1. TPCM Supporting World Class Standards Supporting World Class Mining Standards Driving Efficiencies in the Pilbara

2. TPCM Supporting World Class Standards Current Situation (directive from above) 2 $5 Billion cut to Global Mining Operation costs Maintain Production Targets of increase of 25% by 2015 Reduced Staff Levels Increase efficiencies across the board at all Mine Sites

3. TPCM Supporting World Class Standards Maintenance Costs 3 30-50% of the operating costs Annual bill is about $10 billion Equally significant is the cost of lost production when the machine is down Every 1% improvement in equipment availability or productivity improves the company profits by up to 3.5%

4. TPCM Supporting World Class Standards Objective Function for Maximising Company profits 4 The Annual Production for a given investment is a suitable objective function Availability is essential for maintaining production

5. TPCM Supporting World Class Standards Total Annual Production 5 Is this total annual production ? Tonnes/Hour x Total Hours More realistic prediction is Tonnes/Hour x (Total Hours-Downtime) Probably the following is more illuminating Tonnes/Hour x (Total Hours--Scheduled Downtime -Breakdown maintenance)

6. TPCM Supporting World Class Standards Total Hours of Possible Production 6

7. TPCM Supporting World Class Standards Subtract Planned Maintenance 7

8. TPCM Supporting World Class Standards Subtract Breakdowns 8 This is the time available for production. Obviously, you want to maximise this time. That is why the ratio of this time to the total time is a very important KPI.

9. TPCM Supporting World Class Standards Availability 9 A = THTotal Hours PMPlanned Maintenance BMBreakdown Maintenance TH – PM – BM TH

10. TPCM Supporting World Class Standards Availability 10 A = = Is also expressed in Terms of MTBF and MTTR as A = Operating Time Total Time TH – PM – BM TH MTBF MTBF + MTTR

11. TPCM Supporting World Class Standards Availability 11 A = = Is also expressed in Terms of MTBF and MTTR as A = Operating Time Total Time TH – PM – BM TH MTBF MTBF + MTTR This is a text book definition of AVAILABILITY

12. TPCM Supporting World Class Standards Maximise the Return to the Company 12 The aim for the company is to maximise the return from its productive assets. Let us keep it simple and express this as maximising the production through the year. To achieve this, (a)The machine availability must be high (b)The machine must be producing at a high rate when it is operating Maintenance plays a BIG part in this process

13. TPCM Supporting World Class Standards Maintenance 13 Maintenance must be considered in the context of asset utilisation Mining is an asset-rich industry Optimum utilisation of these assets and Man Power is the only way a company will reach its objectives and stay competitive This is a task for both production and maintenance engineers. Selecting the Right People for the Right Job is a crucial component to achieving optimum performance

14. TPCM Supporting World Class Standards Launching maintenance improvements 14 #1: Why improve maintenance? Why change? Identify the benefits, the business case, the fundamentally compelling reasons for improving maintenance—the sense of urgency. #2: What’s getting in the way of actually improving maintenance? Attitudes, work culture, environment, resources (people/money), skill shortages, training, myths and misunderstanding can stall improvements. (Determine the root causes of these barriers or specific failure modes of an improvement activity.)

15. TPCM Supporting World Class Standards Launching maintenance improvements (cont) 15 #3: How do we address the specific root causes of the barriers and re- focus on the compelling business case for improving maintenance? This is the launching pad for improving maintenance: what maintenance improvement activities to deploy, where and when, and how to measure the results.

16. TPCM Supporting World Class Standards Increasing “Tool Time” is one of the major objectives of this exercise: Increasing Tool Time is one of the key objectives of maintenance improvements and this is often lost in the cost cutting exercise with reduction of staff numbers? TPCM can provide trained semi-skilled operators to perform ALL of the cleaning tasks within a workshop and provide Improve the efficiencies of the trades people – Increase Tool Time Maintain the quality of cleaning prior to maintenance and repair work commencing Improved Moral Maintain the quality of maintenance A cleaner workshop creates a safer environment and promotes a safer work ethic 16

17. TPCM Supporting World Class Standards Having the Right People doing the Right Job will allow: 17 More efficient operation of workshop with scheduled equipment cleaned to a very high standard Less down time on equipment with more efficient scheduling of workshop and personnel Improved maintenance leads to extended asset life which leads to huge cost savings Scheduled maintenance can occur when planned, without interruption of costly breakdowns NDT testing is completed first time and as scheduled Tool time is increased for Fitters and other skilled trades people Other unskilled tasks can be completed by TPCM staff when not cleaning

18. TPCM Supporting World Class Standards Other Task completed by TPCM operators 18 Scheduled maintenance cleaning of earthmoving equipment Breakdown response cleaning so immediate repairs can commence Environmental clean-up work for breakdowns resulting in hydrocarbon spill incidents Workshop and wash-pad clean up Hydrocarbon clean up at bulk fuel facilities etc. Mine-site clean-up work Mine-site equipment and vehicle transfer for environmental purposes Cab/vehicle detailing Service exchange component cleaning prior to transport Other general duties normally performed by semi-skilled labour hire

19. TPCM Supporting World Class Standards Benefits 19 The Tangible benefits are: A cleaner and safer work place No capital outlay for expensive specialised truck and cleaning equipment No maintenance and repairs of the truck and cleaning equipment More Tool Time for Fitters and Trades people More efficient overall operation of the workshop which leads to less downtime of equipment and increased availability and huge cost savings Reliability engineering and labour optimisation increased leading to increase in MTBF and decrease in MTTR

20. TPCM Supporting World Class Standards Benefits 20 The Intangible benefits are: Improved cleanliness leads to encouraging higher standards of cleanliness Cleaner workshops are safer and promote a better safety attitude and culture for all workshop personnel Moral and work attitude are improved More efficient overall operation of mechanical workshop High quality inspection and maintenance leads to less breakdowns Flexible labour force to cope with fluctuations with work load demands Workshops, tooling and equipment are also cleaned and maintained well. Improved cleanliness leads to encouraging higher standards of cleanliness Cleaner workshops are safer and promote a better safety attitude and culture for all workshop personnel

21. TPCM Supporting World Class Standards Conclusion 21 The overall efficiency and productivity of the workshop is improved, scheduled maintenance is able to be completed on time in a safe, clean and environmentally friendly work environment. Workshop moral is improved and trades people and operators are happier and a better safety culture, moral and attitude is visible which translates to higher production, reduced downtime and huge savings and efficiencies.