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Gede Nugrah Ambara, Business Process Improvement Department Manager, PT Kaltim Prima Coal delivered this presentation at Kalimantan Coal 2014 in Balikpapan Indonesia. This event brings together 120+ senior executives, and decision makers from government, mining, infrastructure, shipping and supply sectors to discuss new policies and strategies for tackling the current and emerging issues within the burgeoning Kalimantan coal sector. Visit the website to find out more: http://bit.ly/KalimantanCoal2014
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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 Improvement – KPC
Novotel Hotel Balikpapan, Indonesia
2-3 September 2014
*e-mail : [email protected]
ph : +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
1 1
PT Kaltim Prima Coal Vision
Indonesia’s 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 improve
livelihood, Optimizing value for all stakeholders,
and carrying out best practice in management
and operations to deliver consistent high quality
product and performance
2
Location and Project Summary
3
Sangatta Coal Deposit
Sangatta coal deposit occurrs in Balikpapan formation, within
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 to
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.
4
Exploration , Drilling & Geotechnical Monitoring
5 5
Soil Handling, Drill Blast, OB Removal & Coal Mining
6 6
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
Caterpillar 785 55 135 tonnes
Komatsu HD785 52 100 tonnes
Caterpillar 777 14 80 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
7
CPP Stockpiles
8 stock piles (Prima.Pinang & Melawan Brand)
Total capacity > 300 kt 7
8
13 Km Dual OLC with speed 8.68 m/s
capacity Max 9,000 tonnes per hour
8
Overland Conveyor
9 9
Coal Transport & Loading Facilities (Sangatta)
KPC has complete facilities to provide full coal mining and transportation solutions
Coal Transportation
to 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) leg and up to 9,000 tph for 2 ship loading
10 10 10
Port Stockpile
7,500 tph for 1 Ship Loader
9,000 tph for 2 Ship Loaders
The facility can handle cape Size
Ship (vessel) up to 200 kt with
approx 20-25 hours
11 11
Coal Trans-shipment Facilities
Tanjung Bara Barge Loading
New 1000 tph facility commissioned
Barges loaded to vessel at Tanjung Bara
anchorage
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)
11
12
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 KPC
has 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 heavily
impacted by continual decrease of coal price which due to prolonged economic crisis hit Europe, and
slowing down of China and India economic which limits their coal import demand, and Excess coal supply
from North America. During one year by the end of year 2013, KPC Coal Average Selling Price has dropped
more than 12 USD.
The uncertainty of when the coal price will back to normal continues even until nowdays, with main work
force 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 decisions
some 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.
13
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 deliberately
reduce 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 overall
strip ratio (SR) in year 2012 was 11.7, subsequently reducing to 9.8 by the end of year 2014. The
overburden cost removal constitute about 80% of total mining cost, by doing this strategy, KPC has been
significantly lowering the unit cost of production ($/tonnes).
This parking up strategy has been subsequently implemented since early days of year 2013 and continues
until 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 monitored
•Procedure to re-activate any machine to be followed up carefully
•A Roster/schedule of parking-up the machines is updated regularly to suit to recent/current dynamic
situation of coal mining activities, i.e : a significant change on overburden cycle-time which affect to
increasing 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, for
instances the SOP of Match Factor which relate to Fuel Efficiency project
14
Reduce Production: parking up some of the main equipment
15
Liebherr T282 – 360 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 effectiveness
of equipment which were overall availability, usage and utilization were still relatively low compared to
world best practice. Further study also revealed that within digger-truck systems, the diggers capacities
were 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 at
improving overall effectiveness of equipment (OEE) particularly it was first focusing on improving the OEE
of 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 over
3000 personnel, and Mining Support Division which maintain the mining fleet which supported by about
1100 personnel. In MOD, Membara Project was focusing at improving OB trucks utilization on the biggest
pit at that time, i.e. : Pit Bintang, while at MSD the focus was how to improve the physical availability of OB
trucks. At the end of year 2012, in MSD, after completing the project on OB trucks, the initiatives were then
rolled 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 2nd pass 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 all
improvement initiatives sustained not only during project but keep continues in the future until the life of
mine.
16
Liebherr T282 – 360 T = 32 Units
Frame-work of Membara Project
Mindsets
and
capabilities
(MC)
Management
infrastructure
(MI)
Management
infrastructure 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 and
resources are configured and
optimized to create value
and minimize losses"
▪ OEE improvement
– Reducing lost time of
un-critical activities
– Improving Physical
Availability (PA) of
trucks
▪ Fleet dispatch
▪ Truck cycle time
management
▪ Maintenance planning
and execution Mindsets and capabilities
maturity
"The way people think, feel and conduct themselves in the
workplace, both individually and collectively“
▪ Management training
▪ Frontline engagement
▪ Effective feedback
Membara framework” focuses on
implementing new initiatives and
ensuring their sustainability, to
achieve its goal
Notes: Improving OEE in
previous term is relatively
similar to improving overall
utilization of the equipment, i.e.
