kpc_productivity improvement 2014

8/10/2019 KPC_Productivity Improvement 2014

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Integrated Improvement Initiatives and

Strategic decisions during the challenging

situation of low coal prices

Presented by : Gede Ngurah Ambara*Mgr Business Performance ImprovementKPC

Novotel Hotel Balikpapan, Indonesia

2-3 September 2014

*e-mail : [email protected] : +62 (549) 52 1501

Kalimantan Coal Market

Overview of PT Kaltim Prima Coal Operation Challenging time : main driving factors for changes Stretching work-load (production) to reduce cost Improving Overall Effectiveness of Equipment Improve operators and mechanic discipline Sustainability of improvement initiatives Future Challenge of continuous improvement

The Outline Summary
mailto:[email protected]:[email protected]


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PT KaltimPrimaCoalVision

Indonesias leading coal producer for global needs

delivering optimum values to all stakeholders

Missions

Fostering a culture that considers health, safety

and environment in everything we do, maintaining

good corporate governance and promoting good

corporate citizenship, providing an environment

for learning to achieve excellence and improvelivelihood, Optimizing value for all stakeholders,

and carrying out best practice in management

and operations to deliver consistent high quality

product and performance


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Location and Project Summary


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Sangatta Coal Deposit

Sangatta coal deposit occurrs in Balikpapan formation, withi

Kutai Basin during Miocene age : located 20 km from the coast

uncontaminated organic deposits with low ash and sulphur. The

deposit was subjected by a geological intrusion called Pinang

Dome. These pressures and temperature elevated the coal t

higher rank than its age would normally suggest.

Coal occurs in nine principal seams to the west of the Pinang Dome with thicknesses vary from

0.5 to 15 meters, with most in the range 2.4 to 6.5 meters. Seam dips normally varies between

3 and 20. The overburden consist of incompetent mudstones, siltstones and sandstones.


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Exploration , Drilling & Geotechnical Monitoring


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Soil Handling, Drill Blast, OB Removal & Coal Mining


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KPC Fleets and Production

Mobile-Heavy Equipment are 974 machines. KPC Daily production:

Explosives usage : 487 tonnes AN , Fuel consumption : 1,200,000 litres ,

Overburden removal : 1,450,000 bcm , Coal mined : 135,000 tonnes

Trucks Units CapacityLiebherr T282 31 360 tonnes

Hitachi EH 4500/5000 129 282 tonnes

Caterpillar 789 94 185 tonnes


Komatsu HD785 52 100 tonnes


Shovels Units Capacity

Liebherr R9800 3 45 m3

Liebherr 996 18 32 to 33 m3

Hitachi EX3600 11 23 to 24 m3

Hitachi EX 3500 6 22 m3

Hitachi EX 2500 4 15 16 m3

Liebherr 984C 4 5 8 m3


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CPP Stockpiles

8 stock piles (Prima.Pinang & Melawan Brand)Total capacity > 300 kt


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13 Km Dual OLC with speed 8.68 m/scapacity Max 9,000 tonnes per hour

Overland Conveyor


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Coal Transport & Loading Facilities (Sangatta)

KPC has complete facilities to provide full coal mining and transportation solutions

Coal Transportationto Loading Port

13 km Overland Conveyor

Average capacity : 4,200 tph Coal delivered in approximately

25 minutes

Port Stockpile

Total Stockpile capacity of 2.5 Mt

Stacker capacity of 4,200 tph

Reclaim capacity of 7,500

9,000 tph

Ship Loading

Private International Port

2 km Jetty 17.2 m draft deep water berth at low tide

Load vessels up to 220,000 dwt.

