1. OPTIMISING SHUTDOWNS CRITICAL MACHINES SPARE PARTS MANAGEMENT RISK MANAGEMENT

6. Critical Machines Spare Parts Management 2001 Started early (20 months out) Technical Scope decided and agreed Project commencement in Germany with MAN Turbo, Orica Engineer & Independent Inspector Schedule agreed, ITP’s agreed (including witness & hold points) Regular Inspections High Speed Balance - Orica Engineer present + (Low Speed Check Balance) Specially Designed Transport Container utilised Transported to Australia Checked Low Speed Balance (Failed)

7. Critical Machines Spare Parts Management 2001 Sent back to Germany High Speed Balance again + Low Speed Check Balance Adjustments made Transported back to Australia Checked Low Speed Balance (Failed again) What was going wrong?? Out of time! Lost $75k & 4 months Low Speed Adjustment in Australia Installed in compressor Running very well

17. Critical Machines Spare Parts Management 2003

18. Started early (20 months out) Technical Scope decided and agreed (2 new wheels) Project commencement in Germany with MAN Turbo, Orica Engineer & Independent Inspector Schedule agreed, ITP’s agreed (including witness & hold points) Regular Inspections High Speed Balance - Orica Engineer present + (Low Speed Check Balance) Specially Designed Transport Container utilised Transported to Australia Checked Low Speed Balance (Passed)

19. Risk Management Failures (like this example) occurred in 2001 KI ($35m) ongoing loss ($1m June 2003) & 2002 GI ($35m) ongoing loss ($5m and counting) We were not planning to succeed We needed a more rigorous approach to risk assessment and posing of potential failure scenarios

20. Risk Management Was this a failure of individuals to act correctly. NO Was it a failure in the execution of the Shutdown. NO There was an imbalance in the technical focus when compared to execution focus. How did this arise?

21. Risk Management Failure was due to downsizing of business, losing technical expertise How to overcome??? Developed a comprehensive risk assessment tool (utilise AS 4360 + consultant) Training presentation created

22. Risk Management First use in the 2003 Shutdown ($5m) Extra time cost ($150,000) Extra contingency cost ($200,000) Was it beneficial. YES Contingencies were in place for all significant technical risks

23. Risk Management Only 1 technical surprise, and planned contingences absorbed the work load The shutdown result, on time, under budget, no recordable injuries, plant producing at record rates Less stressed people

24. Risk Management This process is now being rolled out to significant every day events and is delivering even better results

25. Think Brainstorm List potential problems or “hazards”

26. Hazards What could go wrong??? Fragile visor breaks Big crack found Test gear fails NDT operator sick

27. Causes What would cause a hazard to occur?? Hose pinched Hose leaks Compressor stops

28. Consequences What are the consequences??? SHE Delay Cost

29. Barriers What is in place to stop a hazard occurring??? Soft Barriers Signs Procedures Hard Barriers Guards Physical checks

30. Risk Consequence rating Likelihood rating Risk Score Are extra barriers required??? Toughened visors?? Armoured air hose?? Backup power supply??

52. Risk Management