate level agreements or mid-level agreements and if they are corporate level agreements they typically work so that the individual meals are automatically joined to the agreement or the meals can choose if they want to be part of an agreement with corporate agreements and here i'm talking about again any kind of agreement roles doctors consumables so on we talk about different tier levels typically depending on the business volume that the mill does with parliament and with these different tier levels we of course include different services and incentives and programs such as for example continuous improvement programs we approach obama approaches these agreements as projects and as project agreements have also a dedicated project or an agreement manager who manages these agreements especially if it's a corporate level agreement we do have established a dedicated agreement manager for that agreement one of the benefits with an agreement is commonly established terms and conditions which at least in a theory should make the cooperation easier these ts and cs for sure help if in the future we add other agreements to this portfolio part of doing the business easier is price lists which mean that you don't have to every time ask a price for something you need and typically with the agreements volumet provides a fixed pricing for the following 12 months always and last but not least if there's something we have learned in the past 15 years it's that communication is the key to a successful agreement with my own agreements i typically propose that when we start a new agreement we meet on quarterly basis during the first year and if everything goes fine during the first year i recommend that we meet twice the second year and after that it's basically up to you how often do you want to meet me but i personally would like to keep the second year schedule and still meet twice a year just to make sure that everything is okay as i said in the beginning we do have a lot of agreements but very few of these agreements are identical and the reason for this is that we do always want to tailor these agreements to specific needs or targets you guys have one customer might be looking for safety improvements and another one tries to for example lower their production cost and the same tailoring shows up also without offering and what i mean by this is that of course the customer decides what products or technologies should be part of the agreement but after that also we want to identify if there's any other complementary services which should be part of an agreement we are also very flexible when it comes to choosing how we price an agreement and this is the part where i would like to challenge you guys a bit an agreement doesn't always have to be based on fixed or monthly pricing make us earn your money your business by selecting a pricing model which is based on for example how many tonnages you produce or get out of the door so something to think about what i wanted to point out here is that we environment people are famous of wanting to talk about our own products and services but i personally would like to turn this 180 degrees around and look at each of your male functions or personal the tasks and responsibilities they have and understand what keeps these people awake at tonight and if there are some challenges especially if behind you behind you to concentrate your core business which is making paper border tissue let's see if there's something we can offer to help you with these challenges and just as an example about uh we'll show people like superintendent and maintenance manager and you probably can't read that but we have listed one of the possible tools for maintenance manager would be conditioning monitoring just as a simple example here so a lot of agreements but not too many identical one so even with a lot of different agreements we still see some trends some common drivers which makes our customers search these partnerships and by far the reason one number one is reliability it seems like everybody's looking for more reliable operations partners etc and a solid number two is cost i'm not talking about now finding the lowest price i'm talking about partnering with someone who can reduce the overall cost during a certain time frame and also helps to mill the customer to budget this cost and stay within the budgeted cost everyone appreciates a proactive partner and to give an example how walmart does this proactive approach we can take a look at for example the role agreements which dave is going to talk in a moment we always start those with the baseline audi to understand the current situation enough to be know what that is and what the kpis and the targets for that meal is we'll build a roadmap how to achieve those goals and basically what this means in practice that walmart becomes responsible of the roles and it's our job to make sure that the roles are changed or served when needed last one is rather given but still worth mentioning and that is the expectation that the supply you partner with will constantly improve what you do or what they do we signed the first agreement 15 years ago with temple in and ontario mill we have a culture of doing these agreements and we also have dedicated group of people who manage these agreements the most important thing for us is to understand each customer's specific kpis and targets so that we can build that tailored agreement for that customer and when we have those kbis and goals then these will become our commitment and our common goals and achieve for both of us i already mentioned the total cost of ownership the tco approach so with vomit agreements you'll get access and support not only from our local people in north america but also from our experts globally and with that dave i'll give the floor to you thank you okay as mikko mentioned to you guys there are several levels of agreement within the different service models of valmet ranging from spare parts and mill site services role services etc but even within the role portion of the business within our service sector we have ranges of agreements there as well amiko mentioned the first agreement being temple inland corporation in the mid 2000s prior to that we even had a single mill agreement which probably started several years prior to that in the 2004 range and that would have been probably what you look at on this scale as a supply agreement with discounts associated with a volume given to us to work on if you took a step back towards