Loading rate of 7,500 tph with one (1) legand up to 9,000 tph for 2 ship loading


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Port Stockpile

7,500 tph for 1 Ship Loader

9,000 tph for 2 Ship Loaders

The facility can handle cape SizeShip (vessel) up to 200 kt with

approx 20-25 hours


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Coal Trans-shipment Facilities

Tanjung Bara Barge Loading

New 1000 tph facility commissioned

Barges loaded to vessel at Tanjung Baraanchorage

1 km sailing distance from barge to vessel

Lubuk Tutung Barge Loading

2000 tph facility (1000 tph ROM crushing)

Barges loaded to vessel at Lubuk Tutung

anchorage or at FTS

Floating Transfer Station (FTS)

1000 tph floating loading facility

Load up to Capesize vessels

Stationed at Lubuk Tutung (Bengalon)

1


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1

Challenging time : main driving factors for changes

Recent Years and Current Situation

KPC has been smoothly moved from 8 to 12 hours/shift roster toward end of year 2012. By doing this KPChas hindered the requirement to get additional man-power requirement of more than 800 operators.Meanwhile the expansion project continues, KPC and the other coal mined companies has been heavilyimpacted by continual decrease of coal price which due to prolonged economic crisis hit Europe, andslowing down of China and India economic which limits their coal import demand, and Excess coal supplyfrom North America. During one year by the end of year 2013, KPC Coal Average Selling Price has droppedmore than 12 USD.

The uncertainty of when the coal price will back to normal continues even until nowdays, with main workforce of 5000 employees, and in total of 23,000 including contractors, KPC faced dilemmatic situation,rather than doing rationalization of employees, KPC has started to implement several strategic decisionssome of the main ones are :

Substantially reduce the production by standing down 10 big diggers and more than hundreds of trucks. Started a new project of Improvement synergizing two main divisions : mining operation division (MOD)

and Mining Support Division (MSD) to focus on increasing the overall effectiveness of equipment (OEE) Deliberately sending the excess operators to a semi-military training to improve their discipline, moral

and work attitudes Develop additional work forces to focus on sustaining improvement initiatives at MOD and MSD.


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1

Reduce Production: parking up some of the main equipment

Deliberately Parked-up equipment (reducing work-load)

Year 2012 has been the peak of overburden removal production of KPC Pits, after that KPC has deliberatelyreduce the overburden production by means of parking-up about 10 big diggers and hundred of trucks.

But in the same time the coal mined has been increasing, by means of reducing the strip ratio. The overallstrip ratio (SR) in year 2012 was 11.7, subsequently reducing to 9.8 by the end of year 2014. Theoverburden cost removal constitute about 80% of total mining cost, by doing this strategy, KPC has beensignificantly lowering the unit cost of production ($/tonnes).

This parking up strategy has been subsequently implemented since early days of year 2013 and continuesuntil current time. To support the smoothness of this strategy, KPC management are ensuring that :A specific guide-lines/procedures of Park-up are being closely implemented and monitoredProcedure to re-activate any machine to be followed up carefullyA Roster/schedule of parking-up the machines is updated regularly to suit to recent/current dynamicsituation of coal mining activities, i.e : a significant change on overburden cycle-time which affect toincreasing number of waiting on trucks or trucks queue times.Integrate the park-up and re-activate the fleet with other procedures which may be impacted to, forinstances the SOP of Match Factor which relate to Fuel Efficiency project


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1

Reduce Production: parking up some of the main equipment


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1

Liebherr T282360 T = 32 Units

New Project : Improving Overall Effectiveness of Equipment (OEE)

Improving Overall Effectiveness of Equipment (OEE)

Through careful study, and benchmarking to similar companies, initiated on early year 2012 and with the

help with external consultant, it was found that KPC assets have not yet sweated , the overall effectivenessof equipment which were overall availability, usage and utilization were still relatively low compared toworld best practice. Further study also revealed that within digger-truck systems, the diggers capacitieswere in excess, while the trucks performances were the bottle-neck which needed to be enhanced .

Since mid of year 2012, a new project called Membara Project was established. This project aimed atimproving overall effectiveness of equipment (OEE) particularly it was first focusing on improving the OEEof overburden trucks. During first pass off Membara Project, the improvement initiatives to improve the

OEE were focused at two main division i.e. : Mining Operation Division (MOD) which has work force over3000 personnel, and Mining Support Division which maintain the mining fleet which supported by about1100 personnel. In MOD, Membara Project was focusing at improving OB trucks utilization on the biggestpit at that time, i.e. : Pit Bintang, while at MSD the focus was how to improve the physical availability of OBtrucks. At the end of year 2012, in MSD, after completing the project on OB trucks, the initiatives were thenrolled out to Improving Big Diggers and Support Equipment (dozer, grader) availability.

