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Holcim Annual Technical Report 2002 - HARP Indicator Definitions

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ATR 2002 Line Indicator

1 7.3.8.2 Raw Material Extraction Volume


32 7.3.8.3 Raw Material Preparation Volume
68 7.3.8.4 Raw Meal Preparation Volume
175 7.3.8.5 Clinker Production Volume
216 7.3.8.6 Clinker Purchased / Transferred
700 7.3.8.7 Cement Production Volume
559 Cement Grinding Volume
741 7.3.8.8 Cement Purchased / Transferred
742 7.3.8.9 Mineral Components Purchased / Transferred
805 7.3.8.11 Standard Clinker Capacity Volume
808 7.3.8.12 Standard Cement Capacity Volume
338 7.3.8.16 Specific Thermal Energy Consumption up to and including Clinker Production
340 7.3.8.17 Specific Thermal Energy Consumption Cement Grinding
735 7.8.9.2 Clinker Shipped
734 7.8.9.3 Cement Shipped
731 8.2.2.1 Clinker Factor Production
786 8.2.2.4 Personnel Productivity
756 8.2.2.6 Specific Electric Energy Consumption up to and including Clinker Production
757 8.2.2.7 Specific Electric Energy Consumption Cement Grinding
758 8.2.2.8 Specific Electric Energy Consumption Cement
775 8.2.9.1 Own Personnel
768 Up to and including 'Cement Grinding' ( = Production)
774 Shipping Station
776 8.2.9.2 Subcontracted Personnel
768 Up to and including 'Cement Grinding' ( = Production)
774 Shipping Station
793 8.2.9.3 Accidents with Time Lost
801 Frequency Rate
802 Severity Rate

336 8.2.2.9 Specific Thermal Energy Consumption Kiln


224 8.2.2.11 Thermal Economic Equivalent, TEE
252 8.2.2.12 Thermal Substitution Rate, TSR
246 8.2.2.14 Availability Index (Gross)
247 8.2.2.14 Availability Index (Net)
240 8.2.2.15 Production Rate Index [by BDP]
249 8.2.2.16 Net Overall Equipment Efficiency, Net OEE
248 8.2.2.17 Gross Overall Equipment Efficiency, Gross OEE
250 8.2.2.18 Mean Time Between Failures, MTBF

726 8.2.2.13 Coefficient of Variation of Cement Mortar Strength

726 8.2.2.13 Coefficient of Variation of Cement Mortar Strength (cont.)


7.3.8.2 Raw Material Extraction Volume (t)

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.2 Raw Material Extraction Volume (t)

Description
This indicator corresponds to the quantity of raw material mined / extracted
and transported from the quarry to raw material preparation or other process
steps. HTC Code 100-TEXTR-RAW.

Reference to Process
This indicator refers to:

Main cost center 'Raw Material Extraction'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure actual quantity of raw material mined / extracted and
transported.
This indicator is the basis for measuring productivity, and is also needed to
elaborate specific production cost of the main cost center.

Calculation
This volume reflects the raw material mined / extracted and transported
directly to the crusher and / or to the stockpile at crusher area and also to
other process steps (cost centers) (see diagram below). The measurement
of the volume is made with feed belt scales or similar devices, e.g. in raw
material preparation process. If no such measuring system is available, the
extracted quantity of raw material can be calculated by counting the truck
loads and / or front end loader shovel loads multiplied by typical loading-
weight (determined weight of samples confirmed by bridge scales). The
water content of the raw material is included. Other purchased raw materials
must be weighed at the factory gate with bridge scales, however these
volumes are not considered in this process step, they will be reflected in the

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7.3.8.2 Raw Material Extraction Volume (t) 2o3

main cost center 'Raw Material Preparation'. Volumes sold out of this
process step will not be included in the calculation.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X
Year to Date (month) X X
12-Month Rolling

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


If this activity is outsourced, the valid volume is the one specified in the
invoice and is included in the calculation if fed to the crusher or used in other
process steps. The costs for extraction are reflected in the type of cost
'Outsourced Quarry Activities' in the cost center 'Raw Material Extraction'.
Volumes transported to other process steps after 'Raw Material Preparation'
are included (e.g. high grade limestone consumed in the process step (main
cost center) 'Cement Production'. (1C of diagram below)).

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7.3.8.3 Raw Material Preparation Volume (t)

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.3 Raw Material Preparation Volume (t)

Description
This indicator measures the quantity of raw material produced in the raw
material preparation process, for example crushing and homogenizing. HTC
Code 200-TPROD -RM.

Reference to Process
This indicator refers to:

Main cost center 'Raw Material Preparation'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the actual volume of raw material produced.
This indicator is the basis for measuring productivity, and is also needed to
elaborate specific production cost of the main cost center.

Calculation
The total volume corresponds to own mined / extracted raw material fed to
the crusher (or other size reduction equipment) and other raw materials
purchased and processed (e.g. correctives, alternatives and traditional raw
materials) in the process step, to be used internally for clinker and / or
cement production.

The measurement of the volume is made with belt scales or similar devices
in the crushing process and / or before the storage pile. The water content of
the raw material is included. The calibration of the belt scales have to be
confirmed by sampling the material flow on to trucks and by confirming the
weight by bridge scales and by audits of inventories at least once per year.
Volumes sold leaving this process step will not be included in the

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7.3.8.3 Raw Material Preparation Volume (t)

calculation.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


The total quantity of raw material corresponds to the total of all lines in
operation. It is necessary to elaborate more than one indicator if two or more
preparation plants operate in one production line, e.g. different materials.
Raw material prepared within the process step (cost center) to be
transported to other process steps has to be included. Gypsum crushed
from an own quarry has to be included.

Example
A company purchases marl and clay and feeds them - together with the
limestone from the own quarry - into the first crusher, the volume of the
purchased material are reflected in the cost center 'Raw Material
Preparation'. The costs of the purchased material (marl and clay) have also
to be reflected in 'Raw Material Preparation'.

Version: 10 Last Modified by Keith


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7.3.8.4 Raw Meal Preparation Volume (t)

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.4 Raw Meal Preparation Volume (t)

Description
This indicator corresponds to the quantity of raw meal produced in the raw
meal preparation process, for example grinding mills of all production units
in operation. The quantity calculated contains all raw meal types. HTC Code
300-TPROD -RAMEAL.

Reference to Process
This indicator refers to:

Main cost center 'Raw Meal Preparation'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the actual volume of raw meal prepared. This indicator is the
basis for measuring productivity, and is also needed to elaborate specific
production cost of the main cost center.

Calculation

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7.3.8.4 Raw Meal Preparation Volume (t)

The produced quantity of meal can be calculated by the total of the materials
fed minus material humidity. In this case the quantities of the materials fed
have to be measured by feed belt scales or similar devices. In the
production process limestone, marl clay and similar are ground together with
correctives and alternative raw materials and / or mixed together.

Correctives are high-grade limestone, kaolin, iron ore, silica sand, alumina
ore and alternative raw materials can be slag, fly ash, waste glass, etc.

For all processes (e.g. dry, semi dry, semi wet, wet) the water content of the
raw-meal / slurry is not included. The raw meal produced is determined by
raw material fed to the system minus the loss of moisture.

Volumes of raw meal, filler, etc. sold leaving this process step will not be
included in the calculation of the indicator.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

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7.3.8.4 Raw Meal Preparation Volume (t)

Comments and Examples


The total quantity corresponds to the total of all mills and or mixer lines in
operation and / or different raw meal types.

Version: 9 Last Modified by Keith


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7.3.8.5 Clinker Production Volume (t)

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.5 Clinker Production Volume (t)

Description
This indicator corresponds to the actual quantity of clinker produced in
clinker production process, for instance kilns of all operating production
units. The quantity calculated comprises all clinker types as well as off
specification clinker. HTC Code 400-TPROD-CLINKE.

Reference to Process
This indicator refers to:

Main cost center 'Clinker Production'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the actual volume of clinker produced.
This indicator is the basis for measuring productivity, and is also needed to
elaborate specific production cost of the main cost center.

Calculation

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7.3.8.5 Clinker Production Volume (t)

The raw meal / clinker factor corresponds to the mass reduction during the
burning process (raw meal fed to the kiln minus humidity, removal of
structural water, de-carbonization, dust loss in long kilns and by-pass). It lies
typically between 55% and 65%, for instance in order to fabricate 1 ton of
clinker, 1.55 to 1.65 tons of raw meal are needed (up to 1.8 tons for wet or
by-pass operation).

If the volume of clinker manufactured is calculated by using the raw meal /


clinker ratio, then this factor has to be verified periodically by comparing the
inventories of the raw meal and the clinker volume feed to the clinker
storage. The latter can be measured by sampling the material flow on to
trucks and confirming the weight by bridge scales (at least during 12 hours).

The volume is measured by belt scales or gamma-ray devices after the


clinker cooler and before the clinker storage installation. If no such
measuring system is available, the produced quantity of clinker can be
calculated by taking the volume of raw meal feed to the kiln as a base. The
raw meal feed to the kiln is measured by weighing device either being a belt
scale, flow meter or similar. An empirically elaborated raw meal / clinker
factor is used to calculate the actual volume of clinker.

The calibration of the raw meal feeding weighing device and the
confirmation of the raw meal / clinker factor has to be done by internal
inventory audits. If differences of volumes determined physically and
inventories calculated are above 5%, then the measuring or weighing
devices must be re-calibrated. Inventory audits should be done once a
month. The kiln feed can be calibrated by re-circulating the flow through the
weigh bin (loss-in-weight method).

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples

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7.3.8.5 Clinker Production Volume (t)

Off specification clinker is the quantity of clinker produced, which does not
comply with the internal quality standard. The total quantity corresponds to
the total of all kiln lines in operation and different clinker types.

Clinker kiln dust volumes used in cement grinding or shipped should not be
included in the clinker production volume.

Raw meal inputs reflects kiln feed.

Version: 11 Last Modified by Keith


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7.3.8.6 Clinker Purchased / Transferred (t)

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.6 Clinker Purchased / Transferred (t)

Description
This indicator calculates the actual volume of clinker purchased / transferred
from another Group company or third party or transferred from another plant
into the reporting plant. HTC Code 400-TPURTR-CLINKE.

