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TO T ENSURE THAT YOU REFER TO THE MOST T CURRENT VERSION OF O THIS DOCUMENT, D , Pages - Te echnical Doc cuments Se arch

For more inf formation or to give fee edback on this docum ment, please e contact M M&T Risk an nd Assuranc ce Tel: T +27 11 6 638 2815

EQUIP E PMENT T PERF FORM MANCE E METRICS

1 2 3 4 5 Aim M Motivation Application Definitions R Requiremen nts 5. .1 5. .2 5. .3 Plan nt and Equ uipment Re equirement ts Sys stem and Procedural P Requirements Peo ople Requir rements 2 2 2 3 6 6 7 8 9 9 10 11 12 13 13

Appendix A: Referenced docu uments Appendix B: Record d of Amend dments Appendix C: Calcula ation Exam mple Appendix D: Target Setting Appendix E: Calcula ating Consequential D Down Time e Appendix F: Time Allocation A Descision D T Tree Appendix G: Downti ime Descri iption

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AIM M
The e aims of thi is Documen nt are: a) b) c) d) To provid de the basis s for a comm mon Group wide availa ability / dow wntime hiera archy Standard disation of th he availabil ities and do owntime cod des To enhan nce perform mance monit toring, man nagement co ontrols and decision making m Allow the e developme ent of comm mon proced dures and monitoring m m models.

MO OTIVATI ION
It is s required to o have a co ommon mod del adopted d across the e Group wh hich will facilitate like for f like benchmar rking. This s Documen nt applies to o all Anglo o American Group managed bus sinesses an nd operation ns including contr ractors when involved iin controlled d activities.

AP PPLICAT TION
App plication of this t Require ements Doc cument sup pports the re equirements ts defined in n AA GTS 20 2 Ass set Management. Any y request fo or exemptio on from the e requireme ents in this document t shall be processed p a as follo ows: a) b) c) d) motivation for f the exem mption, inclu uding a risk k assessment The Operation shall prepare a m a m measures and any proposed alternative iness Unit Discipline D H ead shall re eview and subsequentl s ly motivate the The Busi exemptio on to the Te echnical Dis scipline Cou uncil for app proval Approval l of the exem mption shalll be recorde ed in the Te echnical Dis scipline Cou uncil minute es If the exe emption is not n approve ed, the Oper ration shall be required d to adhere to the requirem ments.

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DE EFINITIO ONS
Tim me Model :

Ava ailability for Sys stems in Ser ries Ava ailability for syst tems in para allel (Sta andbys)

: S avaiilability = (% % Availability y A) x (% A Availability B) B % System :

% System S avaiilability = 1 [(1-% Ava ailability A) x (1-% Availability B)] Ava ailability for com mposite syst tems :

% System S avaiilability = (% % Availability y A x y %) + (% Availability B x z %) Targ get : Targ get to be on ne of the following in or rder of prefe erence: a) b) CT : Industry b benchmark (Anglo American agre eed moderated value) Equipme nt nameplate/design.

Con ntrollable Tim me: The pe ercentage of total calen ndar time th hat is actually used d by the op eration. Perc centage Co ontrollable Time T over Calendar C Tim me CT = T100/T00 00 x 100

COT T

Con ntrollable O Operating Ti ime: The percentage p of time tha at equipme ent Time. was s operated w within the Controllable C Perc centage Dir rect Operati ing time ove er Controlla able Time, or o % Equipment E A Availability x % Use of Equipment Availability y COT T = T300/T1 100 x 100 = EQA x UE EA

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D00 00

Dow wntime: Dow wntime attributable to Maintenanc ce and Ope erational th hat rend ders the equ uipment ino operable Uns scheduled Maintenance Downtime: Down ntime as a result of maintenance w work not inc cluded in the confirme ed weekly maintenanc ce plan n. Scheduled M Maintenance e Downtim me: Downtiime as a result of maintenance w work include ed in the con nfirmed wee ekly maintenance plan. Ope erational dow wntime. stops: Operator/Ope O erationally induced equipme ent

D10 00

D20 00

D30 00

Failure

The e unexpecte ed loss of one or more m of the e equipmen nt's intende ed func ctions. Effe ective Produ uction: a performance p e indicator of how eff fective dire ect operating time is used for primary pro oduction/pur rpose. centage of Primary Pro oduction over Direct Op me Perc perating Tim EP = P200/T30 00