transactional from there something like a grinding agreement might fit in the transaction level but we can tailor that up including technical support for role services roll side and onsite services for roles we can broaden the role agreement to include other portions of the service sector within valmet to make it more of a maintenance production support agreement which would include maybe spares and or maybe mio as well but in several cases we have gone to the level of including valmet staff on site at the mill either in the capability of sort of a role manager or role champion which handled scheduling for role changes scheduling for roll maintenance whether the maintenance was being done by valmet or some other supplier keeping records working with the mills repair shop and effectively being what some corporation's term a world champion the other side of that at the middle level service is uh in some cases we have taken over the roll service or repair shop at the mill basically eliminating the need except for recoverings to put a role on a truck and send it elsewhere which is good for bearings and really not so bad for wear and tear riding down the road on the roll if you can keep it in-house there are obvious benefits of knowing exactly where it is being able to go touch it better for the bearings and much easier to schedule what's happening to the roll so if you were to back up to this previous slide and let's say we were going to pick a technical support agreement or a maintenance production agreement this next slide is sort of tailored to the steps that would be taken in order to implement that agreement and it all starts if you're a new customer it starts with audits of both covers and the mechanicals of the roles so we understand what you have then that baseline of where you are is compared to what your goals are and by comparing what's currently in service and what your expectations are for performance in cycle times we can sort of map out from there what the scope of work needs to be and if the desired run times are maybe a little bit more challenging than what the current equipment can do then we have upgrades and things of that nature to help extend your run times as well once the path forward is chosen miko's group steps in as a agreement manager the goals are set and we have semi-annual annual or quarterly reviews based on the customer's desire to touch base and see how we are performing against what our goals are the information can be kept in valmet asset manager some of you guys may be familiar with an older term known as role tracer rolltracer has been upgraded to the point now where it can house all of the history and scheduling needs for not just rolls but safe fabrics and spare parts as well so it's a broader service than just a roll tracking system then as far as what type of support you guys should expect both off-site and on-site from your mill typically the way it would work this focuses on a single role if you will typically there is a product sales manager there to support during the down day when the roll is removed it's up to the customer typically whether they want to handle the logistics to move the role or they won't voumet to the role is torn down inspected documentations of inspections are created and sent if there is no additional work that needs to be done the remainder of the maintenance is taken care of at the end of the day the documentations in the reports are pulled together sent to the customer within the same time frame as the role is returned and then usually we would have the psm there also for installation support including things like nip impressions and things like that when we take our service models and some of our different technologies that we can use for simulations and whatnot we can look at what happens in between when we service the role and the next time it's removed we can compare based on vast experience with new machines and old machines where your equipment is running compared to your competitors in benchmarking that's always of interest to people performance optimization through simulations is never a bad thing to take a look at where you are versus what you might be able to do to get you to peak performance condition monitoring whether it be through eye rolls or accelerometers or by monitoring the equipment in conjunction with our automation group using the industrial internet all those things are available for condition monitoring then as simple as using the asset manager you can monitor conditions to some extent that way just by comparing runtimes and what was done on different maintenance services as well we do have a whole host of integrated advisors from product sales managers to product managers to agreement managers all they're willing to help some of the issues that people run into when it comes to roll services often working roles can be quite complex working on them yourself or having someone who's not the oem work on them can occasionally impact reliability if different clearances and original specs for bearing set points seal clearances within a suction roll sealer clearances within a crown control roll all that stuff is documented by the oem and it's not something that's available for others typically speaking and being able to go back and compare that on complex roles can really improve performance long term on that the advantage there would be a reduction in downtime hopefully an increase in efficiency and even potential equality for quality reliability tags along with that as your efficiency goes up and simply dealing with a whole host of different suppliers can seem that it's less expensive up front but from a managerial standpoint it's always more of a burden and when you're focusing on things like that there are often things that you would rather be focusing on that have a bigger impact to your production so the systematic approach basically we feel that you have pretty vast experience running your own mill we have experience building roles rebuilding roles making covers on the service side but we also have the access to valmet technology and new equipment through the capital group combining those three and working together really can equal to a solutions package that are very difficult to be touched by others reducing cost managing your assets and even understanding what your next investments need to be can be very beneficial and improve revenue this last bullet point we sort of touched on it's a it's a reiteration of the different levels of agreements