01 The Operating Model Implementation at Central Workshop KUMBA IRON ORE Sishen Mine
02 Central Workshop functions Purpose In-house Repairs and Manufacturing of engineering parts, components, assemblies and steel structures to reduce dependency on service providers, and consequently increasing savings for the business. Functions • Repair/rebuild of mechanical, electrical and Hydraulic RECO items. • Fabricate and Manufacture steel structures, components & parts. • Re-Engineering/Modifying of components. • Support shutdowns - assemblies, changeouts. • Support Breakdowns (quick turn around times). Workshops Platework & Fabrication Fabricate & Manufacture steel structures e.g. chutes, trolleys, bumpers, etc. Machine Manufacture light and heavy duty machine parts e.g. shafts, pulleys, line boring, etc. CNC Precision and repetition work with small tolerances e.g. shafts, discs, cylinders, nuts, wheels etc. Mechanical Reconditioning Assemble, recondition & test mechanical equipment e.g. gearboxes, magsep, pumps etc. Hydraulic Reconditioning Assemble, recondition & test hydraulic equipment e.g. cylinders, power packs, pumps, poppets, etc. Electrical Reconditioning Assemble, recondition & test electrical motors , alternators, wheel motors, etc.
03 Operating Model implementation history Close Out Critical Issue Resolution Site Readiness Project Set-up Role Holder Training Detailed Training Stabilisation Gap Analysis GO LIVE Configuration Workshop 31 May 2023 July 2018 December 2018 February 2019 March 2022 April 2022 – April 2023 September 2022 – February 2023 December 2023 6 7 8 9 10 1 2 3 4 5 Planned work is than unplanned work 70% Safer Of environmental discharges are a result of the unplanned stoppages of in-service equipment More than 60% Planned work is than unplanned work 30% more productive Overall planned work is than unplanned work 20% lower in cost
04 Message from Section Manager, Reconditioning, Fabrication & Refurbishment Lorraine Mphekoane Section Manager, Reconditioning, Fabrication & Refurbishment What an amazing and exciting opportunity it is that the Operating Model is rolled out at Central Workshop. Central Workshop plays a fundamental support role to the plant and HME sections by manufacturing and repairing critical spare parts and assemblies in-house. Ensuring proper planning, scheduling, and execution of the right work at the right time and in the right way, means we can deliver to our clients the best quality work, on time, as and when required, and importantly, safely. The implementation of Operating Model has been a challenging yet rewarding journey for the Central Workshop team. With continuous feedback, we have seen a significant increase in our work management measures by more than 35% increase in 5 months. The future is only bright. As we stabilise with the Operating Model, we hope to further improve our spares management, lead times, quality measures, and most importantly decrease spent cost on repairs. Central Workshop enables and supports Sishen vision and the Operating Model in turn supports reliable execution and integration in the value chain.
05 Why are we implementing the Operating Model? Right work. Right time. Right way. Effective and efficient way to optimise our business We all have very specific roles to play in achieving our business performance targets. But we are not always aware of how the things we do impact on this. If work is appropriately planned, scheduled and resourced we will start to have the clarity we need. To build performance in a simple and continuous way; establish stability, build a foundation for capability to realise and release potential to achieve planned work more consistent, at low cost. Context Where does what we do fit in with other tasks? The Operating Model is designed to ensure a level of detail that matters and Central Workshop task assignments we will have: Time When the task must be performed; to approve, plan, schedule and resource it in time? Resources What do we need to fulfill the task? Quality What the acceptable standards and methods are? Quantity What the output of our task should be? Purpose Why our task is unique, why it exists?
06 Why Operating Model at Central Workshop? Operating Model Next steps Why implement Operating Model at Sishen Central Workshop? Value: • Effective use of own assets • Cost avoidance/savings • Reliable turnaround times (equipment downtimes) Why Operating Model? To serve as the foundation for execution and providing a clear guide for leadership team, line managers and operational teams. Purpose: To manage the interaction between Central Workshop and the End-users in the different areas for all day-today activities, projects and shutdowns. After the Go Live, next step is to stabilise and sustain the Operating Model. The journey of the Operating Model implementation at the Central Workshop does not end with Go Live but continues. Thus far, there have already been improvements observed due to better focused planning through the introduction of the scheduler roles and resource coordinators. These roles have removed the previous scheduling function from the planners (adding scheduler to focus on scheduling) and monitoring of spares availability from the artisans and supervisors (to resource coordinators). These changes created enough time and focus for supervisors to focus on leading teams and planners planning ahead with focus on quality. This can be observed with improved stock replenishment at the warehouses and customer satisfaction. The scheduler role focuses on looking ahead in the schedule and allocating resources for work to be completed by the required date to replenish stock with quality. The supervisors and discipline planning office roles and responsibilities have been clarified and what remains is to stabilise and sustain the Operating Model. Objectives: To ensure - • Safety and quality of work • Reduction in external spend • Efficient scoping, planning and scheduling of jobs • Improve schedule attainment • Improved turnaround time/ Lead time
07 Messages from the Supervisor team Zandile Sithole Quality Inspector: Reconditioning, Refabricating & Refurbishment The Operating Model will help us measure our performance and track the improvement of the quality of our work. Tshepo Mooki Supervisor, CNC Reconditioning The Operating Model seems to be an amazing tool that will help us at Central Workshop to execute tasks that are planned properly and its measures will keep our focus in the right way, we will be performing tasks that are approved, planned and scheduled accordingly. No favoritism. Marvin van Wyk Supervisor: Machine Reconditioning Operating Model is a tool to assist us in improving our performance in resourcing, scheduling and planning to execute our task on time and safer at all times. Kagiso Lekhoe Supervisor: Platework Fabrication The Operating Model simplified way of working to all stakeholders, and ensure we deploy the required resources accordingly and planning ahead. Ryno Assegaai Supervisor (acting): Hydraulic Reconditioning Operating Model has improved our team at Central Workshop’s self discipline in committing to planned and scheduled work and executing it in that certain time frame. Welile Bozwana Supervisor: Electro Technical The Operating Model is a tool that helps us to do the right work, at the right time in a right way in a safe way to achieve excellent results. Sarel von Wielligh Supervisor: Mechanical Reconditioning The Operating Model will allow the inclusion of plant schedule integration into the central workshop schedule. It will encourage discipline execution of work. Doing it the right way, the first time. It can ensure clear roles and responsibilities.
