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Successful Implementation ofISO 50001 Energy Management Systems

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1. Introduction of KHMOCompany Background

Company Assets

Core businesses

2. Why Implement ISO 50001

3. Implementation Approach4. Our ISO Journey5. Energy Policy and Certificate6. Challenges and Benefits7. Case Study (Conclusion)

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• Kim Heng has been in the Marine Offshore industry for more than 4 decades.

• Management currently led by:

Mr Thomas Tan, Chairman / CEO

With more than 35 years of experience in the upstream oil & gas industry, Thomas Tan chairs the Board of Directors as Chairman and CEO of Kim Heng Offshore & Marine Holdings Pte Ltd. He is responsible for formulating the corporate vision, mission and objectives of the Group. His duties include developing and reviewing of strategic business plans to achieve growth in revenue, profits and improvement of the organization's resources. Thomas leads the executive team in the execution of the organization's strategic plans.

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2 strategically located Waterfront Shipyards

9 Pandan CrescentAbout 34,125 m2, 137 metres waterfront

48 Penjuru RoadAbout 19,512 m2, 68 metres waterfront

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11 Tugs/ Passenger Launches (240 bhp to 3200 bhp)

29 barges (80ft to 300ft)

17 Cranes (crawler and barge)

50 tonnes to 550 tonnes

HEAVY – LIFT EQUIPMENTMARINE SUPPORT VESSELS

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1. Offshore Rig & Supply Chain Management Services

2. Vessel Newbuild & Conversion

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Installation of Offshore Production Modules & Systems

Fabrication and Assembly of Rig Modules

Offshore Deepwater Mooring Operations

Repair, Maintenance and Conversion of Offshore Platforms

Jack Up Randolph Yost

Upper and Lower Column of Semi-Submersibles Rig

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Sale / Rental of Specialized Tubular Products, Ancillary Oilfield and Mooring Equipment

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Tubular Products

Semi Submersible Transocean Legend

Afloat Repair and Maintenance Services for Oil Rigs and Vessels

Ancillary Oilfield Equipment

Towage of Rigs

Jack Up Noble Mick O’Brien

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1) Chartering of Marine Support Vessels/ Offshore Heavy Lift Equipment

2) Logistics and Support Services3) Offshore Marine Transportation & Marine Construction

Support

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Jascon 25

APC Aussie 1

KPS Alican Bey

McDermott LB32

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SUCCESSFUL CERTIFICATION OF ISO 50001 ENERGY MANAGEMENT SYSTEMS

1. Improve management of energy consumption

In the shipyard business, we have very high energy consumption due to round the clock operations. Our profit margin is impacted by factors such as high labor costs and operational costs. With a reduction of energy consumption, we can drive down operational costs incurred by machinery & labor

2. Improve Business Efficiency & Production

We want to achieve better utilization of our resources and assets because of head-on competition from neighboring countries such as China & Korea.

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PROFIT MARGIN

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3. Corporate social responsibility– Kim Heng is a company that recognizes the need for

energy conservation to keep a sustainable world for the future

– i.e. Support Singapore’s “Clean & Green” Campaign

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Engage EMSI to consult on ISO 50001

Formation of Energy Management Team

Energy Policy

Energy measurements & analysis

Energy Objectives, Targets and Action Plan

Reporting and Filing

Internal Auditing

BSI ISO 50001 Auditing

Receive  ISO 50001 Certification

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Training of staff for system verification –audit

October 2012 May 2013April 2013December 2012

Kickoff meeting

Planning, Awareness and Gap analysis

Systemtraining

Launch of P & P First Internal audit

Corrective and Preventive action

ISO 50001 EnMSawarded

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Management review

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Energy Consultant: EMSI Singapore (Accredited ESCO)Certification body: BSI

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• Resistance from Staff– Adaptation to new work procedures

– Close monitoring of staff from Management

• Manpower resources– Management and staff needs to attend

meetings/trainings on top of their current workload

• Return of investment– Management to consider budget vs savings

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• Organisation industrial standing– 1st few shipyards to achieve ISO 50001

• Increased in Production Efficiency – Ability to assess energy peak/slump period for production

planning

• Usage of Energy Efficient Products – Awareness created to procure energy efficient products

• Reduction of Overheads – Energy bills reduced due to energy conserved

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10 Data loggers on 10 individual

distribution box installed to log down

energy consumptions

• Accuracy of energy charges – Ability to countercheck energy usage by KHMO and stated

energy charges in utility bills

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•Performance IndicatorMONTH Total Man

HourskWh PI Factor

(kWh/Manhour)

MAR 2013 69339 87308 1.25

MAY 2013 78686 69182 0.87

Comparing Mar 2013 and May 2013• PI dropped from 1.25 to 0.87, meaning that only 0.87

kWh was used per manhour, compared to 1.25 kWh being used per manhour

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Performance Indicator (PI) = kWh / Manhours

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Tracking and analysis of energy and OT1. Usage of energy was monitored from 8am - 5pm and 5pm - 8am.

The energy usage was still at 40% of the former. Why?• Upon investigation, it was found that :

– Air conditioning and lights were left on during lunch breaks and even after working hours.– Machinery/Equipments were left running even after operating hours.– Unnecessary and redundant equipment were found still plugged in after project completion– Workers loitering around after work hours

2. Action taken:• Implementation of policy & procedure to turn off all air conditioning and

lighting after office hours or work hours, i.e. timers for air cons are set• Shut down of equipment / machineries when not in use, i.e., during breaks and

after working hours. • Clearance of redundant equipment were cleared • Encouragement of workmen to leave premises at end of workday• Reduction of perimeter lighting

3. Our Benefits:• Increase in productivity through better monitoring• Able to reduce costs by minimizing wastage of energy• Able to control unnecessary overtime costs incurred

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Thank You21