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

2 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?

3 Hulamin in a Nutshell First established1949 Listed (First listing)2007 (1969) Core businessRolling and extruding aluminium (manufacturing) Nature of business Niche supplier (250k tons) of high value, high margin products in 16m tons consolidated global market Global markets70% export, (USA, EU, Asia, Middle East) Customers’ industriesPackaging, Automotive, Other, Transport etc.

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

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

6 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 Formation of IMA to drive business excellence which includes Equipment Performance; 2011Establishment of Centralised Engineering to control standards and specialist support.

7 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.

8 Audit against best practice to establish the gap

9 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.

10 Systems Choices (decide what you need) OR

11 Manufacturing Systems – The Hulamin way Oracle (Financials Only), Legacy HR

12 Efficiency indicators Inline with Strategy; Automated reporting; Part of continues improvement; Feedbac k EP Strategy Development Criticality; Cross functional teams; Input Process and Equipment Info like FMEA; Change Management; Priority Predictive; STRATEGY CMMS KPI’s RCA Equipment Master data Executio n RCA Planning and Scheduling Spares / Materials Management Systems view of applied strategy

13 Systems integration STRATEGY CMMS KPI’s RCA G8D Master Plan BES KPI’s Same Process Integrated System Maintenance Process One System Master plan and PMO strategy aligned

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

15 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;

16 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.

17 Sustaining Strategy – Overall Equipment Performance OEE = Availability (%) x Performance (%) x Quality rate (%); Availability is the ratio of Operating Time to Planned Production Time; (Calculated as scheduled uptime as ratio of actual uptime); Performance is the ratio of net operating time to operating time; (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.

18 Sustaining Strategy – Overall Equipment Performance

19 Sustaining Strategy – Work Management

20 Sustaining Strategy – Maintenance Dashboard

21 Sustaining Strategy – Planning and Scheduling

22 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.

23 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

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

25 Questions?