that are available out there even just for roles could be a simple grinding contract could be a simple mechanical contract maybe only just covers or we could even get involved under the right circumstances and help you run your service center there at your mill the other piece that is integrated pretty well within roll contracts is replacement roles the technical age of most machines in north america is probably an average of installed date of around 1985 that means there is a lot of old but robust equipment out there still running well but since 1985 you can look at the host of suppliers that are now under the valmet umbrella we've made significant technology improvements in all types of roles in that time frame and as you order a new spare role obviously we cross reference the age of your role the design of your role and consider what types of upgrades can be made to that role to impact its run time and its performance while it's in the machine when it comes to discussing saving money and agreements case studies often open eyes better than nearly anything else so we're going to run through several case studies here some from just a standard mechanical service agreement a tissue and maybe two board examples this was a fine paper mill in the northeast who had an agreement with a local shop but was unaware of seal clearances on the suction roll seals to the shell they were unaware of the decal clearances on the end and what they needed to be they didn't have bearing clearances necessary other than from the book and there were a lot of details about old beloit or valmet roll that was being serviced locally simply by taking it back to oem standards they were able to take the roll as you can see i didn't count them but maybe there's 20 runs there they had two or three runs maybe four or five two that barely made it over a 180 day mark so we'll say their average at best was half a year and by revisiting and inspecting the proper fits and clearances nothing special was done from a modernization standpoint or an improvement standpoint but simply going back to oem standards allowed them to almost triple that what type of benefits usually come from this type of agreement usually the ones that pay off in large dividends increase production improve sheet handling which improves sheet handling actually becomes increased production and in some cases better sheet quality if you're able to avoid things like sheet marking and things like that that allows you to chase a different customer base and the other examples when it comes to production increases like on the left on the bottom you can hit relatively large dollar values but the one on the bottom right i may be more familiar with this is uh effectively a pickup roll where edges were dropping off and by taking a look at the design of the suction box and or the design of the shell over the suction box if you can eliminate busted edges and save a break or two a month the money adds up really quickly this is the first of our liner board this is really a lightweight liner board slash bag producer in the southeast this machine was built in 1980s and originally commissioned to run high-speed newsprint they came to us after originally replacing the granite roll with a press jade release type cover which is designed for high stickies in recycled lwc and or newsprint they were moving the board and they came to us asking hey we understand that there's give and take between the two designs of a press jw and a press jade release put simply without over complicating it the w stands for wear and or wood containing grades and release stands for high deep content so the release design is to combat stickies the w has a little bit less focus on release and a little bit more focus on long-term wear and this customer was concerned that when they went to a wood containing grade that they were going to wear this roll out we talked them into not making the change leaving the press jade r in place to make sure that their concerns were warranted or not and in the end they're still able to run the role to three-year intervals with no conditionings in between the second example is a board producer in the south and these guys had an original build of 1964 put in with an open enp shoe press in 1996 they have probably an lmp would be the best way to describe their first press followed by the shoe press for that design to be able to thread the press section you have to have what's known as a rabbit trap and what that allows you to do moving to the next page is the rabbit trap shown correctly maintained on the right allows you to focus your vacuum on the area where the tail threads if you don't get this interchanging mechanism to open and close that doorway there you will have vacuum on the whole roll which will maybe allow you to still tail the thread maybe not as effectively because the lack of vacuum density there in that front edge but the real issue is is you have a tendency to try to pick the whole sheet up and picking the whole sheet up at one time going through a shoe press was a bit of a problem for these guys a huge risk of wrecking the shoe press so being able to go back to original design and original intent of this role saved quite a big press wreck here's another rebuild type situation the machine was originally a 1977 tempela rebuilt by beloit 99 with two back-to-back clothes no these are both open emps still and this particular customer was struggling uh pretty bad with roll cover wear and blankets wear and even mechanical wear on the inside of the roll and we were able to modernize this role installing capillary tubes what is known as a hydrostatic type shoe vastly improving the lubrication reducing temperatures basically not just saving the role itself but all the equipment and tune around it this is more of a tissue case in the tissue mills the nips against the yankee with pressure rolls and suction rolls is basically the most important thing going on this particular customer we had done some background work for them to simulate the differences between rubber and poly we found that moving to a poly would improve their solids some but we also when we sold these covers this is a case in south korea we sold these covers we also sold them what's known as an iro portable both valmet and some other suppliers supply permanent eye roll type or smart roll type devices inside the cover for monitoring pressure and giving the customer an indication of what their nip profile is like while the roll covers in operation the