Reference to Process
This indicator refers to:

Product sub-segment clinker and cement


Product sub-segment trading cementitious materials
Product segment cementitious materials

Purpose
To measure the actual volume of purchased / transferred clinker as an
indicator of (e.g. shortage in clinker production)

Calculation
On plant level Clinker purchased / transferred must be determined
separately for:

Purchased from another Group companies and third party companies


Transferred from other plants (inter-unit production), within the Group
company

On sub-segment level Clinker purchased / transferred must be determined


for the purchased from Group companies and third party companies

Purchased from Group companies and third party companies

The volume of clinker purchased / transferred is equal to the one on the

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7.3.8.6 Clinker Purchased / Transferred (t)

invoice and can be confirmed by weighing it on the bridge scales at the


factory gate.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


If the invoice is only available after a certain time, the bill of lading or
measurement, for example a weighing bridge, can be used (see Cement
Purchased / Transferred).

In general a company does not distinguish in clinker inventory between own


produced clinker and purchased clinker. Due to this, the inventory
movement of purchased / transferred clinker cannot always be determined.

Transferred is always considered as transferred in, from the point of view of


the receiving plant.

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7.3.8.6 Clinker Purchased / Transferred (t)

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7.3.8.7 Cement Production Volume (t)

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7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.7 Cement Production Volume (t)

Description
This indicator corresponds to the quantity of cement produced with grinding
mills and / or mixers (blenders) of all production units in operation. The
quantity accounted contains all cement types. HTC Code 500-TPROD-CEM.

Reference to Process
This indicator refers to:

Main cost center 'Cement Grinding'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the actual volume of cement produced. This indicator is the
basis for calculating efficiency indicators (e.g. productivity, electric energy
consumption) and is also needed to elaborate specific production cost of the
main cost center.

Calculation

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7.3.8.7 Cement Production Volume (t)

Cement production volume is calculated by the total of the materials fed to


mill (minus material moisture) and additional volumes blended (e.g.includes
MIC consumed at plant but not cement purchased / transferred consumed).

Cement purchased / transferred is only included if it is fed to the cement mill


and ground with a relevant change in finess.

Inventory audits should be done once a month and compared with the actual
production volumes. If physical inventory varies more than 5% from the
calculated inventory based on the production volume, then the measuring or
weighing devices must be re-calibrated.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in

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7.3.8.7 Cement Production Volume (t)

the HMR.

Comments and Examples


The production volume will not coincide with the volume of cement shipped
from the shipping station at plant, because the inventory at the silos or
similar storage installations at the cement manufacturing plant can vary.

Note that cement Grinding volume corresponds to the quantity of cement


ground in cement grinding process steps, for instance grinding mills of all
production units in operation. The quantity accounted contains all cement
types This volume is basis for measuring productivity and efficiency of
cement mills.

This diagram shows an example where cement is produced and additional


materials are blended after cement grinding. For this example we can
determine that:

Cement Grinding volume equals 110,000 tons (99,000t + 6,000t+ 5,000t)


Cement Production volume equals 132,000 tons (110,000t + 15,000t +
7,000t)

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7.3.8.7 Cement Production Volume (t)

Note that by-products are products and sevices incidental to the main
products sold. These are not included into the cement production volume.
(E.g. if 1,000t of high grade limestone ground in a cement mill is sold, than
the Cement Production Volume = 131,000 tons (110,000t - 1,000t + 15,000t
+ 7,000t).

Version: 15 Last Modified by Keith


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7.3.8.8 Cement Purchased / Transferred (t)

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7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.8 Cement Purchased / Transferred (t)

Description
This indicator calculates the actual volume of all types of cement
purchased / transferred from another Group companies or third parties or
transferred from another plant into the reporting plant.

It also includes any blended cement according to the definition of the


content of the product sub-segment clinker and cement.

HTC Code 500-TPURTR-CEM.

Reference to Process
This indicator refers to:

Product sub-segment clinker and cement


Product sub-segment trading cementitious materials
Product segment cementitious materials

Purpose
To measure the actual volume of purchased/transferred cement (e.g.
shortage in clinker production or cement grinding capacity).

Calculation
On plant level cement purchased / transferred must be determining
separately for:

Purchased from another Group companies and third party companies


Transferred from other plants (inter-unit production) within the Group
company

On sub-segment level cement purchased / transferred must be determined

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7.3.8.8 Cement Purchased / Transferred (t)

purchased from Group companies and third party companies

Purchased from Group companies and third party companies

The volume of cement purchased/transferred is equal to the one on the


invoiced.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


If the invoice is only available after a certain time, the bill of lading or the
measurement, for example a weighing bridge, can be used. The binding
volume is the one on the invoice. Special, blended and white cements are
included. Transferred is always considered as transferred in, from the point
of view of the receiving plant.

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7.3.8.8 Cement Purchased / Transferred (t)

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7.3.8.9 Mineral Components Purchased/Transferred (t)

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7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.9 Mineral Components Purchased/Transferred (t)

Description
This indicator calculates the actual volume of mineral components
purchased / transferred from another Group company or third party or
transferred from another plant into the reporting plant. HTC Code T00-
TPURTR-MIC.

Reference to Process
This indicator refers to:

Main cost centers 'Cement Grinding', and 'Shipping Station'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the actual volume of purchased / transferred mineral
components.

Calculation
On plant level mineral components purchased / transferred must be
determined separately for:

Purchased from another Group companies and third party companies


Transferred from other plants (inter-unit production), within the Group
company

On sub-segment level mineral components purchased / transferred must be


determined for purchase from Group companies and third party companies

Purchased from Group companies and third party companies

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7.3.8.9 Mineral Components Purchased/Transferred (t)

The volume of mineral components purchased / transferred is equal to the


one invoiced.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X
Year to Date (month) X
12-Month Rolling

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


If the invoice is only available after a certain time, the bill of lading or the
measurement, for example a weighing bridge, can be used. The binding
volume is the one on the invoice. Transferred is always considered as
transferred in, from the point of view of the receiving plant.

For 'Mineral Components and Other Cementitious Materials' sub-segments,


see 'Mineral Components Purchased / Transferred'. Mineral components are
defined as cement constituents which are not derived from clinker
production (main cost center) including limestone, when used as additive in
cement production.

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7.3.8.9 Mineral Components Purchased/Transferred (t)

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7.3.8.11 Standard Clinker Capacity Volume (t/year) [by BDP]

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7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.11 Standard Clinker Capacity Volume (t/year) [by


BDP]

Description
This indicator corresponds to the quantity of clinker that can be produced
with a standard target OEE of 85% in function of BDP. The quantity
calculated contains all clinker types. HTC Code 400-TPYSTD-CLINKE.

Reference to Process
This indicator refers to:

Main cost center 'Clinker Production'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To describe the actual maximum quantity of clinker which can be produced
during a 12-month period in the main cost center 'Clinker Production'.

Calculation
The standard clinker capacity of a kiln is calculated as follows:

Standard clinker capacity (t/year) = BDP (t/day) x 365 days x 85%

BDP Best Demonstrated Practice of a kiln, measured in tons per day


(t/day) = (see Production Rate Index).
The 85% stands for the standard target OEE.

If several kilns are installed in a plant the individual standard clinker


capacities have to be summed up.

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7.3.8.11 Standard Clinker Capacity Volume (t/year) [by BDP]

Reporting
This indicator must be reported and reviewed on a yearly basis.

Comments and Examples


Each plant defines the standard clinker capacity volume once per year,
during the budgeting process.

Equipment which were idle during the last 12 months and are not planned to
be used in the future 5 years according to the business plan do not have to
be considered.

Version: 10 Last Modified by Keith


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7.3.8.12 Standard Cement Capacity Volume (t/year) [by BDP]

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7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.12 Standard Cement Capacity Volume (t/year) [by


BDP]

Description
This indicator corresponds to the quantity of cement that can be produced in
cement grinding with a standard target OEE of 85% in function of BDP. The
quantity calculated contains all cement types. 500-TPYSTD-CEM.

Reference to Process
This indicator refers to:

Main cost center 'Cement Grinding'


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To describe the actual maximum quantity of cement which can be produced
during a 12-month period in the process of the main cost center 'Cement
Grinding'.

Calculation
The standard cement capacity of a mill is calculated as follows:

Standard cement capacity (t/year) = BDP (t/h) x 24 hours x 365 days x 85%

BDP (t/h) Best Demonstrated Practice of a cement mill, measured in tons


= per hour (see Production Rate Index).
The 85% stands for the standard target OEE.

If several mills are installed in a plant the individual standard cement


capacities have to be summed up.

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/2b6... 03.12.2002
7.3.8.12 Standard Cement Capacity Volume (t/year) [by BDP]

Reporting
This indicator must be reported and reviewed on a yearly basis.

Comments and Examples


Each cement plant defines the standard cement capacity volume once per
year, during the budgeting process.

Equipment which were idle during the last 12 months and are not planned to
be used in the future 5 years according to the business plan do not have to
be considered.

Example for three products ground in one cement mill:

Type I Type Type Total


II III
BDP t/h 76.00 80.00 65.00
Operating Time h 2,166.00 2,099.00 2,185.00 6,450.00
(December YTD)
Standard Target OEE % - - - 85
Standard Cement t 547,842.05
Capacity

Standard (76 *2,166 + 80*2,099 +


Cement 65*2,185)
Capacity (t/year) -------------------------------- t/h * 24h * 365 = 547,842 (t/year)
= ------------------ * 85%
6,450
Version: 10 Last Modified by Keith
Cameron/HGRS/Holcim on
11/15/2002

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7.3.8.16 Specific Thermal Energy Consumption up to and including Clinker Productio...

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.16 Specific Thermal Energy Consumption up to


and including Clinker Production (MJ/t clin)

Description
This indicator measures the amount of thermal energy consumed in all
process steps up to clinker production in order to produce one ton of clinker.
It includes drying raw material in the raw material preparation and/or raw
meal preparation as well as drying and preheating of fuels in the clinker
production. HTC Code L00-MJTUP -CLINKE.

