Integrating Corporate Strategy and Maintenance Execution Vetasi South

Integrating Corporate Strategy and Maintenance Execution Vetasi South Africa Maximo Day 2012 Jaco White: 19 November 2012

Agenda 1. Hulamin in a Nutshell; 2. The Aluminium Value Chain; 3. Integrated Manufacturing Approach (IMA); 4. Hulamin’s historical View of Asset care; 5. Asset Management Strategy; 6. Deployment Strategy; 7. Successes; 8. Challenges; 9. Looking Ahead 10. Questions? 2

Hulamin in a Nutshell First established 1949 Listed (First listing) 2007 (1969) Core business Rolling and extruding aluminium (manufacturing) Nature of business Niche supplier (250 k tons) of high value, high margin products in 16 m tons consolidated global market Global markets 70% export, (USA, EU, Asia, Middle East) Customers’ industries Packaging, Automotive, Other, Transport etc. 3

The Aluminium Value Chain (in SA) BHP Billiton 4 Hulamin Fabricators and Distributors e. g. Nampak, Mac. Steel, etc.

The Integrated Manufacturing Approach (IMA) 5 • Process Control • Equipment Performance • Improvement Projects • Business Processes • Visual Management

Hulamin’s historical approach to asset care 1990’s Strong centralised control of standards and execution; 2000’s Complete decentralised approach with limited centralised support; • Maximo only used as procurement system; • Maintenance Plans Excel based; • Fragmented pockets of excellence. Each area doing the best with what it has. 2006 Formation of IMA to drive business excellence which includes Equipment Performance; 2011 Establishment of Centralised Engineering to control standards and specialist support. 6

Approach to formulating our maintenace strategy • Inclusive process; • Establish best practice internationally using: • Vetasi; • SMS Siemag – Germany; • OMCS – Canada; • International Standards like SMRP. • Interviews with role players within Hulamin; • PAS 55 Audit. 7

Audit against best practice to establish the gap - 2010 Maximo Implementation 100 80 Maintenance Basics 60 Maintenance Plans 40 20 0 Team Structure Spares Management 8 Incident Management Downtime Analysis

Core Elements of Maintenance Strategy • Know what assets we have; • Clear view on their performance against target; • Asset condition need to be visible - focus of life plan development on predictive maintenance; • Standardise maintenance strategy across same items within the business; • Use CMMS to drive work execution; • Sound Planning and Scheduling systems and routines; • Effective RCA Process; • Ensure effective reporting on equipment and management systems performance. 9

Systems Choices (decide what you need) OR 10

Manufacturing Systems – The Hulamin way IBM Maximo OMCS PMO 2000 Microsoft Reporting Services Oracle (Financials Only), Legacy HR 11

Systems view of applied strategy EP Strategy Development RCA • Criticality; RIMSys • Cross functional teams; PMO 2000 • Input Process and Equipment Info like STRATEGY FMEA; RCA • Change Management; • Priority Predictive; KPI’s CMMS Equipment Master data IBM Maximo Business Intelligence Planning and Scheduling Efficiency indicators • Inline with Strategy; • Automated reporting; • Part of continues improvement; 12 Feedback Execution Spares / Materials Management

Systems integration Maintenance STRATEGY RCA Same Process KPI’s CMMS Master plan and PMO strategy aligned Master Plan One System KPI’s Process 13 Integrated System G 8 D BES

Maximo Planning and Scheduling • Great work visualisation • Macro PM Balancing; • Detailed W/O scheduling; • Future labour utilisation; • Some reporting functionality; 14

Deployment Strategy • Communicate extensively to get alignment through MDWT structures; • Sound Project management principles applied; • Upfront involvement in business processes development; • Ownership in the Mini Business Unit of execution of plan. (Central Coordination and standards setting, but meaningful / tangible support); • Clearly defined Roles, Responsibilities and Routines, with strong sense of accountability; • Artisan level visual management to facilitate; • Clear view on what we will STOP doing; • 6 Weekly Visual Felt Leadership reviewing progress against plan as well as assessing behavioural change progress; • Automated KPI generation with focus on leading indicators to drive behaviour; 15

Equipment life plan development • Criticality review of more than 32, 000 for Severity, Occurrence and Detection • OMCS International (Australia) involved in setting up libraries; • OEM recommendations; • IDCON manuals; • Our own and OMCS experience. • Pragma facilitating RCM studies on top 10% of critical assets; • Compliance system built to report on adherence to critical work. 16

Sustaining Strategy – Overall Equipment Performance OEE = Availability (%) x Performance (%) x Quality rate (%); • Availability is the ratio of Operating Time to Planned Production Time; • • Performance is the ratio of net operating time to operating time; • • (Calculated as scheduled uptime as ratio of actual uptime); (Calculated as the ratio of ideal cycle time to actual cycle time); Quality Rate - measure of the processing waste; • (Calculated as the ratio of good pieces to total pieces against ideal). • Measured real-time by shop floor execution systems linked to equipment (BES); • Used business wide as measure of equipment performance; • 80% of all equipment utilising OEE measure. 17

Sustaining Strategy – Overall Equipment Performance 18

Sustaining Strategy – Work Management 19

Sustaining Strategy – Maintenance Dashboard 20

Sustaining Strategy – Planning and Scheduling 21

Successes • Real top down support with commitment on VFL process; • Well chosen software to facilitate strategy; • Well integrated system; • Excellent support from application developers; • MBU buy in excellent; • Equipment and systems KPI’s; • Engen Fluid Link lubrication program. 22

Challenges • Part of strategy formulation is to also to decide what to stop doing; • Underestimated the complexity of integrating various applications; • Getting the message across to artisans on why it is necessary to cover all work with a work order; • Changing the mind set of engineers to focus on Systems rather than the nuts and bolts of maintenance (important v/s urgent). 60% of effort on people 23

Looking Ahead • Maximo 7? • PASS 55? • TPM; • In-house Condition monitoring program; • Safety module within Maximo; 24

Questions? 25