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Kalimantan Coal Market

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 : gede.ambara@kpc.co.id
ph : +62 (549) 52 1501
The Outline Summary

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

PT Kaltim Prima Coal


Vision
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 improve
livelihood, Optimizing value for all stakeholders,
and carrying out best practice in management
and operations to deliver consistent high quality
product and performance

Location and Project Summary

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.
3

Exploration , Drilling & Geotechnical Monitoring

Soil Handling, Drill Blast, OB Removal & Coal Mining

KPC Fleets and Production


Trucks
Liebherr T282
Hitachi EH 4500/5000
Caterpillar 789
Caterpillar 785
Komatsu HD785
Caterpillar 777

Shovels
Liebherr R9800
Liebherr 996
Hitachi EX3600
Hitachi EX 3500
Hitachi EX 2500
Liebherr 984C

Units Capacity
31
129
94
55
52
14

360 tonnes
282 tonnes
185 tonnes
135 tonnes
100 tonnes
80 tonnes

Units Capacity
3
18
11
6
4
4

45 m3
32 to 33 m3
23 to 24 m3
22 m3
15 16 m3
5 8 m3

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
6

CPP Stockpiles

8 stock piles (Prima.Pinang & Melawan Brand)


Total capacity > 300 kt

7
7

Overland Conveyor
13 Km Dual OLC with speed 8.68 m/s
capacity Max 9,000 tonnes per hour

8
8

Coal Transport & Loading Facilities (Sangatta)

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

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

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

10

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

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.

12

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

13

Reduce Production: parking up some of the main equipment

14

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
Liebherr T282 360 T = 32 Units
mine.
15

Frame-work of Membara Project


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

Management
infrastructure maturity

Management
infrastructure
(MI)

Mindsets
and
capabilities
(MC)

Mindsets and capabilities


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

Membara framework focuses on


implementing new initiatives and
ensuring their sustainability, to
achieve its goal

Notes: Improving OEE in


"The way people think, feel and conduct themselves in the
previous term is relatively
workplace, both individually and collectively
similar to improving overall
Management training
utilization
of the T282
equipment,
Liebherr
360i.e.
T = 32 Units
Frontline engagement
Utilization (KPC) = PA x Usage
Effective feedback
16

The Goal of OEE Improvement


Current OEE

Improvements
Improve availability
from 85% to 89%

Total

Availability

Potential future

PM1

85
BM2

Availability

Utilization

OEE

Improve MTTR
Improve MTBF
Defect
elimination

89

Better

MI

MC

A goal of attaining 63% OEE


with a stretch plan of 69%

comunication
with MOD

Available
time

Critical delays

Utilization

Noncritical

Liebherr
T282 360 T =
delays
System delays

65

All ops delays

OEE

57

Improve utilization
from 65% to 71%
Improved shift
32change
Units
Reduce no
operator
Reduce meal
and pray delays
Reduce time for
recovery after
rains
Improve haul
roads

71

Improved availability
and efficiency resulting in

63

Improved OEE of 63%


(stretch target 69%)

17

Membara Project improvement process at MOD-MSD


Intensive Field Observation
and involving line teams in
refining concept of initiatives

and lock changes by


creating official SOPs and
Change Management
documents

Involving many line teams


and create official SOP
documents; these can
change after better insight
from implementation

Also involving all neccesary


stake holders : MOD-MSD
staff, Dispatch, Contractors,
and OEMs

Liebherr T282 360 T = 32 Units

Multiple iterations on the SOP


document were conducted
with all stakeholders to
ensure buy-in

18

Improving OB Truck OEE : the Initiatives development

Category

Equipment availability (MSD- Haul trucks)

Reduced repair response time:


Staggered shifts for MSD

Technical
systems

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

Mindset &
capabilities

Equipment utilization (MOD)

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

Planning and dispatch (Mine


planning and Mine optimiza-tion)

Improve dispatch process and equipment


configuration
Improve end to end mine planning and
execution process
Make long term strategic mine plan
assumptions robust

Improved dumping practices:


Refine dumping SOPs

Reduced repair complete confirmation time


Reduced repair time:
SMED for priority ideas

Improved shift change practices


Newly defined shift change process and SOP

Defect elimination initiatives

Improved recovery from stops practices

New equipment strategy

Optimal interfaces between departments:


MOD - MSD

Improved workmanship
Management
Infrastruct
ure

Reduction in time for meal and pray

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

Refined organization structure that is aligned towards goal of the organization

Frontline engagement program to create awareness and generate momentum

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

After multiple idea


generation session in
MSD, MOD and dispatch
a KPC Membara
operating model evolved
and new initiatives were
defined

Capability building curriculum targeted for Membara change managers and initiative champions
Specific technical training programs for operators, supervisors and mechanics