Reference to Process
This indicator refers to:

Main cost centers up to and including 'Clinker Production'


Product sub-segment clinker and cement
Product segment cementitious materials

It includes 70% of plant auxiliaries directly linked to the manufacturing


process (see definitions).

Purpose
To measure the efficiency of thermal energy used in raw material extraction,
raw material preparation, raw meal preparation and clinker production.

Calculation

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7.3.8.16 Specific Thermal Energy Consumption up to and including Clinker Productio...

Thermal energy consumption is determined by multiplication of the volumes


of fuels measured with the specific net calorific value of the fuels. The net
calorific value can be determined in own laboratory, by third parties, by
literature reference or consider the one specified on the invoice. If measured
by coal or coke samples taken from the burner and in case of heating by
exhaust gases in the coal mill, the measurements after the mill have to be
considered. In case of coal mill the net calorific value has to be determined
with samples at the burner pipe.

It is to be allocated according to measuring systems by:

All main cost centers up to and including 'Clinker Production'


Individual pre-process cost centers up to and including 'Clinker
Production'
70% of the auxiliary cost centers

If measuring systems are not available at all or for individual cost centers,
the allocation of the energy consumption has to be estimated.

Reporting

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7.3.8.16 Specific Thermal Energy Consumption up to and including Clinker Productio...

This indicator must be reported and reviewed on a monthly basis and in


annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month)
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


Measuring errors must be allocated to the auxiliary cost centers.

Sales of thermal energy to third party are excluded.

In the raw meal preparation the thermal energy consumption corresponds to


the total energy of all types of fuel fired in the auxiliary furnace for drying
purpose and does not include heat recovery from kiln exhaust gases and /
or from cooler exhaust air.

Version: 10 Last Modified by Keith


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11/15/2002

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7.3.8.17 Specific Thermal Energy Consumption Cement Grinding (MJ/t cem)

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7 Management Accounting
7.3 Clinker and Cement Production
7.3.8 Volumes

7.3.8.17 Specific Thermal Energy Consumption Cement


Grinding (MJ/t cem)

Description
This indicator is a measure of the amount of thermal energy consumed in
cement grinding, to produce one ton of cement. This includes drying
gypsum, additives and mineral components in the cement grinding process.
HTC Code 500-MJT-CEM.

Reference to Process
This indicator refers to:

Main cost center 'Cement Grinding'


Product sub-segment clinker and cement
Product segment cementitious materials

It includes 30% of plant auxiliaries directly linked to the manufacturing


process (see definitions).

Purpose
To measure the efficiency of thermal energy used in cement grinding.

Calculation

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7.3.8.17 Specific Thermal Energy Consumption Cement Grinding (MJ/t cem)

The thermal energy consumption is determined by multiplication of the


volumes of fuels measured with the specific net calorific value of the fuels.
The net calorific value can be determined in own laboratory, by third parties,
by literature reference or by the one specified on the invoice.

It is to be allocated according to measuring systems by:

Main cost center 'Cement Grinding'


Individual pre-process cost centers linked to main cost centers 'Cement
Grinding'
30% of the auxiliary cost centers

If measuring systems are not available at all or for individual cost centers,
the allocation of the invoiced energy consumption has to be estimated.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month)

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7.3.8.17 Specific Thermal Energy Consumption Cement Grinding (MJ/t cem)

12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


Measuring errors must be allocated to the auxiliary cost centers.

Sales of thermal energy to third party are excluded.

The thermal energy consumption corresponds to the total energy of all types
of fuel fired in the auxiliary furnace for drying purpose and does not include
heat recovery from kiln exhaust gases and / or from cooler exhaust air.

Version: 9 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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7.8.9.2 Clinker Shipped (t)

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7 Management Accounting
7.8 Logistics and Distribution
7.8.9 Volumes

7.8.9.2 Clinker Shipped (t)

Description
This indicator corresponds to the volume of clinker shipped to own grinding
stations, plants and terminals (inter-unit) and to customers (outbound). HTC
Code 600-TSHIP-CLINKE.

Reference to Process
This indicator refers to:
Main cost center 'Shipping Station'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the actual volume of clinker prepared and loaded in
transportation equipment, in order to leave a shipping station (plant, terminal
or warehouse).

Calculation
Shipped is the volume measured and registered on a bill of lading (own or
third party). It comprises both, volumes delivered and picked up.
Shipping does not include the activity of transshipment.

The measurement of the volume is made with weighing devices in the


loading process, by weighing the trucks/rail cars on bridge scales. For
waterway it can be calculated using the vessel calibration marks from
reading of draft survey.

The volume of clinker shipped is the sum of tonnage registered on bills of


lading over a defined period of time (for instance reporting period).

This indicator is distinguished and reported separately for:

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7.8.9.2 Clinker Shipped (t)

Inter-unit production transportation


Inter-unit distribution transportation
Outbound transportation

And for different transportation mode:


Road
Rail
Waterway

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants/


Sub-
Reporting Period segment
Monthly X X
Year to Date (month) X X
12 Month Rolling
* highlighted cells mean that the level and reporting period is requested in
the HMR.

When consolidated on any level, no eliminations are allowed.

Comments and Examples


The calibration of the scales or the measuring methods have to be
confirmed by audits of inventories. Bridge scales used for the measurement
of this volume have to be calibrated by third party or internally according to
local standards and regulations, minimum once a year.

Note that clinker purchased from third parties and shipped on our behalf
from their location is not included in the indicator, but must be tracked
independently for statistical purposes and the flow control.

Version: 7 Last Modified by Keith


Cameron/HGRS/Holcim

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7.8.9.3 Cement Shipped (t)

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7 Management Accounting
7.8 Logistics and Distribution
7.8.9 Volumes

7.8.9.3 Cement Shipped (t)

Description
This indicator corresponds to the volume of cement shipped from the
shipping station to other plants, shipping stations such as terminals and
warehouses (inter-unit) and to customers (outbound). HTC Code 600-
TSHIP-CEM.

Reference to Process
This indicator refers to:
Main cost center 'Shipping Station'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the volume of cement prepared and loaded in transportation
equipment, in order to leave a shipping station (plant, terminal or
warehouse).

Calculation
Shipped is defined as the volume measured and registered on a bill of
lading (own or third party). It comprises both, volumes delivered and picked
up.
Shipping does not include the activity of transshipment.

Cement shipped using road or railway is measured either by number of bags


multiplied by the average weight per bag or by weighing the trucks/rail cars
on bridge scales. For waterway it can be calculated using the vessel
calibration marks from reading of draft survey.

This indicator is distinguished and reported separately for:


Inter-unit production transportation

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7.8.9.3 Cement Shipped (t)

Inter-unit distribution transportation


Outbound transportation

for different transportation modes:


Road
Rail
Waterway

and for packaging modes:


Bulk
Bagged

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants/


Sub-
Reporting Period segment
Monthly X X
Year to Date (month) X X
12 Month Rolling
* highlighted cells mean that the level and reporting period is requested in
the HMR.

When consolidated on any level, no eliminations are allowed.

Comments and Examples


Cement shipped volume has to be confirmed by audits comparing the
volume of the inventories. Bridge scales used for the measurement of this
volume have to be calibrated by third party or internally according to local
standards and regulations, minimum once a year.

Note that cement purchased from third parties and shipped on our behalf
from their location is not included in the indicator, but must be tracked
independently for statistical purposes and the flow control.

Version: 8 Last Modified by Keith


Cameron/HGRS/Holcim

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/69c... 03.12.2002
8.2.2.1 Clinker Factor Production (%)

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8 Holcim Performance Indicators


8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.1 Clinker Factor Production (%)

Description
This indicator corresponds to the clinker contained in the cement production
volume. HTC Code 500-CF-CEM.

Reference to Process
This indicator refers to:
Main cost center 'Cement Grinding'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the percentage of clinker in cement produced at plant level.

Calculation

The clinker content of cement purchased / transferred cement consumed in


'cement grinding' process step, is not considered for the calculation of this
indicator as the volume of the cement purchased/transferred is also not
considered in Cement Production Volume.

As an exception from the general rule, only if the purchased/transferred


cement is ground again in the receiving plant with a relevant increase in

https://web.holcim.com/harp/harp-man.nsf/vwPrintManual/99E439EAF266AFCAC12... 03.12.2002
8.2.2.1 Clinker Factor Production (%)

finesse then the volume and the clinker content of this cement has to be
considered. (Cement Production Volume). The clinker content of the
transferred cement must be eliminated on sub-segment (all plants) level
consolidation.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


In case the clinker content of the purchased cement consumed is unknown,
it is up to the Group company to determine it as accurately as possible or to
make usage of the standard content of clinker as expressed in the norms.

https://web.holcim.com/harp/harp-man.nsf/vwPrintManual/99E439EAF266AFCAC12... 03.12.2002
8.2.2.1 Clinker Factor Production (%)

This factor is different for each cement type and should therefore be
calculated for each cement type at plant and on company level. This factor is
used to calculate specific cost of clinker production in terms of cement
produced (LC/t). For reporting purposes the overall clinker factor production
per plant and all plants has to be considered. This indicator does not
consider volumes blended after cement grinding, (e.g. in Shipping Station.)

The clinker factor production is 99,000t clinker / 132,000t cement = 75 %

Version: 11 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.4 Personnel Productivity (man h/t)

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8 Holcim Performance Indicators


8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.4 Personnel Productivity (man h/t)

Description
This indicator is a measure of the total worked and paid hours including paid
overtime to produce one ton (at the related stage of production), by own and
subcontracted personnel. HTC Code C00-MANHT-CEM.

Reference to Process
This indicator refers to:
All main cost centers up to and including 'Cement Grinding'
Sub-segment clinker and cement
Segment cementitious materials

Purpose
To measure the efficiency of own and subcontracted personnel working in
the plant.

Calculation

The calculation for the man h/t cem should be done according to the cost
per ton calculation philosophy as shown in the example attached.