portable iro is something that only viometa offers and this allows us to install a similar sensor on the surface of the roll and allows us to run it up to speed and check all of the profiles and if you have an accurate design of experiment for lack of better ways to put it if you know what you want to look at when you get started you can solve nearly as many problems as you would be able to solve with a permanent install and you can accomplish everything you want to accomplish in a four to eight hour time frame and you don't have to worry about the long-term maintenance hassles of trying to keep milliamp type electronics running in a very wet environment it can be done but it's not easy in this particular case the customer was showing a pretty poor front to back skewing on their suction roll and the second press roll showed pretty significant drop offs on the edges they were not able to maintain the pressure out on the edge whether it had something to do with the roll or the yankee i'm a little bit unsure if i haven't studied the case that much but by analyzing the eye roll data they were able to create a new crowning profile for the role which improved not only their overall solids coming off the yankee but it improved their profile now i'm going to step back to the previous slide to sort of review the results there they saw a five percent steam consumption reduction and also saw with uh improved moisture profile and improved solids coming off the yankee saw an increase of 30 meters per minute which had they taken that five percent steam consumption as well it would have been an even bigger gains on the production side to maybe spend a few minutes explaining our maintenance concept we talk about scheduled maintenance or regular maintenance services there on the left i would say think of that as an oil change rather than a full re-haul on your vehicle this is where the roll comes in and where parts are changed where parts that might make it a second run are inspected and we do not totally tear down bearing assemblies that's the key to what a scheduled maintenance is if you're running a for example if you run a tissue machine it's an oil based application and you get six months on a rubber cover in the nip you may pull it out after six months grind it put it back in the machine pull it out after another six months do a scheduled maintenance on it put it back in the machine for six months pull it out grind it and then on that next maintenance rotation you would potentially go to what we call reconditioned services where not only are you going through your uh regular wear components but at this point you're going to tear down inspect the journals indeed tj journals ndt the heads and let's verify that all of the long term components are still in good shape then finally on the right there what's highlighted in the box is what in north america we call modernizations but i think on the global level they still call it upgrade type products and you've heard me mention that a few times on the call here and i wanted to make sure you guys were aware of what i'm talking about again if you go back to potentially average age of equipment in north america at least roll equipment in north america being maybe 1985 there have been a lot of upgrades to both suction rolls and cc rolls in the past 35 years so here's just some examples uh some of the older designs uh tempela or carcano or someone like that might not have the internal worm screw for adjusting the box in which case uh customers at times if they want to adjust a cooch roll or a pickup roll they may actually have to put the sheet in the couch to be able to move the box that's painful and can be upgraded to a box that you can rotate on your own i'm not going to go through each of these but another one worth mentioning is the internal shelf low h oscillating internal shower which today we also have a compact version of that for maybe north america specifically because uh 70 percent of the installed base here is beloit and the fit between the box and the shell is a little tighter for beloit rolls so the compact version may be thought of as a beloit design for internal cleaning showers this basically is water driven it oscillates back and forth it can be tuned in to come on during breaks and clean the shell from the inside out rather than from the outside in today most suction rolls that have cleaning showers are outside in the advantage of being internal is that all of the material knocked out of the shells now being knocked out of the shell instead of getting caught up in your suction box and anything else you wouldn't want it to get involved with if you had some uh vacuum leakages going different ways you could even be preventing water from getting into your bearings so that's another example of these can you guys can can study these and if you've got something that strikes your fancy you can contact us a quick two slide opportunity to talk about crown control role upgrades one of which that i see to be most beneficial is your standard beloit cc role designed in the 60s probably on up into the 90s often had a inline drive hub and due to that i had to have a triple race bearing and triple race bearings now are manufactured on limited manufacturing schedules and they are as a result quite expensive but by altering that design to a standard bearing with a gearbox and an offset drive you may have to spend a little money on the modernization but it puts you in a place where your spares and bill of materials and components for the role are now much more standardized and saves a lot of money in the long term another example of upgrading an old beloit design to a newer design is the lrco modification where on a cc roll gearbox to roll interface they would use the gray on the left which were rubber bellow seals and as you guys know as rubber ages it starts to crack if you don't believe me go look at the side walls on your vehicle if you've got a whole set of tires especially if you live in the south where there's a lot of sun you'll eventually start to crack well these bellows would do the same and as a result you'd have safety hazards and oil losses all of which cost money today the lr seal is a mechanical replacement of those rubber bellows which the mechanical seal can't rot on the shelf because it's not rubber in summary of the things we've talked about from roll services agreements wanted to point out again that we talked about a very wide range of service agreement types i will admit we are trying to