Utilization (KPC) = PA x Usage
17
Liebherr T282 – 360 T = 32 Units
The Goal of OEE Improvement
A goal of attaining 63% OEE
with a stretch plan of 69%
OEE
All ops delays
System delays
Noncritical
delays
Critical delays
Available
time
BM2
PM1
Total
85
65
Current OEE Potential future
89
71
Avail
ab
ilit
y
Uti
lizati
on
57 63
Availability %
Utilization %
OEE %
1 Planned maintenance
2 Breakdown maintenance
Improvements
Improve availability
from 85% to 89%
▪ Improve MTTR
▪ Improve MTBF
▪ Defect
elimination
▪ Better
comunication
with MOD
Improve utilization
from 65% to 71%
▪ Improved shift
change
▪ Reduce no
operator
▪ Reduce meal
and pray delays
▪ Reduce time for
recovery after
rains
▪ Improve haul
roads
Improved availability
and efficiency resulting in
▪ Improved OEE of 63%
(stretch target 69%)
MC
MI
18
Liebherr T282 – 360 T = 32 Units
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 Observation
and involving line teams in
refining concept of initiatives
… and lock changes by
creating official SOPs and
Change Management
documents
Also involving all neccesary
stake holders : MOD-MSD
staff, Dispatch, Contractors,
and OEMs
Multiple iterations on the SOP
document were conducted
with all stakeholders to
ensure buy-in
19
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 were
defined
Category
Manag-
ement
Infrastruct
ure
▪ Robust performance management system introduced that includes appropriate incentive systems and
performance 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
Technical
systems
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 equipment configuration
Improve end to end mine planning and execution process
Make long term strategic mine plan assumptions robust
Planning and dispatch (Mine planning and Mine optimiza-tion)
Equipment availability (MSD- Haul trucks) Equipment utilization (MOD) A C B
20
Liebherr T282 – 360 T = 32 Units
Improving Utilization of MOD OB trucks
Part of OB Truck’s OEE Improvement at Mining Operation Division Areas is how to improve the utilization
of 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 process
2.Meal and Pray Delay
3.Wet Road Delays (Quick Start-up /Recovery after Rain : QSuar)
4.No Operator Delay
5.Improving Hauling (to reduce cycle time)
These four main improvement initiatives at Mining Operation Division within Membara Project are known
as “Ready MOD” Project
Meal Pray
Shift Change
No Operator
Recovery from rain
Improve Hauling
21
Improving Shift Change Process
Impact Solution Situation
Baseline
Mar 2013
▪ High shift change delay
pre-implementation due
to:
– Operators take long
time in muster area
– Operators take long
to handover at shift
change 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 and
upfront unit assignment
2. Clear truck assignment
▪ Unit status and operator assignment
updated before start of shift and
displayed in muster area
3. Increase supervisor control in muster
area and shift change area
▪ Supervisors are assigned to monitor
muster area and shift change area
▪ Clear responsibility to ensure operators
get into trucks quickly
4. Hot handovers
▪ Hot handover procedure implemented
for safe and efficient hand-over of
trucks 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
4.6 4.2
J HT
2.5
BIG
3.4
Initiatives Prioritization matrix
f Schedule PPE distribution
h Set up board to display truck location and
operator 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 c h
i j
f
m
g
k l
22
Liebherr T282 – 360 T = 32 Units
Shift Change : Remove Benches & Reinforce Supervisors Authority
Muster area processes
▪ Benches in the muster area have been removed
so that the operators moved quickly
▪ Supervisor uniform and equipment reflects the
authority and role he should have
▪ Yellow PPE and different colored safety helmet
mark the supervisor as different and gives him
additional authority responsibility (e.g., army rank)
▪ Communication device is a must in order to be
able to provide real time answers to problems
▪ Light lamp allows supervisor to direct vehicles
into the shift change area during the night
▪ PPE distribution is scheduled once a fortnight or
every 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
23
Liebherr T282 – 360 T = 32 Units
Improving Meal Pray Process
Impact
33.3
PitJ HT
46.2
35.9
10.3
BIG PitJ
37.3
26.2
11.0
HT
22.9
14.4
8.5
BIG
27.1
17.7
9.4
1. Staggered Meal and Pray
breaks
Optimal schedule with
staggered breaks with each
back-up operator covering
more trucks than previously
2. Shadow crew enforcement
Shadow crew is enforced
working according to shift
and new working hours from
6 to 6 to improve shift change
3. Back-up allocation and
visibility
Operators from breakdown
units utilized as back-ups and
allocated optimally
4. Revised roles and responsi-
bilities
Specially created pondok
supervisors manage back-up
process in the pondok
supported by dispatch
5. Hot handovers