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8.2.2.4 Personnel Productivity (man h/t)

Note that in the case of central workshops for repairs and maintenance labor
hours and costs are directly allocated to the respective cost centers where
the work was performed. The supervisors hours are accounted with the
auxiliaries hours.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants/


Sub-
Reporting Period

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8.2.2.4 Personnel Productivity (man h/t)

Segment
Monthly
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


It is compulsory to take both worked and paid hours into account. Overtime
hours not paid are not included. Worked and paid hours (including overtime
hours paid) are also used to calculate the indicators related to accidents but
are not used to determine any other indicator.

When measuring personnel productivity across more than one plant, a


specific calculation should be used:

Version: 11 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.6 Specific Electric Energy Consumption up to and including Clinker Production ...

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.6 Specific Electric Energy Consumption up to and


including Clinker Production (kWh/tclin)

Description
This indicator measures the amount of electric energy consumed in all
process steps up to clinker production in order to produce one ton of clinker.
HTC Code 400-KWHTUP-CLINKE.

Reference to Process
This indicator refers to:

All main cost centers up to and including 'Clinker Production'


Product sub-segment clinker and cement
Product segment cementitious materials

It includes 70% of plant auxiliaries directly linked to the manufacturing


process and allocated to clinker production (see definitions).

Purpose
To measure the efficiency of electric energy used in clinker production.

Calculation
The consumption of the electrical energy invoiced by the supplier and / or
measured at the generator in case of energy produced at the plant, has to
comply with the cost center boundaries defined. It is to be allocated
according to measuring systems by:

Individual main cost centers up to 'Cement Grinding'


Individual pre-process cost centers
Auxiliary cost centers

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/087... 03.12.2002
8.2.2.6 Specific Electric Energy Consumption up to and including Clinker Production ...

If measuring systems are not available at all or for individual cost centers,
the allocation of the invoiced energy consumption has to be estimated
based on installed motor power (including all power consuming installations,
for instance lighting) per cost centers of those motors, which are normally in
use. In case of co-generation the generated energy is included.

The following calculation automatically takes into consideration

Clinker purchased, sold and / or transferred


Extracted and prepared raw materials sold or transferred to other sub-
segments

For the calculation of this indicator see also 'Specific Electric Energy
Consumption Cement'.

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/087... 03.12.2002
8.2.2.6 Specific Electric Energy Consumption up to and including Clinker Production ...

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month)
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


Power losses and measuring errors should be allocated to the auxiliary cost
centers.

The binding quantity for reconciliation is the total one invoiced by the
supplier and/or measured by the generator in case of energy produced at
the plant. The shipping station at plant and third party consumption are
excluded.

Version: 10 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/087... 03.12.2002
8.2.2.7 Specific Electric Energy Consumption Cement Grinding (kWh/tcem)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.7 Specific Electric Energy Consumption Cement


Grinding (kWh/tcem)

Description
This indicator is a measure of the amount of electrical energy consumed in
cement grinding, to produce one ton of cement. HTC Code 500-KWHT-
CEM.

Reference to Process
This indicator refers to:

Main cost center 'Cement Grinding'


Product sub-segment clinker and cement
Product segment cementitious materials

It includes 30% of plant auxiliaries directly linked to the manufacturing


process and allocated to main cost center 'Cement Grinding' (see definition).

Purpose
To measure the efficiency of electric energy used in cement grinding.

Calculation
The consumption of the electrical energy invoiced by the supplier and / or
measured at the generator in case of energy produced at the plant, has to
comply with the cost center boundaries defined. It is to be allocated
according to measuring systems by:

Main cost center 'Cement Grinding'


Individual pre-process cost centers
Auxiliary cost centers

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8.2.2.7 Specific Electric Energy Consumption Cement Grinding (kWh/tcem)

If measuring systems are not available at all or for individual cost centers,
the allocation of the invoiced energy consumption has to be estimated
based on installed motor power (including all power consuming installations,
for instance lighting) per cost centers of those motors, which are normally in
use. In case of co-generation the generated energy is included.

For the calculation of this indicator see also 'Specific Electric Energy
Consumption Cement.'

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/abc... 03.12.2002
8.2.2.7 Specific Electric Energy Consumption Cement Grinding (kWh/tcem)

Level Plant All Plants /


Reporting Period Sub-
Segment
Monthly X X
Year to Date (month)
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


Power losses and measuring errors should be allocated to the auxiliary cost
centers.

The binding quantity for reconciliation is the total one invoiced by the
supplier and / or measured by the generator in case of energy produced at
the plant. The shipping station at plant and third party consumption are
excluded.

Version: 10 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/abc... 03.12.2002
8.2.2.8 Specific Electric Energy Consumption Cement (kWh/t cem)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.8 Specific Electric Energy Consumption Cement


(kWh/t cem)

Description
This indicator measures the total amount of electric energy consumed in
order to produce one ton of cement. HTC Code 500-KWHTUP-CEM.

Reference to Process
This indicator refers to:

ll main cost centers up to and including 'Cement Grinding'


Product sub-segment clinker and cement
Product segment cementitious materials

This indicator includes plant equipment directly linked to the manufacturing


process including auxiliaries (see definitions).

Plant services outside the factory premises are excluded.

Purpose
To measure the efficiency of electric energy used in cement production.

Calculation
The consumption of the electrical energy invoiced by the supplier and / or
measured at the generator in case of energy produced at the plant, has to
comply with the cost center boundaries defined. It is to be allocated
according to measuring systems by:

Individual main cost centers up to 'Cement Grinding'


Individual pre-process cost centers
Auxiliary cost centers

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8.2.2.8 Specific Electric Energy Consumption Cement (kWh/t cem)

If measuring systems are not available at all, or for the individual cost
centers, the allocation of the invoiced energy consumption has to be
estimated based on installed motor power (including all power consuming
installations, for instance lighting) per cost center of those motors which are
normally in use. In case of co-generation the generated energy is included.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment

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8.2.2.8 Specific Electric Energy Consumption Cement (kWh/t cem)

Monthly X X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


This calculation has also to be applied when a plant sells or transfers clinker
to other companies or third parties.

Power losses and measuring errors should be allocated to the auxiliary cost
centers.

The binding quantity for reconciliation is the total one invoiced by the
supplier and / or measured by the generator in case of energy produced at
the plant. The shipping station at plant and third party consumption are
excluded.

Additionally, if the plant manager is responsible for the shipping station at


plant, the consumption of electric energy of the shipping station must be
determined separately.

The electric energy consumption has to be disclosed in:

Specific Electric Energy Consumption up to and including Clinker


Production (kWh/tcem)
Specific Electric Energy Consumption Cement Grinding (kWh/tcem)

Version: 11 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.9.1 Own Personnel (FTE)

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8.2 Technical Indicators
8.2.9 General Indicators

8.2.9.1 Own Personnel (FTE)

Description
This indicator measures the number of full time equivalents on the payroll.
Part time employees, employees hired or leaving are converted to
equivalent of full time employees.

HTC Codes:

C00-FTEO-CEM (for the sub -segment clinker and cement)


C00-TEO -AGGR (for the sub-segment aggregates)
C00-FTEO-RMC (for the sub -segment ready-mix concrete)
700-FTEO (for the the main function distribution)

Reference to Process
The indicator refers to:

All cost centers of production and distribution


All support processes (corporate manufacturing, corporate logistics,
marketing and sales, administration)
All product sub-segments
All product segments

For example within clinker and cement production, number of own personnel
must be reported as follow:

All Corporate
Production Manufacturing
Cost
Centers
Plant X
All Plant Level X

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8.2.9.1 Own Personnel (FTE)

Clinker and Cement X X


Cementitious X X
Materials
Company X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

The reference to process for own personnel (FTE) for the clinker and
cement production is all main cost centers up to and including 'Cement
Grinding' (and the related auxiliary and pre-process cost centers)

The reference to process for own personnel (FTE) for the aggregates
production is all main cost centers up to and including 'Processing' (and the
related auxiliary and pre-process cost centers)

Purpose
The indicator measures the full time equivalent (FTE) personnel assigned to
functions and tasks.

Calculation

One FTE corresponds to a full time working employee (regardless of the


number of worked hours per day, overtime, vacation, sick time, training time,
apprentices and union meeting).

The degree of utilization is calculated as follows:

For persons newly hired or leaving, calculations should be done prorata


temporis. This calculation applies also to subcontracted personnel (FTE)

For part time personnel the contractual time of working hours divided by the

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8.2.9.1 Own Personnel (FTE)

standard number of hours, as defined by the management, is taken into


account. If needed this contractual time has to be amended according to the
real situation.

Long term disability is considered for FTE calculations. Only when the
company has no more obligation to pay wages to the employee according to
local rules, such persons are no more included in the FTE calculation.

Reporting
The indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling
* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


Personnel assigned full time to capital expenditure projects which last longer
then 1 year are excluded from the calculation.

The number of own personnel of shipping station must be shown within


distribution.

Personnel assigned to the warehouse (spare parts) administration, IT


personnel assigned to the process control equipment, maintenance
personnel are included within production.

Own personnel (FTE) includes:


Personnel, who are sick, with a contract with the company, but receiving
money from an insurance
Apprentices and trainees
Student jobs during vacations on the payroll

But excludes:
Scholar program participants
Personnel with long-term disability according to local rules

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8.2.9.2 Subcontracted Personnel (FTE)

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8 Holcim Performance Indicators


8.2 Technical Indicators
8.2.9 General Indicators

8.2.9.2 Subcontracted Personnel (FTE)

Description
This indicator measures the number of full time equivalents personnel
working for the company but not on its payroll.

This personnel must fulfill all the three following criteria:


The company directly controls the worked hours
The persons are under direct responsibility and authority of own
supervisor
The persons fulfill the functions normally performed by own personnel with
our know-how

HTC Codes:

C00-FTES-CEM (for the sub-segment clinker and cement)


C00-FTES-AGGR (for the sub-segment aggregates)
C00-FTES-RMC (for the sub -segment ready-mix concrete)
700-FTES (for the the main function distribution)

Reference to Process
The indicator refers to:

All cost centers of production and distribution


All support processes (corporate manufacturing, corporate logistics,
marketing and sales, administration)
All product sub-segments
All product segments

For example within clinker and cement production, number of Subcontracted


Personnel must be reported as follow:

All Corporate

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8.2.9.2 Subcontracted Personnel (FTE)

Production Manufacturing
Cost
Centers
Plant X
All Plant Level X
Clinker and Cement X X
Cementitious X X
Materials
Company X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

The reference to process for subcontracted personnel (FTE) for the clinker
and cement production is all main cost centers up to and including 'Cement
Grinding' (and the related auxiliary and pre-process cost centers)

The reference to process for subcontracted personnel (FTE) for the


aggregates production is all main cost centers up to and including
'Processing' (and the related auxiliary and pre-process cost centers)

Purpose
This indicator describes the number of subcontracted personnel working in a
plant or other locations.

