The Productivity Improvement Process: (PIP) International Paper’s Initiatives to Transform a Manufacturing Organization

Abstract

In the fall of 1987 the senior management of International Paper Company initiated a project referred to as the Productivity Improvement Process (PIP). The purpose was to transform an existing operating facility (the Cincinnati folding carton plant), into a leader in its industry. The original objective of the project was “to make the Cincinnati plant (CP) the “best” Folding Carton organization in the industry and to have it serve as a model for other International Paper plants.” It was understood at the time that CP was a mediocre performer by most accepted measures (productivity, profitability, quality, safety, receptivity to innovation). At the same time the management and work force had shown consistent improvement and a “can do” attitude towards change. Senior Management turned to the Corporate Technology Organization and chartered the Operations Analysis/Industrial Engineering (OA/IE) group to play a key role in organizing and energizing PEP. The OA/IE group would also serve as the conduit to the entire corporate Technology organization and its staff of more than 500 scientists and engineers. The OA/IE group would have a partnership role with the plant and business group management team in providing leadership and management for the Project. From the outset the project was seen as a prototype effort that would serve as a model to be refined and applied selectively to many of the other 64 converting facilities owned by the company.