1. “IMPROVE ALL THE TIME, SAFETY ALL THE WAY” AIMS for Excellence Event 2011

2. “improve all the time, safety all the way” 2 Team Profile Project Leader : Team Member : Area Head M. Nazaruddin Flavius Fariodi Facilitator: Miftahudin Mech. Engineer Kayat Mech. Engineer Indra Z. Supervisor Sujoko S. Mech. Technician Firmansyah M. Instrument Tech. Nurul Azmi Maint. Planner Alvi H.

3. “improve all the time, safety all the way” 3 Step 1 PLAN What are the improvements opportunity in your area ? What is the priority for improvement ? Show the data ! Project Description (Background) : Based on record, expending budget for maintenance side had already too high or inefficient, from year to year our budget requirement for equipment become larger and larger. Therefore the main purpose of this project is to reduce maintenance cost itself. What can we reduce ? Basically WY equipment consist of three main equipment, which are log handling, chip handling and bark handling. The advantages by choosing bark handling project as follow : Bigger opportunity for improvement with more accurates data, knowledge and proportional scope of area as GT. On the other side, choose others will impact into invalid data because every cost on others handling will charge not only to one woodyard line but on all woodyard lines.

4. “improve all the time, safety all the way” 4 Step 1 PLAN What is the business impact of the project? What is your project plan ? Business Impact: Direct Saving Cost: USD 67,894.48 / yr Increase Production: Production Rate x Saving Time : 1280 ton / hr x 53.25 mins : 60 = 1136 ton (by reduce downtime)

5. “improve all the time, safety all the way” 5 Step 3 PLAN What are major drivers of improvement opportunity ? Show what they are! Please justify with graph or data! Analysis on Suspected Dominant Causes 1. OEM Bark Crusher spareparts price too costly Every year, this is estimation of our maintenance cost for buying spare-parts if we use original equipment manufacture. So what if we have knowledge, design and material to produce part that have advantages on cost, lifetime and lead time manufacturing ?

6. “improve all the time, safety all the way” 6 Step 3 PLAN What are major drivers of improvement opportunity ? Show what they are! Justify with graph or data 2. Inefficient Function of Equipment Speed switch have function to indicate rotary motion of equipment where they are attached. Based on this speed switch, we can indicate : 1.Tag No. roller where Motor failure / V-Belt failure 2.Chain Cut-Off from roller C 552 So what if there is no speed switch or even gearbox and motor in C551 & C553 ?

7. “improve all the time, safety all the way” 7 Step 3 PLAN What are major drivers of improvement opportunity ? Show what they are! Justify with graph or data 3. When bark roller is worn out, replacement price too high Price / Replacement : USD 6,988.24 Estimation Lifetime OEM : 4 Yrs Reff. PR 1000182924

8. “improve all the time, safety all the way” 8 Step 3 PLAN What are major drivers of improvement opportunity ? Show what they are! Justify with graph or data 5. Missing Cover chain / V-Belt; Curtain Not Complete Our equipment easy to be exposed, this causes a bad effect on the equipment itself. Various things that cause the equipment was exposed :  Dust on the platform  Curtain not complete  Missing cover for chain and V-Belt Cleaning frequency too seldom, not based on schedule Lifetime curtain approx. 1 month Forgot to reinstall cover after V-Belt replacement Missing CoverDust / Sliver / Chip on PlatformCurtain not Complete

9. “improve all the time, safety all the way” 9 Step 3 PLAN What are major drivers of improvement opportunity ? Show what they are! Justify with graph or data 6. Speed too fast; V-Belt worn out abnormally Cause of this situation : Actual diameter of pulley motor didn’t meet standard requirement, therefore output speed increase from 129.77 m/min to 147.46 m/min Effect of this situation : Plug-up risk increase (overload at chute and rechipper) V-belt, Bearing & Chain will be worn out faster Bark separation can‘t be done properly (bumping cond.)

10. “improve all the time, safety all the way” 10 Step 5 DO How is your implementation of measurable actions that address the root causes ? 1. Alternative source of vendor with acceptable quality Some of our OEM comes from METSO with delivery time around 2 months, and of course it follows with high price. The idea here is to find alternative source with shorter delivery time & acceptable quality. The result, there are several equipment that have alternative source. Estimated Saving Cost : $ 60,176.56 / yr

11. “improve all the time, safety all the way” 11 Step 5 DO How is your implementation of measurable actions that address the root causes ? 3. Fabricate non-drive roller to central W/S instead of buy OEM Engineering Drawing 3-323-M-1090 Notif. 10190308 MO. 4310157 Roller OEM MC. 163473 (USD 6,988.24) Raw material MC. 19893 (USD 1,571.38) Saving Cost : USD 6988.24 – (1571.38 / 2) USD 6,202.55 / replacement (lifetime : 4 yrs) 6,202.55 / 4 yrs = USD 1550.64 / yr Raw Material length : 6000 mm Roller length : 2126 mm * Approximately one raw material can be used for two rollers

12. “improve all the time, safety all the way” 12 Step 5 DO How is your implementation of measurable actions that address the root causes ? 4. Revised PM Check Form BeforeAfter Improvement : Frequency PM Check improve from weekly into daily Specific item to be checked from each equipment from 25 common items, into 18 special item

13. “improve all the time, safety all the way” 13 Step 5 DO How is your implementation of measurable actions that address the root causes ? 5.1. Propose New Cleaning Schedule BeforeAfter Before After

14. “improve all the time, safety all the way” 14 Step 5 DO How is your implementation of measurable actions that address the root causes ? BEFORE Woodyard #3-4 have allocated manpower 10 peoples for cleaning purposes. However there is no standardization for cleaning. Sometimes area is clean and another day is not. AFTER Propose 2 peoples for bark handling equipments Cleaning schedule every day Fill checklist form for standardization Propose New Form 5.1. Propose New Cleaning Schedule (cont.)

15. “improve all the time, safety all the way” 15 Step 5 DO How is your implementation of measurable actions that address the root causes ? 5.2. Reinstall all missing cover & curtain Reinstall all missing cover & curtain when shutdown opportunity.

16. “improve all the time, safety all the way” 16 Step 5 DO How is your implementation of measurable actions that address the root causes ? 5.2. Reinstall all missing cover & curtain (cont.) Reinstall all missing cover & curtain when shutdown opportunity. Before After

17. “improve all the time, safety all the way” 17 Step 5 DO How is your implementation of measurable actions that address the root causes ? 5.3. Install warning sign on public board and socialization on safety meeting