Calculation
This indicator must be determined for subcontracted personnel as done for
own personnel (FTE).

Reporting
The indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month
Rolling

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8.2.9.2 Subcontracted Personnel (FTE)

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


Subcontracted personnel assigned full time to capital expenditure projects
lasting longer than 1 year, are not included. Part time subcontracted
employees are converted to full time equivalent subcontracted personnel
(FTE).

The number of subcontracted personnel of shipping station must be


reported separately within distribution . Subcontracted personnel assigned
to the warehouse (spare parts) administration, IT subcontracted personnel
assigned to the process control equipment, subcontracted maintenance
personnel are included within subcontracted production.

Third Party Services


All personnel who are not own or subcontracted belong per definition to third
party services.

Third party personnel are:


Fulfilling functions with their own know-how
Under the direct responsibility and authority of third party supervisors
The company does not directly control the worked hours but pays for a
service or a product ( in most cases the scope of work is defined and
measured in units e.g. LC/ volume bagged).

Note that:
Outsourced personnel in quarry activity or driving subcontracted trucks
are not included (as subcontracted personnel)
Due to the specific nature of the subject, third party services should be
analyzed as a cost indicator (not as an FTE Human Resources indicator)

Version: 3 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.9.3 Accidents with Time Lost (#)

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8 Holcim Performance Indicators


8.2 Technical Indicators
8.2.9 General Indicators

8.2.9.3 Accidents with Time Lost (#)

Description
This indicator measures the number of accidents occurred in a plant,
shipping station or other locations, it counts only those accidents where the
injured was absent from work for one day, one shift or more. The indicator
includes total of own and subcontracted personnel.

HTC Codes:

C00-ACCTL -CEM (for the sub-segment clinker and


cement)
C00-ACCTL -AGGR (for the sub-segment
aggregates)
C00-ACCTL -RMC (for the sub-segment ready-mix
concrete)

Reference to Process
The indicator refers to:

All cost centers of production and distribution


All support processes (corporate manufacturing, corporate logistics,
marketing and sales, administration)
All product sub-segments
All product segments

For example within clinker and cement production, number of accidents with
time lost must be reported as follow:

All Corporate
Production Manufacturing
Cost
Centers

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8.2.9.3 Accidents with Time Lost (#)

Plant X
All Plant Level X
Clinker and Cement X X
Cementitious X X
Materials
Company X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Example: The reference to process for accidents with time lost (#) for clinker
and cement production is all main cost centers up to and including 'Cement
Grinding' (and the related auxiliary and pre-process cost centers).

Example: The reference to process for accidents with time lost (#) for
aggregates production is all main cost centers up to and including
'Processing' (and the related auxiliary and pre-process cost centers).

Purpose
To measure the industrial safety regarding own and subcontracted
personnel as part of the Group company social responsibility.

Calculation

Reporting

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8.2.9.3 Accidents with Time Lost (#)

The indicator must be reported and reviewed on a monthly basis and in


annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling
* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


This indicator allows better internal decisions in order to increase safety by
education, training, investments etc...

The number of accidents causing permanent disability or death is also


included. Not included in the indicator is the number of accidents to and
from work.

Additional safety indicators are:

Frequency Number of accidents with time lost multiplied by a million per


rate: worked and paid hours including overtime.
Severity rate: Number of days lost because of accidents with time lost
multiplied by a thousand per worked and paid hours including
overtime.

On an annual basis also the frequency and severity rate has to be


determined.

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8.2.9.3 Accidents with Time Lost (#)

The day of the accident is not counted.

As a standard for the Group for death or permanent disability casualties


during working time we take into consideration a lump value of 1 000 days
which must be added to the value of number of days lost for accidents for
severity rate. It is charged in full during the year in consideration.

Total number of accidents 4


- Disclosing those during work 2
- Disclosing those on the way to/from work 2
- Disclosing those with permanent disability or 0
death
Number of accidents Own Personnel 1
- Disclosing those during work 1
- Disclosing those on the way to/from work 0
Number of accidents Subcontracted 3
Personnel
- Disclosing those during work 1
- Disclosing those on the way to/from work 2
Worked and paid hours (h) Own and 188'100
Subcontracted Personnel
Number of days lost by accidents 25
Frequency rate:2*1'000'000/ 188'100 10,6
Severity rate:25* 1'000/ 188'100 0.13

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8.2.9.3 Accidents with Time Lost (#)

Note that with death casualty severity will be: (1,000 + 25)*1,000 / 188,100 =
5,45

Version: 3 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.9 Specific Thermal Energy Consumption Kiln (MJ/tclin)

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8 Holcim Performance Indicators


8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.9 Specific Thermal Energy Consumption Kiln


(MJ/tclin)

Description
This indicator measures the amount of thermal energy consumed in order to
produce one ton of clinker, not including energy consumption in fuel
preparation, drying of raw materials, raw meal preparation and preheating of
fuel. HTC Code 400-MJT-CLINKE.

Reference to Process
This indicator refers to:

Main cost center 'Clinker Production' without pre-process cost centers


Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the efficiency of thermal energy used in the kiln system.

Calculation

Reporting

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8.2.2.9 Specific Thermal Energy Consumption Kiln (MJ/tclin)

This indicator must be reported and reviewed on a monthly basis and in


annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


This indicator should be reviewed together with OEE (see 'Net Overall
Equipment Efficiency, OEE (%)', 'Gross Overall Equipment Efficiency, OEE
(%)' ) and clinker lime saturation.

Positive influences in order to minimize specific energy consumption:

Process optimization by, i.e. monitoring and improving burning processes,


minimizing false air input
Availability, less stoppages reduces downtime of equipment and plant can
run longer hours under optimum conditions
Specific Thermal Energy Consumption Kiln (MJ/t )
clin
Fuel MJ t MJ/t
clin clin
Kiln 1 Coal 96,750,000
Oil 29,250,000
Gas 16,650,000
Total Klin 142,650,000 45,000 3,170
1
Klin 2 Coal 93,500,000
Oil 0
Gas 25,000,000
Total Klin 118,500,000 35,700 3,320
2
Total Plant 261,150,000 80,700 3,236

SPECIFIC THERMAL ENERGY CONSUMPTION KILN

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8.2.2.9 Specific Thermal Energy Consumption Kiln (MJ/tclin)

(Mj/t)
))clin
Fuel MJ t MJ/t
clin clin
Kiln 1 Coal 96,750,000
Oil 29,250,000
Gas 16,650,000
Total Klin 142,650,000 45,000 3,170
1
Kiln 2 Coal 93,500,000
Oil 0
Gas 25,000,000
Total Klin 118,500,000 35,700 3,320
2
Total Plant 261,150,000 80,700 3,236

Thermal energy used in raw material preparation, auxiliary furnaces,


preheating of heavy fuel oil, etc. taken from other process steps is not
included. The thermal energy consumption is determined by multiplication of
the volumes of fuels measured with the specific net calorific value of the
fuels, given in MJ/ton.

Version: 9 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.11 Thermal Economic Equivalent, TEE (%)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.11 Thermal Economic Equivalent, TEE (%)

Description
This indicator describes the economic benefit derived from using alternative
fuel by showing the relationship between the fuel costs and the theoretical
fuel costs if no alternative fuels were used.

Reference to Process
Clinker production main cost center
Pre-process cost centers 'Traditional Fuels Preparation and Handling'
and 'Alternative Fuels Preparation and Handling' (at plant only)
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
This indicator measures the economic benefit of substituting traditional with
alternative fuel.

Calculation

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8.2.2.11 Thermal Economic Equivalent, TEE (%)

Note that A, B, C, D, E, F and G refer to the lines of the table shown in the
'Comments and Examples'.

Depreciation and amortization are not included.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

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8.2.2.11 Thermal Economic Equivalent, TEE (%)

Comments and Examples


This indicator includes the actual costs of the 'Traditional Fuels Preparation
and Handling' and 'Alternative Fuels Preparation and Handling' pre-process
costs centers (see 'Definitions'' of pre-process cost centers) and also the
compulsory sub-type of costs 'Traditional fuel' and 'Alternative fuel' within
main cost center 'Clinker Production').

The following table considers five examples of the TEE application:

If TEE is 100% the total fuel costs are equal to zero.

Version: 13 Last Modified by Lori Ma


Willi/HGRS/Holcim on 14.11.2002

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8.2.2.12 Thermal Substitution Rate, TSR (%)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.12 Thermal Substitution Rate, TSR (%)

Description
This indicator describes the relation of thermal energy consumption of
alternative fuels to the total amount of thermal energy consumption in the
kiln system. HTC Code 400-TSR -FUEL.

Reference to Process
This indicator refers to:
Main cost center 'Clinker Production' excluding pre-process cost centers
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
This indicator measures the degree of substitution of traditional by
alternative fuels, based on thermal energy consumption in the kiln system.

Calculation

Alternative thermal energy (MJ) consumption is the quantity of thermal


energy consumed from alternative fuels (see below) in the kiln system.
Thermal energy consumption kiln system (MJ) is the quantity of thermal
energy consumed from traditional and alternative fuels in the kiln system.

The thermal energy consumption kiln system is determined by multiplying

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8.2.2.12 Thermal Substitution Rate, TSR (%)

the volumes of fuels measured with the specific net calorific value of the
fuels. It can be determined in own laboratory, by third parties, by literature
reference or by the one specified on the invoice.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X X
Year to Date (month)
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples

Alternative Total Thermal


Thermal Thermal Substitution Rate,
Energy Energy TSR (%)
Consumption Consumption
(MJ) (000) (MJ) (000)
Kiln System Kiln System
59'199 297'995 = 59'199 / =
Kiln 1 297'995 19,9%
18'045 134'097 = 18'045 / = 13,5
Kiln 2 134'097 %
77'244 432'092 = 77'244 / =
Total 432'092 17,9%
Plant

Fuels to prepare the fuels and raw materials for the kiln are not included in
this indicator.