The first pass of Membara Project completed on mid of 2013, which then continued to 2ndpass which focus

on Cycle Time Project and Improvement on Drill and Blast.

The challenge for Membara Projects which are typical for other improvement initiatives is how to make allimprovement initiatives sustained not only during project but keep continues in the future until the life ofmine.


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Frame-work of Membara Project

Mindsetsand

capabilities(MC)

Managementinfrastructure

(MI)

Managementinfrastructure maturity

"The formal structures, processes and systems

through which human and organizational

resources are managed and optimized to

achieve shared goals"

Performance management Organization design Continuous improvement infrastructure

Effective review mechanisms

Technical systems maturity

"The most efficient way

physical assets andresources are configured and

optimized to create value

and minimize losses"

OEE improvement Reducing lost time of

un-critical activities

Improving PhysicalAvailability (PA) of

trucks

Fleet dispatch Truck cycle time

management

Maintenance planningand execution

Mindsets and capabilitiesmaturity

"The way people think, feel and conduct themselves in the

workplace, both individually and collectively

Management training Frontline engagement Effective feedback

Membara framework focuses onimplementing new initiatives andensuring their sustainability, toachieve its goal

Notes: Impr oving OEE in

previous term is relat ively

s imi lar to improv ing overal l

uti l i zation of the equipm ent, i.e.

Util ization (KPC) = PA x Usage

Th G l f OEE I t


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The Goal of OEE Improvement

A goal of attaining 63% OEEwith a stretch plan of 69%

OEE

All ops delays

System delays

Noncriticaldelays

Critical delays

Availabletime

BM2

PM1

Total

85

65

Current OEE Potential future

89

71

Availability

Utilization

57 63

Availability%

Utilization%

OEE%

Improvements

Improve availabilityfrom 85% to 89%

Improve MTTR Improve MTBF

Defectelimination

Bettercomunicationwith MOD

Improve utilizationfrom 65% to 71%

Improved shiftchange

Reduce nooperator

Reduce mealand pray delays Reduce time for

recovery afterrains

Improve haulroads

Improved availability

and efficiency resulting in

Improved OEE of 63%(stretch target 69%)

MC

MI

M b P j t i t t MOD MSD


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Membara Project improvement process at MOD-MSD

Involving many line teams

and create official SOP

documents; these can

change after better insight

from implementation

Intensive Field Observationand involving line teams in

refining concept of initiatives

and lock changes by

creating official SOPs and

Change Managementdocuments

Also involving all neccesarystake holders : MOD-MSDstaff, Dispatch, Contractors,and OEMs

Multiple iterations on the SOPdocument were conductedwith all stakeholders to

ensure buy-in

Improving OB Truck OEE : the Initiatives development


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Improving OB Truck OEE : the Initiatives development

After multiple idea

generation session in

MSD, MOD and dispatch

a KPC Membara

operating model evolved

and new initiatives weredefined

Category

Manag-ement

Infrastruct

ure

Robust performance management system introduced that includes appropriate incentive systems andperformance dialogues

Refined organization structure that is aligned towards goal of the organization

Setup a Membara PMO team that will drive continuous improvement at KPC

Mindset &capabilities

Frontline engagement program to create awareness and generate momentum

Capability building curriculum targeted for Membara change managers and initiative champions

Specific technical training programs for operators, supervisors and mechanics

Reduced repair diagnostics time: Clear SOP on truck repair for operators Introduce new diagnosticians team Contractor management

Reduced repair preparation time: Portable in-car toolbox Mini ware-houses in pits In-pit hose fabricator

Reduced repair complete confirmation time

Reduced repair time: SMED for priority ideas

Defect elimination initiatives

New equipment strategy

Reduced repair response time: Staggered shifts for MSD

Improved workmanship

Technicalsystems

Improved hauling: Improved road maintenance Improved road construction and design

Improved loading: Refined loading SOPs and methods Defining optimal loading factors Matching shovel to truck body sizes