19

Improving Utilization of MOD OB trucks


Part of OB Trucks 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

Shift Change
Meal Pray
Recovery from rain
Liebherr T282 360 T = 32 Units

No Operator

Improve Hauling
20

Improving Shift Change Process


Situation

High shift change delay


pre-implementation due
to:
Operators take long
time in muster area
Operators take long
to handover at shift
change area
17.4

6.9
4.2

Baseline

i
h

g
l

b
d

initiatives implemented across all 3 pits


Time lost reduced by 50% - 80%, equals to
0.25% to 1% of OEE
3.4 2.5 4.6
4.2
Mar 2013
BIG

HT

Initiatives Prioritization matrix


a Remove benches from the muster area
b Re-inforce supervisor authority

4. Hot handovers
Hot handover procedure implemented
for safe and efficient hand-over of
trucks from one operator to the next
Impact

HT

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

11.9

BIG

Impact

Solution

c Install siren in the muster area for efficiently


d Effective safety briefing in manhaul/ muster area
e Develop & follow stdard format for safety briefing
f Schedule PPE distribution
g Clear assignment of transport for each panel
j
c
f
m
a

Ease of implementation

h Set up board to display truck location and


operator assignment in the muster area
i clear guidelines & target time for equip. handover
j Assign supervisor during shift change
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

21

Shift Change : Remove Benches & Reinforce Supervisors Authority


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

Liebherr T282 360 T = 32 Units


22

Improving Meal Pray Process


Situation

Solution

High meal pray delay


observed preimplementation due to
unregulated break time and
poor back-up allocation

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


46.2
10.3
37.3

33.3

3. Back-up allocation and


visibility

22.9

Operators from breakdown


units utilized as back-ups and
allocated optimally
4. Revised roles and responsibilities

13.7

13.9

14.2

8.5

Specially created pondok


supervisors manage back-up
process in the pondok
supported by dispatch

5.8

5.1

5.5

7.9

8.8

8.7

BIG

HT3

PitJ4

27.1
9.4
35.9
26.2
17.7

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

Shadow crew is enforced


working
according to shift
Pray
and new working hours from
Meal
6 to 6 to improve shift change
33.3

11.0

Impact

14.4

5. Hot handovers

BIG HT PitJ BIG HT PitJ

Hot handover procedure


implemented for safe and
efficient handover of trucks
from one operator to the next

Liebherr T282
360 T = 32 Units
2

Apr-Jun1

Sep- Feb

Apr 2013

23

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

5:6
configuration

Floating
back-up
system

Break
schedule

Details of implementation
1 back-up operator
deployed for every 5
trucks for maximum
coverage at available
manning ratio within
acceptable break window

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

All operators man one


equipment after the other
as back-ups instead of
using designated backup operators

Savingcycle time due to


reduction in handovers
Equal working hours for
all operators

Optimal schedule with

Saving in time lost due to

staggered breaks are


implemented
2 x 30 mins during
day shift
1 x 1 hr during the
night shift

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

New pondok supervisor roles have been


created to provide additional manpower
for managing Meal pray process

24

H:\Personal\Harold Ong\Indonesia\PGN\IPO\Legal DD Presentation.ppt - May 20 2003 - 23:24 /25

Staggered Meal pray (continue)


Advantages of fixed 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

Advantages of floating back-up system


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
dont maintain trucks in
good condition as they
can be reported by others

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


Feeling of equipment
ownership by primary
operators, potentially
reducing maintenance
issues
25

Improving Physical Availability component initiatives


Focus area

9 areas of focus for


Improving Physical
Availability of OB
Trucks

Components
1a

Response time

1b Diagnostics time

Reduce
MTTR

1c Preparation time

PA = 1 (MTTR/MTBF)

We can break down


Physical Availability
into 9 components

To ensure
comprehensiveness,
we should generate
initiatives around all
these components

Increase
Physical
Availability
of Trucks

1d

Repair time

1e

Confirmation
time

2a

Equipment
strategy

2b

Defect
elimination

2c

Planning
improvements

2d

Opportunity
maintenance

Increase
MTBF

Liebherr T282 360 T = 32 Units


26

Reduce Response Time (Improve MTTR of OB Trucks)


Before, mechanics dont work for a
full 65 minutes after shift change
Travel time from
workshop
Safety talk

14

Prayer

Daily PA update

Other discussions

PPE preparation

Prayer

Travel time from


workshop

Fatigue Control

Discussion and
job distribution

After, we have reduced this unproductive


time by up to 25%

Staggered
praying from
the start

15

Safety Talk

Fatigue Control

Daily PA update

Discussion and
job distribution

PPE preparation

Ideas implemented to reduce staff


unproductivity during shift
changeover

Total
24

Liebherr T282 360 T = 32 Units


Total

14

New shift change process

65

44

21 mins reduction in
mechanics
unproductivity

All discussions done outdoors,


reducing unnecessary activities
(removal of shoes, irrelevant
discussions)
27

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

Prayer rooms are ready and in use


Total of 2 prayer rooms are
Up to 15

prepared: at In-Pit Maintenance


bases

minutes is
wasted every
beginning of
shift due to
praying in
batches

Small prayer
rooms are
bottleneck
for faster
start-up time

Liebherr T282 360 T = 32 Units

New SOP for truck repair location has significantly


reduced no labour available category in our MTTR
New SOP for truck
repair location was
implemented

