Solutions at Work: Packaging Corporation of America
After reviewing lift truck purchase orders, Chuck Zirretta of Packaging Corporation of America (PCA), realized that there was substantial financial waste in the way that PCA’s 600 lift trucks were serviced, maintained and operated.
Founded in 1959 by the consolidation of the Central Fiber Products Company, the American Box Board Company and the Ohio Boxboard Company, PCA is the fifth largest producer of container board and corrugated packaging products in the United States. With sales of $2.44 billion in 2010, PCA operates four paper mills and 68 corrugated products plants in 26 states across the U.S.
Implement a New Maintenance Solution
Chuck Zirretta, director of purchasing for PCA, decided to put his maintenance background to the test by reviewing PCA’s purchase orders to see what lift trucks were purchased and at what time. He realized that there was substantial financial waste in the way that PCA’s 600 lift trucks were serviced, maintained and operated. The question that remained in his mind was how to maximize lift truck productivity while minimizing maintenance costs.
In order to monitor maintenance spend, PCA teamed with Riekes to implement a pilot maintenance and operator monitoring program at their Omaha corrugating facility in 2009. Since implementing the pilot maintenance and operator monitoring programs three years ago, the Omaha plant has realized a savings to date of approximately $40,000-$50,000. PCA is confident that their total savings has increased due to operator accountability and the resulting minimization of repair costs. “I personally have a 25-year relationship with Yale® lift trucks, but PCA has undergone many acquisitions—and, as a result, inherited various lift truck brands,” said Zirretta.
Yale – a Strong Partner
“PCA decided that Yale was the best partner to do business with because of the strength of their dealer network, their commitment to our business, and the way that they conduct business themselves. Today, 95 percent of our lift truck fleet is Yale. Once the end result from one facility takes hold, the success catches like wildfire,” said Zirretta. “We are currently talking with one of our Northeast area managers whose facility is interested in instituting these programs to minimize maintenance costs and maximize potential savings.”