The following tables reflect the international IPCC norms (Inter-


Governmental Panel for Climate Change) and are also aligned with the
World Business Council of Sustainable Development (WBCSD).

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8.2.2.12 Thermal Substitution Rate, TSR (%)

Definitions used in CO2


Emission Inventory V2.1
Type Category
Traditional fuels
Fossil Fuels (non renewable)
1 Coal + anthracite + waste coal +
coal/petcoke mix
2 Petrol coke
3 (Ultra) heavy fuel
4 Diesel oil
5 Natural gas
6 Shale
Alternative fuels
Fossil Fuels (non renewable)
7 Waste oil
8 Tyres
9 Plastics
10 Solvents
11 Impregnated saw dust
12 Other fossil based wastes
Biomass Fuels (renewable)
13 Dried sewage sludge
14 Wood, non impregnated saw dust
15 Paper, carton
16 Animal meal
17 Agricultural, organic, diaper waste,
charcoal

Classification of Fuels
Name Fuel Type State Type
Alternative fuel gas Alternative Gas Non Renewable 12
Alternative fuel liquid Alternative Liquid Non Renewable 12
Alternative fuel solid Alternative Solid Non Renewable 12
Alumina smelter waste Alternative Solid Non Renewable 12

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8.2.2.12 Thermal Substitution Rate, TSR (%)

Animal meal Alternative Solid Renewable 16


Charcoal Alternative Solid Renewable 17
Chlorinated solvents Alternative Liquid Non Renewable 10
Diaper wastes Alternative Solid Renewable 17
Distillation residues Alternative Liquid Non Renewable 12
Dried sewage sludge Alternative Solid Renewable 13
Fly ash Alternative Solid Non Renewable 12
Fullers earth Alternative Solid Non Renewable 12
Graphite Alternative Solid Non Renewable 12
Iandfill gas Alternative Gas Renewable 17
Lliquid wastes Alternative Liquid Non Renewable 12
Organic wastes Alternative Solid Renewable 17
Paper, carton Alternative Solid Renewable 15
Bitch Alternative Liquid Non Renewable 12
Plastics Alternative Solid Non Renewable 9
Refuse derived fuel Alternative Solid Non Renewable 12
Saw dust Alternative Solid Renewable 14
Saw dust impregnated Alternative Solid Non Renewable 11
Sludges Alternative Solid Non Renewable 12
Solid wastes Alternative Solid Non Renewable 12
Solvents Alternative Liquid Non Renewable 10
Synfuel Alternative Liquid Non Renewable 12
Tank bottom oil Alternative Liquid Non Renewable 12
Tar Alternative Solid Non Renewable 12
Tire derived fuel Alternative Solid Non Renewable 8
Waste oil Alternative Liquid Non Renewable 7
Waste tires Alternative Solid Non Renewable 8
Waste wood Alternative Solid Renewable 14
Anthracite Traditional Solid Non Renewable 1
Coal Traditional Solid Non Renewable 1
Diesel oil Traditional Liquid Non Renewable 4
Heavy fuel oil Traditional Liquid Non Renewable 3
Methane Traditional Gas Non Renewable 5
Mix coal/petcoke Traditional Solid Non Renewable 1
Natural gas Traditional Gas Non Renewable 5
Petrol coke Traditional Solid Non Renewable 2

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8.2.2.12 Thermal Substitution Rate, TSR (%)

Shale Traditional Solid Non Renewable 6


Ultra heavy fuel oil Traditional Liquid Non Renewable 3
Waste coal Traditional Solid Non Renewable 1
Waste coke Traditional Solid Non Renewable 2

Version: 9 Last Modified by Keith


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11/15/2002

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8.2.2.14 Availability Index (Net and Gross, %)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.14 Availability Index (Net and Gross, %)

Definition
Gross Availability Index of main equipment corresponds to the ratio of actual
operating time to calendar time (total time in the period). Net Availability
Index of main equipment corresponds to the ratio of operating time and idle
time to calendar time. HTC Code HAC* -AVAG or HAC*-AVAN (* code as
detailed as required).

Reference to Process
This indicator refers to:

All main equipment in all main cost centers up to and including cement
grinding
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
The Gross Availability Index measures the utilization of the equipment, as it
refers to actual operating time, while the Net Availability Index measures the
total time for which the equipment could potentially be operated.

Calculation
Actual Operating Time (h) x 100
Gross Availability --------------------------------------------
Index (%) = ---------
Calendar time (h)

(Actual Operating Time (h) + Idle Time) x


100
Net Availability Index --------------------------------------------------------
(%) = ---------------------

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8.2.2.14 Availability Index (Net and Gross, %)

Calendar Time (h)

where

Calendar = actual operating time + idle time + other downtime


time = 24 hours x # of days in the period i.e. total time in the period
Idle time= equipment is not operating but is in a condition for
immediate start up
Other = equipment is not operating and not in a condition for
downtime immediate start up

Operating time requires that the main equipment is operating and that it is
fed.

Reporting
This indicator must be reported and reviewed on monthly, 13 weeks and 12-
month rolling average according to the table below*:

Level Main Plant / All


Equipment Plant Sub-
Reporting Period Segment
Monthly X
Year to Date (month)
12-Month Rolling X
* Highlighted cells mean that the level and reporting period is requested in
the HMR.

This indicator is only relevant on main equipment level. For this reason no
aggregation or consolidation is necessary.

Comments and Examples


This indicator should be reviewed on a daily basis and trended over 13-
week and 12-month periods as a basis for operational decisions on asset,
plant and company level.

This indicator should be used in conjunction with downtime Pareto to


analyze causes for idle time and other downtimes.

Example for a kiln line:

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8.2.2.14 Availability Index (Net and Gross, %)

Week Date of Date of Equipment Duration Calendar Actual Gross


Monday Stop Time Operation Availability
(Week) Time Index

h h h %
1 05.01.98 168 168 100.00%
2 12.01.98 06.01.98 Bearing #2 12 168 156 92.86%
Failure
(kiln)
3 19.01.98 168 168 100.00%
4 26.01.98 26.01.98 168 168 100.00%
5 02.02.98 05.02.98 ID Fan 24.5 168 168 85.42 %
Failure
(kiln)
6 09.02.98 168 100.00%
7 16.02.98 19.02.98 Ext Power 48 168 120 71.43%
Failure *
8 23.02.98 168 168 100.00%
9 02.03.98 03.03.98 Bearing #1 18 168 142 84.52%
Failure
(kiln)
10 09.03.98 168 168 100.00%
11 16.03.98 168 168 100.00%
12 23.03.98 29.03.98 Refractory 72 168 96 57.14%
Patch (kiln)
13 30.03.98 168 168 100.00%
Total 182.5 2,184 2,001.5 91.64%

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8.2.2.14 Availability Index (Net and Gross, %)

* No power from supplier and no maintenance work done on the main


equipment

Calendar time = 2184 h


Idle time = 48 h
Actual operating time = 2001.5 h
Actual operating time + idle time = (2001.5 + 48) h = 2049.5 h
Other downtime = (2184 - 2049.5) h = 134.5 h

2001.5 h x 100
Gross Availability --------------------- =
Index (%) = ------- 91.64%
2184 h
(2001.5 h + 48 h) x
100
Net Availability Index ---------------------------- = 93.84%
(%) = ---------
2184 h
Examples of idle time are:

Lack of demand
Logistical constraints, i.e. full silos
Lack of power supply from external provider
Off-peak power utilization
Natural disasters without impact on the condition of equipment (e.g.
earthquakes, before 2nd wave)
Raw mill is down due to kiln shutdowns, and no activities / no
maintenance that affect the condition of the raw mill equipment are done.
This is idle time for the raw mill
Strikes

Examples of other downtime are:

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8.2.2.14 Availability Index (Net and Gross, %)

Bearing failure of the kiln ID fan


Preventive / planned maintenance shutdown
Fire that damaged electrical cable trays of the kiln
Natural disasters with impact on the condition of equipment (e.g. flooding
of the engine room)
Shutdown of the kiln due to ruptured main plant water supply line

In cases where the condition of equipment in auxiliary cost centers (such as


the electric substation or plant water supply system) prevent a main
equipment from operating, this will be considered as other downtime for this
main equipment.

The main criteria whether a stoppage generates idle or other downtime is


the immediate starting availability (without any further maintenance) of the
main equipment.

Rule for maintenance work carried out during idle time:


An equipment is shutdown for idle time reasons and maintenance is
performed during the period. In this case, the time spent exclusively on
maintenance is considered as other downtime and the remaining time is
considered as idle time

Example

A main equipment is shutdown for 4 weeks due to market reasons and it is


decided that maintenance activities are performed only on one shift each
day. Although, the main equipment may not be in a condition to operate
during the period, the remaining two shifts per day are considered as idle
time:

The maintenance time is other downtime = 4 weeks x 7 days x 8 h (1 shift) =


224 h (shown in green).The idle time is 4 weeks x 7 days x 16 h (2 shifts) =
448 h.

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8.2.2.15 Production Rate Index (%) [by BDP]

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8 Holcim Performance Indicators


8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.15 Production Rate Index (%) [by BDP]

Description
This indicator corresponds to the actual production rate expressed as a
percentage of the Best Demonstrated Practice (BDP). HTC Code HAC*-PRI
(* per kilns, per mill).

Reference to process
This indicator refers to:

All main equipment in all main cost centers up to and including 'Cement
Grinding'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the rate of a process in order to identify and further eliminate
rate losses.

Calculation
For Kilns:
Actual Production Rate (t/day) x
100
Actual Production Rate -------------------------------------------
Index (%) = ----------------
BDP (t/day)

For Other Equipment:


Actual Production Rate (t/h) x
100
Actual Production Rate ------------------------------------------
Index (%) = ----------------

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8.2.2.15 Production Rate Index (%) [by BDP]

BDP (t/h)

For the determination of BDP see Comments and


Examples at the end of this chapter.