standardize for our own sake maybe discount levels so that we don't get confused between our different customers we kind of have a standard offering of what sort of discounts we would offer but it doesn't mean that the range of service types would be limited in any way commercial and value-added benefits of a service agreement we discussed that a bit what the implementation schedule and how it would be implemented was discussed a little bit what type of replacement roles and how that would dovetail into the service agreement was discussed we reviewed four case studies and described the modular maintenance concept each service visit should not be the same there's plenty of ways to save money by understanding your equipment how it needs to be serviced really no different than a vehicle and then modernizations and what those are and what that word means that was great presentation dave and mikko thank you very much now before we get into the q a portion of this webinar let me say that this presentation is available in pdf form simply email david david.williams at valmet.com or mikko at miko.vilhama valmatt.com and they'll be happy to send you a copy we've received a fair number of questions already but you can still submit them during this q a period if mikko and david cannot answer them today because they need more information or the question deals with confidential matters they'll be sure to email you a comprehensive answer after the webinar we've got both david and mikko unmuted whichever view wants to start first do some q a take it away yeah i can i can start david ward there's a question about continuous improvement and i guess i wasn't very specific what that means the person is asking what is it and how does it work so continuous improvement is a program where we basically when we come and visit your mail regularly we have people experts specialists there we know that we typically find some savings or improvements from your projects so it's kind of a commitment from walmart's side that when we have an agreement together we promise that we can find some savings or improvements like i said from any part of your process any part of the meal typically this continuous improvement is related to the for example the volume of business so let's say that you you do x amount of volume involvement against that x we promise you amount of of savings or improvements back to you guys so you know that we are committed we are in this together and walmart is there to help and support you are valmet role agreements only for vowelmat roles or can the agreement be used including analysis and upgrades for non-valmet roles and the answer is the agreements can work for anyone we have agreements with customers that have competitors roles as well if there is uh anything that needs to be navigated to that end might be working on spare parts packages for the role with the other supplier if we are unable to uh back engineer it but in most cases we are i have a question here so if we do business with vomit in different areas like we find a place and vacuum elements on the table can under-related things be bundled in an agreement and is there an additional benefit rather than doing separate ones the answer is yes we definitely can bundle and yes it definitely makes sense to bundle again more more things we can tie together more benefits we can find for both of us and we can definitely provide more incentives and services when our people are already regularly visiting the meal this typically something one person can do one more than just one agreement to look after one agreement so absolutely yes let's bundle and yes definitely benefits for for the customer specifically is there any cost associated with an initial site visit to perform an audit or assessment to determine how you could best support us and i would say that the answer to that question is no uh but those type of original visits to kind of weigh out uh how the relationship works best are often handled by the sales group and the product sales managers and then the product managers and the business unit gets more involved after the agreement has been signed the answer to your question is within the value meta organization there's enough people that we would be able to pull that off and maybe maybe we have some small issues going on right now around covid with people being able to come across the border and whatnot but we would be able to work through that and make that happen so if you would discuss with your sales team we could figure something out on how to do some sort of initial audit i have a question or i got a question regarding uh incentives and services and it's it's funny if people are usually interested about free stuff so so as an example of what we can provide as a as a part of agreement that we don't have to charge anything separately is of course like they've also mentioned access to our proprietary programs like asset managers and whatnot we can do troubleshooting typically with the agreements we can send people over to help you with certain issues and then uh i don't remember if they mentioned but we do have a lot of simulation and and and other programs we can help help to define what's the what's the best cover type what should be the dryness out of the press we have a benchmark study globally we can use so we can we can compare your machine to other machines and see where you are and where maybe you can be if we do something so so those are typical examples i would say from the from the fee services and incentives we provide with the agreement some of those were highlighted in that circular slide that will be distributed uh showing the life cycle of the role repair any further questions okay well i hope we're able to respond to most if not all of your questions today if not dave and mikko will follow up via email with anyone whose question we were unable to answer we'll also be emailing your link to the recorded webinar as soon as it's available on youtube at valmic's youtube channel if you have any further questions email them to david.williams valmet.com or mikko.yama valmet.com or reach out to them at linkedin and they can go more in depth with you about any needs you have for roll covers maintenance and agreements we hope you've gained some valuable knowledge about roll covers maintenance modernizations involvement agreements today that can help your mill moving forward and thank you for giving us all your time today and we hope you'll join us at future development webinars bye