Hot handover procedure
implemented for safe and
efficient handover of trucks
from one operator to the next
Solution Situation
Apr-Jun1 Sep- Feb2
▪ High meal pray delay
observed pre-
implementation due to
unregulated break time and
poor back-up allocation
1 Baseline period, but lower Meal pray delay is recorded due to 3 shifts in Bintang and Hatari
2 Actual pre-implmentation performance after migration to 2 shifts for Bintang and Hatari
3 Only from Apr 15th , after implementation
4 Only from Apr 20th when implementation is finished
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 was
implemented across all 3
pits in Mar – Apr 2013
▪ Good impact from the
initiative has been seen
with the delay reduced to
below budget figures in
all 3 pits
24 24
H:\Personal\Harold Ong\Indonesia\PGN\IPO\Legal DD Presentation.ppt - May 20 2003 - 23:24 /24
Staggered Meal pray using a floating back-up system
Key design decisions in staggering meal and pray breaks
Principles Benefits
▪ 5-6 configuration can
meet the constraint on
spread of break variation
▪ possible to implement
this configuration for all
trucks at a 3.72 manning
ratio
Details of implementation
▪ 1 back-up operator
deployed for every 5
trucks for maximum
coverage at available
manning ratio within
acceptable break window
3 Break
schedule
▪ Saving in time lost due to
pray delay. For
example,in the day shift,
in addition to meal, the 2
breaks cover Dzuhur and
Ashar prayers
▪ Cycle time loss due to
additional travel to
pondok are reduced
▪ Optimal schedule with
staggered breaks are
implemented
– 2 x 30 mins during
day shift
– 1 x 1 hr during the
night shift
▪ Savingcycle time due to
reduction in handovers
▪ Equal working hours for
all operators
▪ All operators man one
equipment after the other
as back-ups instead of
using designated back-
up operators
Floating
back-up
system 2
5:6
configura-
tion 1
New pondok supervisor roles have been
created to provide additional manpower
for managing Meal pray process
25 25
H:\Personal\Harold Ong\Indonesia\PGN\IPO\Legal DD Presentation.ppt - May 20 2003 - 23:24 /25
Advantages of fixed back-up system
Advantages of floating back-up system Problem of operators
refusing to man trucks in
poor condition can be
avoided
Complexity of kimper
management can be
reduced by designating
mutli-kimpered operators
as back-up
Easy to implement as its
close to current practice
Feeling of equipment
ownership by primary
operators, potentially
reducing maintenance
issues
Elimination of cycle time
loss due to back-ups
returning after each break
slot to pondok (~ 5
mins/truck)
Potential opportunity of
identifying operators who
don’t maintain trucks in
good condition as they
can be reported by others
Staggered Meal pray (continue)
Due to the saving in
cycle time, floating
system for back-ups
is preferred over the
fixed system
Meal Pray Delay : min/avail.unit/shift
26
Liebherr T282 – 360 T = 32 Units
Improving Physical Availability component initiatives
Diagnostics time
Repair time
Confirmation
time
Response time
Preparation time
Planning
improvements
Opportunity
maintenance
Equipment
strategy
Increase
MTBF
Increase
Physical
Availability
of Trucks
Reduce
MTTR
Focus area Components
Defect
elimination
1
2
1a
1b
1c
1d
1e
2a
2b
2c
2d
9 areas of focus for
Improving Physical
Availability of OB
Trucks
▪ We can break down
Physical Availability
into 9 components
▪ To ensure
comprehensiveness,
we should generate
initiatives around all
these components
PA = 1 – (MTTR/MTBF)
27
Liebherr T282 – 360 T = 32 Units
Reduce Response Time (Improve MTTR of OB Trucks)
Ideas implemented to reduce staff
unproductivity during shift
changeover
After, we have reduced this unproductive
time by up to 25%
New shift change process Before, mechanics don’t work for a
full 65 minutes after shift change
Total 65
Prayer 24
PPE preparation 5
Other discussions 6
Discussion and
job distribution 7
Daily PA update 2
Fatigue Control 2
Safety talk 5
Travel time from
workshop 14
44
5
Total
Discussion and
job distribution
2 PPE preparation
Daily PA update 2
Fatigue Control 2
Safety Talk 4
Prayer 15
Travel time from
workshop 14
All discussions done outdoors,
reducing unnecessary activities
(removal of shoes, irrelevant
discussions)
21 mins reduction in
mechanics
unproductivity
Staggered
praying from
the start
28
Liebherr T282 – 360 T = 32 Units
Improve Shift Change and no labor-mechanic available
Prayer rooms set up at Maintenance Inpit Bases to
reduce time needed to start-up during over shift period
▪ Up to 15
minutes is
wasted every
beginning of
shift due to
praying in
batches
▪ Small prayer
rooms are
bottleneck
for faster
start-up time
▪ Prayer rooms are ready and in use
▪ Total of 2 prayer rooms are
prepared: at In-Pit Maintenance
bases
New SOP for truck repair location has significantly
reduced “no labour available” category in our MTTR
much easier now to