No labour available Inpit


Maintenance Bintang
66

Truck operators
now know that
they always
need to go to pit
base except for:

Engine

problems
Brake
problems

-33%
44

now we are easier


finding the trucks

Steering

problems
Safety belt

Previously, truck
operators are
unsure if
operating the
truck will make
condition worse

Baseline (Aug Sept)


(Apr June)
much easier now to
supervise my mechanics Supervisor
We have better access
to parts and support
equipment
28

Improve Repair Time (MTTR) : SMED analysis


Description
Video-taking
and baselining

Video taking following each of the mechanics on duty


Categorization of tasks and baselining total time

Duration
1-3 days

required for the job

Analysis of video based on externalization,


Video analysis
and creation of
new
procedures

Trial of new
procedures

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)

3-4 days

1-3 days

Re-evaluation of trial, refinement of time taken based on


Evaluation of
trial

second observation
Re-evaluation of new tools and support equipments
needed

Creating new Standardization of new processes and documentation


service sheets
in standard jobs and service sheets
and standard
Liebherr T282 360 T = 32 Units
jobs

3-4 days

2 days

3-4 weeks total


29

Improve Repair Time (MTTR) : SMED example Result


Ideas and new tools CAT 789 250 hours service

Ideas
Process/
sequencing
tweaks

Ask technicians to handover truck at the entrance of pit base

Inform operator beforehand, mechanic to drive to end of pit


base with operator waiting
Just before parking we should lift the body up, inspect, and
then park instead of doing at the end

Mechanics to do light checks while parking to bay

Merge electrical, steering and AETA checks

Paralleli6
zation
7

Better
support
tools

Additional tools and facilities needed

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

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


mechanics)
Oil condition to be checked in parallel

Mechanics to do steering check while driving to bay

Create space in ladder to keep old air filter

10 Create inventory for top 10 defective parts


11 Use slide hammer to increase oil flow
12 Put aside old air filter only after the truck has left

Liebherr T282 360 T = 32 Units

Externali- 13
Prepare a trolley and keep it close to truck ready with filter oil
zation
14 Trolley should contain empty bottles for engine oil sample

New container and


better oil draining
tool

Air filter already


placed on top of the
customized ladder

30

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 theOEE
Liebherr T282
360 of
T Overburden
= 32 Units Trucks at KPC
31

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
by
Liebherr
T282
360ofTmany
= 32 equipment
Units
subsequently sending the work forces to this military
training program

32

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
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.

Many operators testified that their discipline at works and team work has increased
significantly after PKU program
How to Sustaining KPU result ?
1.
2.
3.
4.
5.

A mandatory for each supervisor to conduct apel siaga of their subordinates


(operators/mechanic) at the scheduled roster
Conduct a survey feed back from the alumni of PKU
Sport Competition among PKU alumni held regularly
Conduct a Workshop for Supervisors regarding the PKU result and benefit
Always endorsing at every occasion for all workforces to implement the 7 Values of the
company : Excellence, Integrity, Transparency, Agility, Empowerment, Team Work & Care

Liebherr T282 360 T = 32 Units

33

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.

Liebherr T282 360 T = 32 Units


34

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
2 Iswanto

MOD -MO
MOD- HT

Anwar-Ambara
Anwar-Deni

Queuing Project
Improve Shift Change (additonal load during s.change)

3 Denastry

MOD-BIG

Anwar-Ambara

Improve Payload T282

4 M Yanuar Hidayat

CPHD

Ambara-U.Suhartanto

Improve Payload EH4500

5 Zulfikar S

MOD-PitJ

Anwar-Ambara

Fuel Efficiency Project Part -4

6 Bachtiar Hidayat

MSD

Chairal S- U.Suhartanto OB truck (planning isiatif, inpit hose fab.) + SMK

7 Sahirul Alim

MSD

Ilham S-Marzel P.

Excavator , support equipment, Defect Elimination of


Cat789&EH4500

0.2
Intangible

1.6
3.0
3.6
Intangible
Intangible

8.4

Total Projects

BATCH-1 : August 2014 - Feb 2015


CI Academy

Divisi Asal Mentor

Project Task

1 Adi Setyo Utomo


2 Raymond Lasor Bosar Ritonga

MSD
MSD

Untung S
Untung S

Mews Performance Improvement


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

Liebherr T282 360 HSES


T = 32 Units

7 Wahyu Wardana

Kris Pranoto+Ambara Rehabilitation Quality Improvement


35

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
Liebherr T282 360 T = 32 Units

END of Presentation
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