Improved dumping practices: Refine dumping SOPs

Improved shift change practices Newly defined shift change process and SOP

Reduction in time for meal and pray

Improved recovery from stops practices

Optimal interfaces between departments: MOD - MSD

Improve dispatch process and equipmentconfiguration

Improve end to end mine planning andexecution process

Make long term strategic mine planassumptions robust

Planning and dispatch (Mineplanning and Mine optimiza-tion)

Equipment availability (MSD- Haul trucks) Equipment utilization (MOD)A CB

Improving Utilization of MOD OB trucks


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Improving Utilization of MOD OB trucks

Part of OB Trucks OEE Improvement at Mining Operation Division Areas is how to improve the utilizationof these Trucks. During Membara Projects and continues to recent time and to be sustained in the future,

there are 4 main areas focus of improving the utilization, that are :1.Shift Change process2.Meal and Pray Delay3.Wet Road Delays (Quick Start-up /Recovery after Rain : QSuar)4.No Operator Delay5.Improving Hauling (to reduce cycle time)These four main improvement initiatives at Mining Operation Division within Membara Project are knownas Ready MOD Project

Meal Pray

Shift Change

No Operator

Recovery from rain

Improve Hauling

Improving Shift Change Process


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Improving Shift Change Process

ImpactSolutionSituation

Baseline

Mar 2013

High shift change delaypre-implementation due

to: Operators take longtime in muster area

Operators take longto handover at shiftchange area

4.2

J

11.9

HT

17.4

BIG

6.9

1. Minimize operator time in muster area Operators spend minimal time in

muster area due to fingerprinting andupfront unit assignment

2. Clear truck assignment

Unit status and operator assignmentupdated before start of shift anddisplayed in muster area

3. Increase supervisor control in musterarea and shift change area

Supervisors are assigned to monitormuster area and shift change area

Clear responsibility to ensure operatorsget into trucks quickly

4. Hot handovers

Hot handover procedure implementedfor safe and efficient hand-over oftrucks from one operator to the next

initiatives implemented across all 3 pits Time lost reduced by 50% - 80%, equals to

0.25% to 1% of OEE

4.64.2

JHT

2.5

BIG

3.4

Initiatives Prioritization matrix

f Schedule PPE distribution

h Set up board to display truck location andoperator assignment in the muster area

i clear guidelines & target time for equip. handover

c Install siren in the muster area for efficiently

b Re-inforce supervisor authority

j Assign supervisor during shift change

a Remove benches from the muster area

d Effective safety briefing in manhaul/ muster area

e Develop & follow stdard format for safety briefing

g Clear assignment of transport for each panel

k Build shift change bays to accommodate trucks

l Build additional shift change area close to panels

m Road patrol to ensure trucks not slow down

Im-

pact

Ease of implementation

a

d

e

b ch

i j

f

m

g

kl


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Shift Change : Remove Benches& Reinforce Supervisors Authority

Muster area processes

Benches in the muster area have been removedso that the operators moved quickly Supervisor uniform and equipment reflects theauthority and role he should have

Yellow PPE and different colored safety helmetmark the supervisor as different and gives himadditional authority responsibility (e.g., army rank)

Communication device is a must in order to beable to provide real time answers to problems

Light lamp allows supervisor to direct vehiclesinto the shift change area during the night

PPE distribution is scheduled once a fortnight orevery week in order to prevent inefficient process

Efficient attendance recording using fingerprint(applies only in selected pits)

Removing benches and reinforcing supervisors authority help expediting process in muster area