supervise my mechanics -
Supervisor
We have better access
to parts and support
equipment
44
66
(Aug – Sept)
-33%
Baseline
(Apr – June)
“No labour available” Inpit
Maintenance Bintang New SOP for truck
repair location was
implemented
▪ Truck operators
now know that
they always
need to go to pit
base except for:
– Engine
problems
– Brake
problems
– Steering
problems
– Safety belt
▪ Previously, truck
operators are
unsure if
operating the
truck will make
condition worse
“ now we are easier
finding the trucks”
29
Liebherr T282 – 360 T = 32 Units
Improve Repair Time (MTTR) : SMED analysis
Description
Video-taking
and baselining
Duration
1-3 days
3-4 weeks total
Video analysis
and creation of
new
procedures
3-4 days
Trial of new
procedures 1-3 days
Evaluation of
trial 3-4 days
Creating new
service sheets
and 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 removing
internal waste
▪ Identification of new tools and support equipments
needed
▪ Mechanics training for new processes
▪ Live trial of new processes on the ground (videotaped)
▪ Re-evaluation of trial, refinement of time taken based on
second observation
▪ Re-evaluation of new tools and support equipments
needed
▪ Standardization of new processes and documentation
in standard jobs and service sheets
30
Liebherr T282 – 360 T = 32 Units
Improve Repair Time (MTTR) : SMED example Result Ideas and new tools – CAT 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 pit
base with operator waiting 2
Merge electrical, steering and AETA checks 5
Do both air filter replacement in parallel (2 ladders, 2
mechanics) 6
Oil condition to be checked in parallel 7
Ideas
Create inventory for top 10 defective parts 10
Mechanics to do light checks while parking to bay 4
Mechanics to do steering check while driving to bay 8
Create space in ladder to keep old air filter 9
Use slide hammer to increase oil flow 11
Prepare a trolley and keep it close to truck ready with filter oil 13
Put aside old air filter only after the truck has left 12
Trolley should contain empty bottles for engine oil sample 14
Just before parking we should lift the body up, inspect, and
then park instead of doing at the end 3
1 Ask technicians to handover truck at the entrance of pit base
Process/
sequenc-
ing
tweaks
Paralleli-
zation
Better
support
tools
Externali-
zation
Air filter already
placed on top of the
customized ladder
New container and
better oil draining
tool
31
Liebherr T282 – 360 T = 32 Units
The Result of Improvement of OB Trucks OEE
The OEE of OB Trucks has been steadily improving from the base-line of about 55%, in current days it is
now more than 65%. Since the completed project of Membara Phase-2 (May-13), for about one year, an
accumulative total cost saving of about 48 million dollars has been generated coming from the
improvement of the OEE of Overburden Trucks at KPC
32
Liebherr T282 – 360 T = 32 Units
Improve Operators & Mechanic Discipline through PKU
Starting early month of year 2013 until the end of year, more than 2400 operators, mechanic and supervisors
were being sent to “ military training program” called PKU program 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 8
batches . On each batch, they were about 300 employees participated. The period of training was about 3
weeks.
KPC used the momentum/opportunity of overflow
operators during parking of many equipment by
subsequently sending the work forces to this military
training program
33
Liebherr T282 – 360 T = 32 Units
Semi Military Training (PKU) Results
Untung Suhartanto : A Refueling Superintendent, used to smoke a lots (addicted to
it), 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 regularly
4. Conduct a Workshop for Supervisors regarding the PKU result and benefit
5. 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 KPC
management has been endorsing and proclaiming that by early of year 2015, all KPC
work 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.
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Liebherr T282 – 360 T = 32 Units
Sustainability of Improvement : Develop new structure
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 Performance
Improvement 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.
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Liebherr T282 – 360 T = 32 Units
Continuous Improvement (CI) Academy Projects
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 0.22 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&EH4500Intangible
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
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Liebherr T282 – 360 T = 32 Units
Future Challenges
Will take time to achieve a real Culture of Continuous Improvement
Long term goal of
continues improvement is
how to make improvement
become day-to-day practice
of doing business of every
individual in the company
END of Presentation