For operating units where more than one product type is produced,
the Production Rate Index (%) should be calculated by weighing
the Production Rate Indices with the actual operating times for
each product:

Production Production Rate Index 1 * Operating Time 1 + Production Rate


Rate Index 2 * Operating Time 2
Index (%) = --------------------------------------------------------------------------
(operating ----------------------------
unit) Operating Time 1 + Operating Time 2

Reporting
This indicator must be reported and reviewed on monthly, 13 weeks and 12-
month rolling average according to the table below*:

Level Main Plant / All


Equipment plants Sub-
Reporting Period Segment
Monthly X
Year to Date (month)
12-Month Rolling X
* Highlighted cells mean that the level and reporting period is requested in
the HMR.

This indicator is only relevant on main equipment level. For this reason no
aggregation or consolidation is necessary.

Comments and Examples


When a BDP is adjusted, all Production Rate Index figures used in the
rolling average calculations have to be similarly adjusted, based on the
latest BDP, as well as the Net OEE and Gross OEE, in order to maintain
consistency of the figures.

Example: The BDP of a mill had changed from 70 t/h to 80 t/h in December.

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8.2.2.15 Production Rate Index (%) [by BDP]

Then the 12-month rolling Production Rate Index must be based on 80 t/h
for all 12-month periods which include the month of the change (December),
i.e. the periods September to August, October to September etc.

a) For a cement mill with one product:

Week Production Production

Rate Rate
Index
t/h %
05-Jan- 60 90.91%
98
12-Jan- 61 92.42%
98
19-Jan- 61 92.42%
98
26-Jan- 62 93.94%
98
02-Feb- 57 86.36%
98
09-Feb- 60 90.91%
98
16-Feb- 59 89.39%
98
23-Feb- 61 92.42%
98
02-Mar- 60 90.91%
98
09-Mar- 61 92.42%
98
16-Mar- 61 92.42%
98
23-Mar- 60 90.91%
98
BDP = 66 t/h
57
t/h
The Production Rate Index of the week ------ = 86,36 %
of 02-Feb-98 is ---
66

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8.2.2.15 Production Rate Index (%) [by BDP]

t/h

b) For a cement mill with two products:

Volume Produced Actual


Operating Time
Week Date Type I Type II Mil Type I Type Mil Type
of II
Monday
t t t h h h
1 05.01.98 9'536.00 538.40 10'074.40 160.00 8.00
168.00 59.60
2 12.01.98 8'668.80 717.60 9'386.40 144.00 12.00
156.00 60.20
3 19.01.98 9'811.20 - 9'811.20 168.00 -168.00 58.40
4 26.01.98 8'540.50 1'564.00 10'104.50 145.00 23.00
168.00 58.90
5 02.02.98 5'525.76 3'196.75 8'722.51 96.00 47.50
143.50 57.56
6 09.02.98 7'217.95 3'277.50 10'495.45 120.50 47.50
168.00 59.90
7 16.02.98 5'529.00 1'710.00 7'239.00 95.00 25.00
120.00 58.20
8 23.02.98 9'794.40 9'794.40 168.00 168.00 58.30
9 02.03.98 8'037.60 409.20 8'446.80 136.00 6.00 142.00 59.10
- - - -
10 09.03.98 9'676.80 - 9'676.80 168.00 - 168.00 57.60
11 16.03.98 8'162.00 1'912.40 10'074.40 140.00 28.00 168.00 58.30
12 23.03.98 7'663.50 892.50 8'556.00 131.00 15.00 146.00 58.50
13 30.03.98 8'468.00 1'543.30 10'011.30 145.00 23.00 168.00 58.40
Total 106'631.15 15'761.65 122'393.16 1'816.50 235 2'051.50 58.70

BDP 64.00 70.00

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8.2.2.15 Production Rate Index (%) [by BDP]

Production Rate Index Type I = 91,72%


Production Rate Index Type II = 95,82%
Operating Time Type I = 1816.5 h
Operating Time Type II = 235 h
Operating Time Mill = 2'051.5 h
BDP Type I = 64 t/h
BDP Type II = 70 t/h

91.72% * 1816.5 h +
95.82% * 235 h
Production Rate Index ------------------------------------ = 92.19%
(mill) = ------------
2,051.5 h

Best Demonstrated Practice (BDP)


Description
The Best Demonstrated Practice (BDP) is an equipment specific value. It is
the best historical production rate, measured in tons/day (kiln) or tons/hour
(mills, crusher), for any product type, achieved during the last 24 months
before the budget phase. The BDP is re-determined annually for the new
budget.

Purpose
The BDP is necessary for calculation of Standard Clinker Capacity,
Standard Cement Capacity, Production Rate Index and therefore Net OEE

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8.2.2.15 Production Rate Index (%) [by BDP]

and Gross OEE .

Calculation
A. BDP for Kilns

The BDP for kilns is the highest historical production rate (tons/day)
achieved during the last 24 months before the budget phase. The BDP
fulfills the following additional conditions (see also graph):

It represents any of five consecutive days (5-day-window) within the


considered time period of 24 months.
The lowest value of this 5-day-window is not below 95% of the highest
value.
The downtime per day should not exceed 0.5 hours. If it is not possible to
find such a 5-day-window that qualifies, the arithmetic average of the
best five daily production rates has to be considered.
The considered production rates were not influenced by a reporting or
stock adjustment anomalies.
BDP is elaborated for each clinker production line and clinker type
individually.

Note that for new kilns or major investments the following applies:
In the first year of operation the design capacity is used as BDP. Afterwards
the BDP has to be determined according to the definition. If the production
time is below 24 months the rules to determine the BDP have to be applied
on the actual period the main equipment is in operation (at least twelve
months). The BDP may not be lower than the design capacity.

Recommended Procedure to Determine Kiln BDP


Take the average daily clinker production rates of the previous 24
months
Determine the 5-day-window with the highest production rate and all
other values not below 95% of it
Check whether the downtime of each individual day in the window is less
than 0.5h
The highest production rate in the window represents the BDP

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8.2.2.15 Production Rate Index (%) [by BDP]

Changes of BDP
If it is required to change the kiln BDP, it must only be changed for the next
budget, even if major process changes influence the clinker capacity
considerably. It will become effective as of January 1st of the following year.

For BDP Reductions up to For BDP Reductions


5%: higher than 5%:
Assessment by HGRS is required
Plant proposes adjustment to the on basis of
company management as well as to
HGRS coordinators for approval. Historical development of BDP
Specific load of kiln installations
Modification of fuel, raw and
product mix
Modification of equipment

B. BDP for Other Equipment (Raw Mill, Cement Mill, Coal Mill, Crusher, etc.)

The BDP for Other Equipment per product (e.g. different cement types
ground on the same mill) is the arithmetic average of the five highest
historical production rates (tons/hour) achieved during the last 24 months
before the budget phase, which fulfills the following additional conditions:

The considered production rates were not influenced by a reporting or


stock adjustment anomalies
All products have to be considered
The lowest value of these five values must not be below 95% of the
highest value

If the operating time per day and per product is at least 8 hours: the BDP is
the arithmetic average of the five highest production rates of the days with at
least eight hours operating time per day during the considered period of 24
months.

If there are not sufficient 8-hour runs: the BDP is the arithmetic average of
the five highest production rates during the considered period of 24 months.

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8.2.2.15 Production Rate Index (%) [by BDP]

Note that for new equipment or major investments the following


applies: in the first year of operation the design capacity is used as
BDP. Afterwards the BDP has to be determined according to the
definition. If the production time is below 24 months the rules to
determine the BDP have to be applied on the actual period the
asset is in operation. The BDP may not be lower than the design
capacity.
The BDP must be determined for raw mills and cement mills. It may also be
determined for other bottleneck equipment such as coal mills, crushers, etc.

Changes of BDP
If it is required to change the BDP, this should only be done at the end of the
year (for new budget), even if major process changes influence the
production capacity considerably. It will become effective as of January 1st
of the following year.

Version: 9 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.16 Net Overall Equipment Efficiency, Net OEE (%)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.16 Net Overall Equipment Efficiency, Net OEE (%)

Description
This indicator is a measure of the potential performance of a kiln taking into
account Net Availability Index (%), Production Rate Index (%) and Quality
index (%), excluding periods when the kiln was unable to run. HTC Codes:
400-OEEN-CLINKE and 500 -OEEN-CEM.

Reference to Process
This indicator refers to:
All kilns within main cost center 'Clinker Production'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To indicate the potential performance of a kiln.

Calculation
Net OEE (%) = Net Availability Index (%) x Production Rate Index (%) x
Quality Index (%)

For industries with an insignificant level of final product rejects such as the
oil and cement industries, the quality index of the OEE calculation is set to
100%.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /

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8.2.2.16 Net Overall Equipment Efficiency, Net OEE (%)

Reporting Period Sub-


Segment
Monthly X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


This indicator should be used in conjunction with the Gross OEE, to
measure the gap between actual and potential performance of a kiln.
Further analysis should then be carried out on the Availability Index and
Production Rate Index components.

This indicator should be reviewed, at minimum, on a weekly basis, and the


rolling 13-week and rolling 12-month trends monitored, as a basis for
operational decisions on plant and company level.

Note that the 13-week period is more useful for analyzing short-term trends,
but can be heavily influenced by planned shutdowns (e.g. kiln relining). The
12-month period is more useful to understand overall trends.

Consolidated OEE of a plant is calculated as a weighted average by BDP


(see under Production Rate Index).

(Kiln OEE% x Kiln BDP) + (Kiln OEE% x Kiln BDP) +


1 1 2 2
(Kiln OEE% x Kiln BDP)
3 3
OEE --------------------------------------------------------------------------------
(%) = ------------------------------------
Kiln BDP + Kiln BDP + Kiln BDP
1 2 3

Example

Kiln BDP (tpd) OEE (%)


1 430 86.5
2 420 87.9
3 1,370 92.7

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8.2.2.16 Net Overall Equipment Efficiency, Net OEE (%)

(86.5 x 430) + (87.9 x 420) + (92.7 x


1370)
OEE -------------------------------------------------- = 90.6%
(%) = -----------------
430 + 420 + 1370

The consolidated OEE (kilns) of a company (as requested in the HMR)


follows the same rule.