Improving Meal Pray Process


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Improving Meal Pray Process

Impact

33.3

PitJHT

46.2

35.9

10.3

BIGPitJ

37.3

26.2

11.0

HT

22.9

14.4

8.5

BIG

27.1

17.7

9.4

1. Staggered Meal and Praybreaks

Optimal schedule withstaggered breaks with eachback-up operator covering

more trucks than previously

2. Shadow crew enforcement

Shadow crew is enforcedworking according to shift

and new working hours from6 to 6 to improve shift change

3. Back-up allocation and

visibility

Operators from breakdownunits utilized as back-ups and

allocated optimally

4. Revised roles and responsi-bilities

Specially created pondoksupervisors manage back-up

process in the pondoksupported by dispatch

5. Hot handovers

Hot handover procedureimplemented for safe and

efficient handover of trucksfrom one operator to the next

SolutionSituation

Apr-Jun1 Sep- Feb2

High meal pray delayobserved pre-

implementation due tounregulated break time and

poor back-up allocation

33.3

14.2

PitJ4

8.7

5.5

HT3

13.9

8.8

5.1

BIG

13.7

7.9

5.8

Apr 2013

Pray

Meal

Meal Pray Initiative wasimplemented across all 3pits in MarApr 2013

Good impact from theinitiative has been seenwith the delay reduced tobelow budget figures inall 3 pits

H:\Personal\Harold Ong\Indonesia\PGN\IPO\Legal DD Presentation.ppt - May 20 2003 - 23:24 /2

Staggered Meal pray using a floating back up system


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Staggered Meal pray using a floating back-up system

Key design decisions in staggering meal and pray breaks

Principles Benefits

5-6 configuration canmeet the constraint on

spread of break variation possible to implement

this configuration for alltrucks at a 3.72 manningratio

Details of implementation

1 back-up operatordeployed for every 5

trucks for maximumcoverage at availablemanning ratio withinacceptable break window

3Break

schedule

Saving in time lost due topray delay. Forexample,in the day shift,in addition to meal, the 2breaks cover Dzuhur andAshar prayers

Cycle time loss due toadditional travel topondok are reduced

Optimal schedule withstaggered breaks areimplemented

2 x 30 mins duringday shift

1 x 1 hr during thenight shift

Savingcycle time due toreduction in handovers

Equal working hours forall operators

All operators man oneequipment after the otheras back-ups instead of

using designated back-up operators

Floatingback-up

system

2

5:6

configura-tion

1

New pondok supervisor roles have beencreated to provide additional manpowerfor managing Meal pray process

H:\Personal\Harold Ong\Indonesia\PGN\IPO\Legal DD Presentation.ppt - May 20 2003 - 23:24 /2

Staggered Meal pray (continue)


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Advantages of fixed back-up system

Advantages of floating back-up systemProblem of operatorsrefusing to man trucks inpoor condition can be

avoided

Complexity of kimpermanagement can be

reduced by designating

mutli-kimpered operatorsas back-up

Easy to implement as itsclose to current practice

Feeling of equipmentownership by primaryoperators, potentiallyreducing maintenance

issues

Elimination of cycle timeloss due to back-ups

returning after each breakslot to pondok (~ 5

mins/truck)

Potential opportunity ofidentifying operators whodont maintain trucks in

good condition as theycan be reported by others

Staggered Meal pray (continue)

Due to the saving incycle time, floatingsystem for back-upsis preferred over thefixed system

Meal Pray Delay : min/avail.unit/shift

Improving Physical Availability component initiatives


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Improving Physical Availability component initiatives

Diagnostics time

Repair time

Confirmationtime

Response time

Preparation time

Planningimprovements

Opportunitymaintenance

Equipmentstrategy

IncreaseMTBF

IncreasePhysical

Availabilityof Trucks

ReduceMTTR

Focus area Components

Defectelimination

1

2

1a

1b

1c

1d

1e

2a

2b

2c

2d

9 areas of focus forImproving Physical

Availability of OBTrucks

We can break down

Physical Availabilityinto 9 components

To ensurecomprehensiveness,we should generateinitiatives around allthese components

PA = 1(MTTR/MTBF)

Reduce Response Time (Improve MTTR of OB Trucks)


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Reduce Response Time (Improve MTTR of OB Trucks)

Ideas implemented to reduce staff

unproductivity during shiftchangeover

After, we have reduced this unproductivetime by up to 25%

New shift change processBefore, mechanics dont work for a

full 65 minutes after shift change

Total 65

Prayer 24

PPE preparation 5

Other discussions 6

Discussion andjob distribution

7

Daily PA update 2

Fatigue Control 2

Safety talk 5

Travel time fromworkshop 14

44

5

Total

Discussion andjob distribution

2PPE preparation

Daily PA update 2

Fatigue Control 2

Safety Talk 4

Prayer 15

Travel time fromworkshop

14

Al l d iscussions done outdoors,

reducing unn ecessary activi t ies

(remo val of s hoes, irrelevant

d iscussions)

