1. Total Operational Excellence 18/09/2015 1 Case Study: Improvement Projects Leila Sarcia- BI Specialist Rio Tinto Group- Energy Resources Aust.

2. Total Operational Excellence 18/09/2015 2 Learnings from the Case Study Gaining active involvement of C-level – sponsorship and ownership How to influence executive decisions and sponsorship with winning business case for continuous funding Selling and marketing your improvement projects/ programmes with maximum visibility of outcomes and financial gains Establishing and driving executive ownership – knowing how to keep management on board for sustainable change

3. Total Operational Excellence 18/09/2015 3 In 2009 up to present, Improvement projects initiative was rolled out, the metric is for each department to generate cost reduction projects that will impact the annual operating budget expense. It is a “cost” reduction initiative intended to reduce the plan operating expense. The cost savings will be achieved and recognized as a result of team’s efforts. Case Study: Improvement Projects

4. Total Operational Excellence 18/09/2015 Project Charter 4 Project charter contains the business case showing the benefits of the project. To be approved by the sponsor.

5. Total Operational Excellence 18/09/2015 5 Consolidated tracking and verification through project review. Periodic reporting on a monthly basis by each Manager to provide information on the progress. Each senior leaders are accountable to achieve the target. Each Manager to measure and report the achievement by the end of the year. Case Study: Improvement Projects

6. Total Operational Excellence 18/09/2015 6 Improvement Projects Process Flow Initial Review Periodic Reporting Closeout Review

7. Total Operational Excellence 18/09/2015 7 Review of each project charter to make sure that the target savings can be verified. To assess the quality of project to assure that the results can be measured and are aligned with the intent to reduce plan costs. All initial reviews will be completed by the end of Quarter1. Initial Review 1. Initial Review

8. Total Operational Excellence 18/09/2015 8 2. Periodic Reporting A periodic reporting on a monthly basis by each Manager to provide information on the progress. A project tracker will be maintain at a department level and consolidated at the business level. Tracker will be updated by each department every end of the month. Periodic Reporting

9. Total Operational Excellence 18/09/2015 9 Tracking Tools

10. Total Operational Excellence 18/09/2015 PlannedForecastActual TOTAL (millions) $5.23$8.28$5.25 2012 Cost Savings Metric Updated and reported monthly

11. Total Operational Excellence 18/09/2015 11 3. Closeout Review A final review will take place to determine whether your targeted savings were realized based upon the agreed measurement established in the initial meeting. All reviews will be scheduled by the end of November of every year. All closure reviews will be completed by the end of January of the following year. Closeout Review

12. Total Operational Excellence 18/09/2015 12 Cost Savings (2009-2012) 2009201020112012 $5M $3.5M $13M$8.3M

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21. Total Operational Excellence 18/09/2015 21 Thank You! The success of Improvement projects?................................................. Striving for Operational excellence.