Example: a company with two plants and two kilns in each plant:

Plant 1 Plant 2
Kiln (BDP ) Kiln (BDP )
1 1 3 3
Kiln (BDP ) Kiln (BDP )
2 2 4 4
Net OEE kiln % x BDP + Net OEE kiln % x BDP + Net OEE kiln % x
1 1 2 2 3
BDP + Net OEE kiln % x BDP
3 4 4
Net OEE (%) = ------------------------------------------------------------------------------------------------------
--------------------
BDP + BDP + BDP + BDP
1 2 3 4
When a BDP is adjusted, the OEE rolling averages have to be
recalculated using the new BDP, in order to maintain consistency
of the figures.
Example

The BDP of a kiln had changed from 1,200 t/d to 1,250 t/d in December.
Then the 12-month rolling OEE must be based on 1,250 t/d for all 12-month
periods which include the month of the change (December), i.e. the periods
September to August, October to September etc.

Note that for other main equipment it can also be needed to calculate Net
OEE. In this case the same concept is applicable.

Version: 11 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

https://web.holcim.com/harp/harp-man.nsf/cc370b1caeb602edc1256a72003376c4/3a1... 03.12.2002
8.2.2.17 Gross Overall Equipment Efficiency, Gross OEE (%)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.17 Gross Overall Equipment Efficiency, Gross


OEE (%)

Description
This indicator is a measure of the potential performance of a kiln taking into
account Gross Availability Index (%), Production Rate Index (%) and Quality
index (%), excluding periods when the kiln was unable to run. HTC Codes:
400-OEEG-CLINKE and 500-OEEG-CEM.

Reference to Process
This indicator refers to:
All kilns within main cost center 'Clinker Production'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To indicate the potential performance of a kiln.

Calculation
Gross OEE (%) = Gross Availability Index (%) x Production Rate Index (%) x
Quality Index (%)

For industries with an insignificant level of final product rejects such as the
oil and cement industries, the quality index of the OEE calculation is set to
100%.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

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8.2.2.17 Gross Overall Equipment Efficiency, Gross OEE (%)

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X
Year to Date (month) X X
12-Month Rolling X X

* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


This indicator should be used in conjunction with the Net OEE, to measure
the gap between actual and potential performance of a kiln. Further analysis
should then be carried out on the Availability Index and Production Rate
Index components.

This indicator should be reviewed, at minimum, on a weekly basis, and the


rolling 13-week and rolling 12-month trends monitored, as a basis for
operational decisions on plant and company level.

Note that the 13-week period is more useful for analyzing short-term trends,
but can be heavily influenced by planned shutdowns (e.g. kiln relining). The
12-month period is more useful to understand overall trends.

Consolidated Gross OEE of a plant is calculated as a weighted average by


BDP (see under Net OEE).

(Kiln OEE% x Kiln BDP) + (Kiln OEE% x Kiln BDP) +


1 1 2 2
(Kiln OEE% x Kiln BDP)
3 3
OEE --------------------------------------------------------------------------------
(%) = ----------------------------------------
Kiln BDP + Kiln BDP + Kiln BDP
1 2 3

When a BDP is adjusted, the OEE rolling averages have to be


recalculated using the new BDP, in order to maintain consistency
of the figures.
Example

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8.2.2.17 Gross Overall Equipment Efficiency, Gross OEE (%)

The BDP of a kiln had changed from 1,200 t/d to 1,250 t/d in December.
Then the 12-month rolling OEE must be based on 1,250 t/d for all 12 month
periods which include the month of the change (December), i.e. the periods
September to August, October to September etc.

Note that for other main equipment it can also be needed to calculate Gross
OEE. In this case the same concept is applicable.

Version: 10 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.18 Mean Time Between Failures, MTBF (h)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.18 Mean Time Between Failures, MTBF (h)

Description
This indicator measures the average duration between any failures for a
main equipment. HTC Code HAC*-MTBF (*per kiln, per mill).

Reference to Process
This indicator refers to:
All main equipment in all main cost centers up to and including 'Cement
Grinding'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To quantify the frequency and average duration of failures, for a main
equipment in order to determine the overall effectiveness of a preventive
maintenance strategy. This indicator may be used to determine the need for
Preventive Maintenance Routines (PMR's) to be introduced or amended for
a main equipment. It can also be used to identify the need for changes in
operational procedures or engineering design. It should not necessarily be
used to determine the frequency of a PMR.

Calculation
Actual Operating
Time (h)
MTBF ---------------------------
= ----------
# Failures

Example:
Date Stoppage Duration

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8.2.2.18 Mean Time Between Failures, MTBF (h)

(h)
06.Jan Bearing Failure 12.0
98
05.Feb ID Fan Failure 24.5
98
19.Feb External Power 48.0
98 *
Failure
03.Mar Bearing Failure 18.0
98
07.Mar Bearing Failure 8.0
98
29.Mar Refractory Failure 72.0
98
Total 182.5
* Not an equipment failure

Calendar time = 13 weeks x 168 h = 2,184.0 h


Actual operating time = 2,184 h - 182.5 h = 2,001.5 h
Number of failures = 5

2,001.5
h
MTBF ------------ = 400.3 h
(h) = -----
5
Failures include all stoppages that result in other downtime (see Availability
Index) as well as uncontrolled shutdowns that lead to idle time.

This means that all stoppages are failures, not considering planned
shutdowns, which lead to idle time (peak hour, market demand, etc.)

Example of failures:

Breakdown of kiln ID Fan due to defective bearing


Preventive/planned maintenance shutdown of the main equipment
Unanticipated power supply failure e.g. storm
Raw mill shuts down due to uncontrolled shutdown of the kiln. Failure is
both for raw mill and kiln main equipment
Shutdown due to lack of demand (idle time) but maintenance activities
affecting the main equipment availability are performed during the
stoppage

What may be excluded from failures (only if no maintenance activities

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8.2.2.18 Mean Time Between Failures, MTBF (h)

affecting the main equipment availability are performed during the


stoppage):

Controlled raw mill shutdown due to controlled planned maintenance


shutdown of the kiln (not a failure for the raw mill but a failure for the kiln
Electric power curtailment
Off-peak power utilization
Shutdown to allow changing material and/or product type
Shutdown due to lack of demand (idle time), and no maintenance
activities affecting the main equipment availability are performed during
the stoppage

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Main Plant / All


Equipment Plants Sub-
Reporting Period Segment
Monthly X
Year to Date (month)
12-Month Rolling X
* Highlighted cells mean that the level and reporting period is requested in
the HMR.

This indicator is only relevant on main equipment level. For this reason no
aggregation or consolidation is necessary.

Comments and Examples


The MTBF should be calculated for each main equipment. Ideally, the MTBF
should be calculated using the previous 13-week and 12-month history of
the main equipment to provide an accurate measurement. 52 weeks of
machine history should be used since it typically represents one complete
maintenance cycle.

Version: 3 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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8.2.2.13 Coefficient of Variation of Cement Mortar Strength (%)

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8.2 Technical Indicators
8.2.2 Clinker and Cement

8.2.2.13 Coefficient of Variation of Cement Mortar


Strength (%)

Description
This indicator is described by the coefficient of variation of the compressive
strength of cement mortar, according to local / regional requirements. HTC
Code 500-VARI-CEM.

Reference to Process
This indicator refers to:
Main cost center 'Cement Grinding' and 'Shipping Station'
Product sub-segment clinker and cement
Product segment cementitious materials

Purpose
To measure the variability of the cement mortar compressing strength as an
expression of the quality of the manufacturing process.

Calculation

The physical testing of compressive strength is performed on cement

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8.2.2.13 Coefficient of Variation of Cement Mortar Strength (%)

samples taken from cement production and / or shipping station (i.e.


'Cement Grinding' and 'Shipping Station' main cost centers). Frequency of
strength performance testing should be done according to local/regional
standards / requirements, however testing on daily composite samples is
recommended if feasible.

Reporting
This indicator must be reported and reviewed on a monthly basis and in
annual intervals, according to the table below*:

Level Plant All Plants /


Sub-
Reporting Period Segment
Monthly X
Year to Date (month) X
12-Month Rolling
* Highlighted cells mean that the level and reporting period is requested in
the HMR.

Comments and Examples


It is an internal decision to determine which product(s) should be analyzed,
for example the main budgeted products.

Calculation and Interpretation of Standard Deviation and Average

Monthly
The average value of the cement mortar strength


= 1
n
i
i=1

Equation 1

= average of all measured values

The standard deviation, normally designated 's', is the measure generally


used for the determination of the variability of a measured value. As an

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8.2.2.13 Coefficient of Variation of Cement Mortar Strength (%)

example, the method currently used in Europe, is defined by the following


equation:

__________________

(xi -
s _1_
m 2
= )
n-1
i=1
Equation.2

The above formulas calculate the monthly values of the average and the
standard deviation.

n = number of measured values

x = (i = 1, 2, ..., n) individual measured values


i

s = standard deviation of month m


m
Year To Date (YTD)
The YTD values are calculated from the respective monthly figures (see
equations 1 and 2) according to the following:

Equation 3

= YTD average

S = YTD standard deviation

n = number of YTD measurements


n=

n
m
m=1

Equation 4

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8.2.2.13 Coefficient of Variation of Cement Mortar Strength (%)

n = number of measurements in month m


m

= average of month m
m

If the scattering around the average of the respective period also has
systematically changed, the standard deviations s , s , ..., s (see Equation
1 2 z
no.2) should also be separately calculated and noted. If, however, the
scatter remains the same and only the average is changing, the standard
deviation can be calculated including all periods together according to the
following equation:

__________________

(n
S= _1_
n-z - 1)
m
2
s
m
m=1
Equation 5

z = the number of periods

Annual
For full year figures of the average cement mortar strength and standard
deviation of the cement mortar strength apply the YTD formula for z=12.

Version: 10 Last Modified by Keith


Cameron/HGRS/Holcim on
11/15/2002

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