08 The Operating Model: An integral part of the Sishen Business Plan (BP) Our vision: To create an inclusive and productive workplace, where everybody goes home safe and well, every day. SISHEN MINE VISION In clusive, Safe and Productiv e Zero LTI’s and HPI’s 26.0 Mt Saleable tonnes R549/t 2023 unit cost [OFFICIAL] Pulling everything together, by connecting the dots…
09 What is manufactured or reconditioned at Central Workshop
Central Workshop basic design themes for the Operating Model 1 Provide clarity • Clarity of purpose • Clarity of theory • Clarity of roles and accountability 2 Stability and predictability • Surprises happen and destroy predictions • Surprises arise from unanticipated conditions and actions • The major sources include: - Deviations from approved schedule - Failure to escalate risks, support for more resources and or time - Major service work 3 Reduced variation • All processes have variation - deal with it, don’t hide it • Variation at the output of a process is produced by variation at the input or within a process • Variation means performance below the potential 10
Control limit Control limit Mean Control limit Control limit Mean Unstable process Stable process Control limit Control limit Mean I know exactly what is expected of me. No more hero and zero days! 11
12 Central Workshop Department Organogram 131Total number of employees (98 direct reports) LB Mphekoane Section Manager 2.13.3.1 H Holtzhausen Section Manager Discipline Planning 1 x Scheduler 3 x Planners 5 x Resource 4 x AOM Clerks 3 x Time Clerks 8 x Fitter & Turners 5 x MO 1 x Programmer 8 x Fitter & Turners 2 x MO 4 x Electricians 4 x MO 10 x Boilermakers 6 x Welders 8 X MO 13 x Fitter & Turners (light & heavy duty) 5 x MO 9 x Fitters 8 x MO S Manwatha Discipline Planning Advisor Vacant Hydraulic Reconditioning 2.9.2 TI Mooki CNC 2.9.2 W Bozwana Electrical Reconditioning 2.9.2 KC Lekhoe Platework & Fabrication 2.9.2 MS Van Wyk Machine 2.9.2 SL Von Wielligh Mechanical Reconditioning 2.9.2 B Mtshengu AS&R Central Services 2.13.1 16 Cleaners (1 Service Provider) 17 Discipline Planning 32 Maintenance operators (artisan assistants) 59 Artisans 6 Supervisors (2.9.2) 1 Engineer (2.13.3.1)
13 What did the Operating Model change for the better at Central Workshop? Challenges Better communication due to clarifying and balancing of role responsibilities. e.g. discipline planning office set-up and staffing. Intergration with the mine schedule (weekly activities, projects and planned shutdowns). Improved schedule completion. More focus on stock zero (warehouse replenishments). Eliminated backlog. Reduced amount of ageing orders. Customer satisfaction – to be achieved through improved lead time and quality of work. Resources (spares and people) – Resource coordinators have been put in place, supervisors are no longer tracking spares but focusing on leading teams. Quality of work – A quality inspector has been appointed, focused planning has started.
14 Central Workshop Discipline Planning Team Discipline Planning Leaders Resource Coordinators Monique Maart Haldane van der Bank Clerks Elize Badenhorst Elsa Smith Keleabetswe Both Wilma Nel Lyndon Kruger Beavon Jobs Shumani Manwatha (Discipline Planning & Scheduling Advisor) Boineelo Andriaan Alta Agenbag Herman Holtzhausen (Section Manager Discipline Planning) Resource Coordinators Clerk
15 AOM Clerks Erica Fortuin Thozamile Tappa Thulaganyo Masiane Scheduler Nancy Dihemo Planners Ranchad Joseph Eugene Fischer Yul Witbooi VACANT
16 The Operating Model Implementation at Sishen Mine Central Workshop Operating Model Right Work. Right Time. Right Way.