【導(dǎo)讀】CONFIDENTIAL. 6June2002. 1. SUCCESS?FORDISCUSSION. Targetsetting. review. deviations. 2. SUCCESS?FORDISCUSSION. review. Additionalissues. region. 3. Integratewith. HRbudget. processingSet. stretch. targets. against. technical. limits. Planand. implement. Trackand. adjust. 2.Stretching. performance. management. cycles. 1.Changeleadership. allproperties. Standardise

　　

【正文】 4SueJ_P3 28 THE WAY FORWARD Next steps FOR DISCUSSION Responsibility Timing ? Develop KPIs for maintenance down to artisan level ? Develop KPIs for all individuals in Region 3 ? 2nd day of Performance Management workshop ? Mark Davies ? 31 May 2002 ? tbd ? Set opportunity targets for all KPIs by Region, sub region, country and site based on mon EVA tree developed in workshop ? Ops – Mark Davies ? Maintenance – Maintenance Steering Committee ? Asset replacement – Clyde Kirkwood ? tbd ? Implement proposed changes to monthly reports by building on existing divisional reports ? Introduce a formalised feedback process ? Frank, Andries, Wynne, Clyde ? 30 June 2002 ? Develop assessment forms and details of system ? Develop prehensive consequence management system linked to KPIs ? Train managers and supervisors ? Introduce to all people on the divisional scheme as a first step ? Formalise and introduce annual talent reviews ? William Neuwenhuis and support from Clyde’s SBU ? Frank, Clyde, Joe, Vidar ? William Neuwenhuis ? William Neuwenhuis ? 31 July 2002 ? 31 July 2002 ? 31 July 2002 KPIs Opportunity target setting methodology Business performance management Individual performance management ? Discuss approach with John Lyden ? Develop proposal to resolve issue ? Clyde Kirkwood ? Clyde Kirkwood ? 7 June 2002 ? 18 June 2002 Asset replacement 020529JHJHO494SueJ_P3 29 APPENDIX 020529JHJHO494SueJ_P3 30 EVA TREE: OVERVIEW Region 3 EVA SBU 1 EVA SBU 2 EVA NOPAT Capital charge NOPBT Tax Gross profit Gamp。A Expenses Ramp。D expenses Operating adjustment KPI KPI Regional Gamp。A expenses KPI KPI KPI 2 1 3 SBU 1 ? Egypt ? Saudi Arabia ? Bahrain ? South Africa SBU 2 ? Australia ? New Zealand ? Indonesia ? China BACKUP 020529JHJHO494SueJ_P3 31 EVA TREE: GROSS PROFIT Gross profit Revenue Cost of sales Facility fees Overheads costs Quantity/ volume Contract rate Steelmake tonnes Contract rate/ tonne Facility services costs Quantity/ volume contract costs Services contract costs Scrap processing Metal recovery KPI KPI Quantity/ volume fees Service fees Operations costs Maintenance costs Pot carrying Rentals Other Variable costs Fixed costs Payroll Infrastructure Variable cost/ throughput Throughput KPI KPI KPI KPI KPI 1 KPI Example of the process to follow in a deep dive. This needs to be pleted for all individuals in Region 3 and needs to be broken down much further 4 BACKUP 020529JHJHO494SueJ_P3 32 EVA TREE: Gamp。A EXPENSES Gamp。A expenses Payroll Infrastructure and related expenses Workload needed Effective workload per person Defined workload Variance on defined workload KPI No. of people Cost per person KPI Other expenses Theoretical maximum workload Individual petence 2 These KPI requirements for payroll and the branches of the tree can be used as a generic framework for all other payroll tree branches in the gross profit tree BACKUP 020529JHJHO494SueJ_P3 33 EVA TREE: CAPITAL CHARGE Capital charge Capital WACC % No. of units Book value/unit No. of units for work No. of units for standby Working capital Fixed assets KPI Original cost Accumulated depreciation Work load required Effective work/ unit Rebuild cost Accumulated rebuild depreciation Cost over life of unit Life used Life that should have been used Deteriorated life used Calendar hours OEE % 3 Asset replacement issues This level to be broken down by unit type before the next level 5 BACKUP 020529JHJHO494SueJ_P3 34 EVA TREE: MAINTENANCE COSTS (1/2) Maintenance costs Planned maintenance costs Maintenance related breakdown costs Planned maintenance frequency No. of planned maintenance activities Cost per planned maintenance activity Operation related breakdown costs 4 Operating hours Available hours Hours used Calendar hours Maintenance downtime Planned hours Unplanned hours Planned hours vs unplanned hours Hours worked vs hours clocked KPI KPI KPI Availability Utilisation 020529JHJHO494SueJ_P3 35 EVA TREE: MAINTENANCE COSTS (2/2) Maintenance costs Planned maintenance costs Maintenance related breakdown costs Parts related breakdowns Cost per breakdown No. of breakdowns Operations related breakdown costs 4 Workmanship related breakdowns KPI MTBF Poor maintenance strategy Poor parts design Poor parts quality Poor skill levels Poor resources Low motivation Direct maintenance cost Opportunity cost Labour Materials KPI Normal Overtime KPI KPI Supplier returns KPI Competency matrix KPI As % of sales Materials availability KPI OEE Misapplication of equipment Operator abuse Other KPI Frequency/cost of operator abuse 020529JHJHO494SueJ_P3 36 EVA TREE: WORKING CAPITAL Working capital Inventory Current liabilities Consumables Spare parts Obsolete Current Daytoday Insurance items Planned Unplanned KPI Inventory days Min/max inventory levels KPI Age analysis 5 + + + +