21 mins reduction inmechanics

unproductivity

Staggered

praying from

the start

Improve Shift Change and no labor-mechanic available


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p o e S t C a ge a d o abo ec a c a a ab e

Prayer rooms set up at Maintenance Inpit Bases toreduce time needed to start-up during over shift period

Up to 15minutes iswasted every

beginning ofshift due topraying inbatches

Small prayerrooms arebottleneckfor fasterstart-up time

Prayer rooms are ready and in use

Total of 2 prayer rooms areprepared: at In-Pit Maintenancebases

New SOP for truck repair location has significantlyreduced no labour available category in our MTTR

much easier now to

superv ise my m echanics-Supervisor

We have bet ter access

to parts and supp ort

equipment

44

66

(AugSept)

-33%

Baseline(AprJune)

No labour available Inpit

Maintenance BintangNew SOP for truck

repair location wasimplemented

Truck operatorsnow know thatthey alwaysneed to go to pitbase except for:

Engineproblems

Brakeproblems

Steeringproblems

Safety belt

Previously, truckoperators areunsure ifoperating thetruck will makecondition worse

now we are easier

finding the trucks

Improve Repair Time (MTTR) : SMED analysis


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Improve Repair Time (MTTR) : SMED analysis

Description

Video-takingand baselining

Duration

1-3 days

3-4 weeks total

Video analysisand creation of

newprocedures

3-4 days

Trial of newprocedures

1-3 days

Evaluation oftrial

3-4 days

Creating newservice sheetsand standard

jobs

2 days

Video taking following each of the mechanics on duty Categorization of tasks and baselining total time

required for the job

Analysis of video based on externalization,parallelization, tweaking sequences, and removinginternal waste

Identification of new tools and support equipmentsneeded

Mechanics training for new processes Live trial of new processes on the ground (videotaped)

Re-evaluation of trial, refinement of time taken based onsecond observation

Re-evaluation of new tools and support equipmentsneeded

Standardization of new processes and documentationin standard jobs and service sheets

Improve Repair Time (MTTR) : SMED example Result


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p p ( ) pIdeas and new toolsCAT 789 250 hours service

Impact 1/2

Compressor Trolley

Oil filter with bottle samples

Compartment

2 ladders with air filter platform

Stocks of nipples & hoses

Double punch

Operator chair

20 m air hose

Additional tools and facilities needed

Inform operator beforehand, mechanic to drive to end of pitbase with operator waiting

2

Merge electrical, steering and AETA checks5

Do both air filter replacement in parallel (2 ladders, 2mechanics)

6

Oil condition to be checked in parallel7

Ideas

Create inventory for top 10 defective parts10

Mechanics to do light checks while parking to bay4

Mechanics to do steering check while driving to bay8

Create space in ladder to keep old air filter9

Use slide hammer to increase oil flow11

Prepare a trolley and keep it close to truck ready with filter oil13

Put aside old air filter only after the truck has left12

Trolley should contain empty bottles for engine oil sample14

Just before parking we should lift the body up, inspect, andthen park instead of doing at the end

3

1 Ask technicians to handover truck at the entrance of pit base

Process/sequenc-

ingtweaks

Paralleli-zation

Better

supporttools

Externali-zation

Air fi l ter already

placed on top of the

customized ladder

New container and

better oi l draining

too l

The Result of Improvement of OB Trucks OEE


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3


p

The OEE of OB Trucks has been steadily improving from the base-line of about 55%, in current days it isnow more than 65%. Since the completed project of Membara Phase-2 (May-13), for about one year, anaccumulative total cost saving of about 48 million dollars has been generated coming from theimprovement of the OEE of Overburden Trucks at KPC

Improve Operators & Mechanic Discipline through PKU


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p p p g

Starting early month of year 2013 until the end of year, more than 2400 operators, mechanic and supervisorswere being sent to military training program called PKUprogram at the Army training center at Cilodong,West Java. This programs aims at improving their moral, discipline and team-work which induce to

better effectiveness and efficiency of work. This Training program were subsequently scheduled into 8batches . On each batch, they were about 300 employees participated. The period of training was about 3weeks.

