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

2. TPCM Supporting World Class Standards Current Economic Environment has created some challenges (directive from above) 2 $5 Billion cut to Global Mining Operation costs Maintain Production Targets of increased production of 25% by 2015 Reduce staff levels and streamline operations Increase efficiencies across the board

3. TPCM Supporting World Class Standards Objective - Maximising Company Profits Our Focus Efficiencies in Maintenance 3

4. TPCM Supporting World Class Standards Maintenance Costs 4 Maintenance costs can be a high as between 30-50% of the operating costs An annual bill can amount to hundreds of Millions of $$$ 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%

5. TPCM Supporting World Class Standards Budget Cuts Mean One Thing 5 Right People Right Job Work Smarter not Harder Doing More with Less

6. TPCM Supporting World Class Standards To achieve this requires 6 Assets Man Power Optimum utilisation

7. TPCM Supporting World Class Standards Technologies and processes have changed 7 Assets Man Power Optimum Utilisation O E M’s have changed the design of equipment to more modular components and easier access and replacement of components during maintenance Man power utilisation must be changed to create – “More Tool Time” More specialised skills are required to do more work with less time

8. TPCM Supporting World Class Standards Launching maintenance improvements - A new level of maturity is required - 8

9. TPCM Supporting World Class Standards Launching maintenance improvements 9 #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.)

10. TPCM Supporting World Class Standards Launching maintenance improvements (cont) 10 #3: How do we address the specific root causes of the road blocks 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.

11. TPCM Supporting World Class Standards11 More Tool Time for Fitters and other skilled trades people NDT testing is completed first time and as scheduled to meet AS4544-2005 standards 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 More efficient operation of workshop with scheduled equipment cleaned to a very high standard Improved maintenance leads to the prevention of a costly unplanned break downs Right People Right Job Work Smarter not Harder Increasing “Tool Time” by using TPCM

12. TPCM Supporting World Class Standards Additional Task completed by TPCM operators 12 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, wash-pad and Mine-site clean-up work Hydrocarbon clean up at bulk fuel facilities etc. Equipment Cab/vehicle detailing Service exchange component cleaning prior to transport Other general duties normally performed by semi-skilled labour hire Work Smarter not Harder Right People Right Job

13. TPCM Supporting World Class Standards13 The Tangible benefits are: 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 Flexible labour force to cope with fluctuations with work load demands Workshops, tooling and equipment are also cleaned and maintained for improved safety Reliability engineering and labour optimisation increased leading to increase in MTBF and decrease in MTTR Improved maintenance leads to the prevention of unplanned break downs Benefits

14. TPCM Supporting World Class Standards Benefits (cont) 14 More efficient overall operation of the workshop which leads to less downtime of equipment and increased availability and huge cost savings Improved cleanliness leads to encouraging higher standards of cleanliness and safety Higher standard of cleaning leads to higher quality inspection and maintenance leads to less breakdowns Moral and work attitude of fitters and operators are improved Cleaner workshops are safer and promote a better safety attitude and culture for all workshop personnel

15. TPCM Supporting World Class Standards Conclusion 15 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. More Tool Time = Less down time = more Production 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.