KPC used the momentum/opportunity of overflowoperators during parking of many equipment bysubsequently sending the work forces to this militarytraining program

Semi Military Training (PKU) Results


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y g ( )

Untung Suhartanto : A Refueling Superintendent, used to smoke a lots (addicted toit), after PKU program he smoke no more, after he dicipline himself during 3 weeks

military training at Cilodong

Many operators testified that their discipline at works and team work has increased

significantly after PKU program

How to Sustaining KPU result ?

1. A mandatory for each supervisor to conduct apel siaga of their subordinates(operators/mechanic) at the scheduled roster

2. Conduct a survey feed back from the alumni of PKU

3. Sport Competition among PKU alumni held regularly4. Conduct a Workshop for Supervisors regarding the PKU result and benefit5. Always endorsing at every occasion for all workforces to implement the 7 Values of the

company : Excellence, Integrity, Transparency, Agility, Empowerment, Team Work & Care

More operators and mechanic were eventually quitted to smoke, furthermore KPCmanagement has been endorsing and proclaiming that by early of year 2015, all KPCwork sites, not only in the office building but also outside at mining site, at workshop

and the vicinity, on the work areas no body is allowed to smoke.

Sustainability of Improvement : Develop new structure


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Sustainability is a classical issue facing by every improvement initiatives, in order to sustain the process and results

of improvement initiatives, KPC executives deliberately has developed new structure on MOD and MSD which

called Continuous Improvement (CI) Lead and CI-specialist. Structurally these CI-Lead and CI Specialist are

reported to GM MOD and MSD, but horizontally they are on close coordination with existing Business PerformanceImprovement Division (BPID) which has been established since 2008.

Additionally to strengthen the culture of improvement in the company, the COO of KPC since Q4 2013, has been

given a strong direction that for any promotion from supervisor level to higher position (superintendent), beside that

the candidate should be seconded first at Safety Division, he or she should also be seconded at BPID to be directly

assigned to project improvement tasks within at least 6 months.

Continuous Improvement (CI) Academy Projects


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BATCH-1 : Nov 2013 - May 2014

CI Academy Divisi Asal Mentor-Co Mentor Project Task Potential Saving ( million dollars)

1 Sumarjono MOD -MO Anwar-Ambara Queuing Project 0.2

2 Iswanto MOD- HT Anwar-Deni Improve Shift Change (additonal load during s.change) Intangible

3 Denastry MOD-BIG Anwar-Ambara Improve Payload T282 1.6

4 M Yanuar Hidayat CPHD Ambara-U.Suhartanto Improve Payload EH4500 3.0

5 Zulfikar S MOD-PitJ Anwar-Ambara Fuel Efficiency Project Part -4 3.6

6 Bachtiar Hidayat MSD Chairal S- U.Suhartanto OB truck (planning isiatif, inpit hose fab.) + SMK Intangible

7 Sahirul Alim MSD Ilham S-Marzel P.Excavator , support equipment, Defect Elimination of

Cat789&EH4500 Intangible

Total Projects 8.4

BATCH-1 : August 2014 - Feb 2015

CI Academy Divisi Asal Mentor Project Task

1 Adi Setyo Utomo MSD Untung S Mews Performance Improvement

2 Raymond Lasor Bosar Ritonga MSD Untung S WO Closure and Labor Costing

3 Irwansyah MSD Untung S Land Cruisher PA Improvement

4 Muhammad Kurniawan MOD Ramli Denas + Anwar Improve Productivity of R9800

5 Hermanto MOD Deni apriadi + Anwar Improved produksi MS Rehab

6 Galuh Boyo Munanto HSES Kris Pranoto+Ambara Water Quality Improvement

7 Wahyu Wardana HSES Kris Pranoto+Ambara Rehabilitation Quality Improvement

Future Challenges


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Will take time to achieve a real Culture of Continuous Improvement

Long term goal ofcontinues improvement ishow to make improvement

become day-to-day practice

of doing business of everyindividual in the company

END of Presentation

kpc_productivity improvement 2014

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