EP

EQA A

Equ uipment Av vailability: a performance indicat tor of how w much tim me equipment can be product tive. centage Up ptime over Controllable C time Perc EQA A = T200 / T T100 x 100 EQA A = (MTBS) )/(MTBS + MTTS) M

UEA A

Use e of Equipm ment Availa ability: a pe erformance indicator of o how muc ch time e the equipm ment is used when it is s available. Perc centage Dir rect Operati ing Time ov ver Uptime EQU U = T300 / T200 x 100 0

Equ uipment Flee et L00 00

Grouping of eq quipment wi ith the same e character ristics condu ucting similar operations. Lost t Time: Tim me during Up ptime (T200 0) when the e machine was w available, but not used. Con nsequential: : Impact on equipment t, section or r modules as a a result of upst tream or do ownstream stoppages. s Stan ndby: Time allocated to o spare equ uipment ava ailable for production. Stan ndby is ide entified as a requirem ment for th e operation n, activity or sect tion in their operational strategy and long to s short term plans. p Stan ndby may n not be used if the equip pment is not t available.

L10 00

L20 00

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L30 00

Dela ays: All saf fety, staff and service related del ays that oc ccurred whe en the equipment was availab ble but not used. u Non n Controllab ble time: Total Time equipment e is not sche eduled to be b prod ductive or c could not be e productive e. Non n Scheduled d Time: Equ uipment time allocated as not bein ng required in the production plan. (Only y applicable to non-full c calendar op perations) Unc controllable Time: Tim me attributab ble to exter rnal factors s beyond th he cont trol of the operation that t affects s the whole e operation e.g. outsid de utilit ties such as s power, wa ater, rail sys stems, envir ronmental disasters. d Only y abnormall events or occurrence es and whiich are gre eater than 24 2 hours in duratio on and coul ld not have been budge eted for.

N00 00

N10 00

N20 00

MTB BS

Mea an Time Bet tween Stop ps: T200 / Count(D D000events) Whe ere Count (D000even nts) is the number o of equipme ent downtim me events contribu uting to dow wntime D000 0;

MTT TS

Mea an Time To Start: (D00 00)/ Count( (D000event ts) Whe ere Count (D000even nts) is the number of f events co ontributing to dow wntime D000 0.

OEE E

Ove erall equipm ment effectiv veness (OE EE) is a hie erarchy of metrics m whic ch focu us on how e effectively equipment is s utilised. The e metrics are e described d below: a) b) Overall U Utilisation - OU O Performa ance: The portion of the OEE Metric rep presents th he productio on rate at which w the op peration run ns as a perc centage of its i targeted rate. n of the OEE O Metric represents s the Quali ity Quality: T The portion achieved at an opera ation as a percentage p of its target ted Quality.

c)

E = OU x (Actual Production P get Production Rate) x Rate)/(Targ OEE (Actual Quality)/(Target Quality) OU : Ove erall Utilisat tion: The ultimate u pe erformance indicator of how tot tal cale endar time is s utilised (S Sweating the e asset). OEQ QU = P200/ /T000 x 100 0 P10 00 : Sec condary/Non n-Production: Time th hat equipm ment is ope erational but b perf forming non n-production n activities. Prim mary Prod duction: prod duction/purp pose.
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P20 00

Time

equip pment

is

utilised

for

prima ary

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PR

Prod duction Rat te: rate of material m mov vement per productive time unit Prod duction Mat terial / Prim mary Production Time Prod duction mat terial / P20 00

Production buff fer

A pile or stora age location n for bulk materials, m fo forming par rt of the bu ulk material handli ng process. his docume ent a buffer will be de efined as a production n time buff fer In th betw ween produ uction system ms of at lea ast 12 hours s.

Sys stem

A set of intera acting or in nterdependent entities s forming an a integrate ed who ole in betwe een Product tion buffers. In this t docum ent, a sys stem is def fined as eq quipment (or ( activitie es) coupled in suc ch a mann ner that wh hen one is affected the t comple ete syst tem is affec cted.

T00 00

Cale endar Time : The total possible p hours availablle. Ann nualised = 2 24 x 365 = 8760 8 (non le eap year)

T10 00

Con ntrollable Ti me: Availab ble equipme ent time att tributable to o any intern nal facto ors under th he control of o the operation that im mpacts produ uction. Tota al Schedule ed Time Unscheduled U d Time - Un ncontrollable e Time T100 = T000 N100 N2 200

T20 00

Upti ime: Equipm ment time available a for production n activities. Con ntrollable Tim me Equip pment Down ntime T200 = T100 D000

T30 00

Dire ect Operatin ng Time: Ti ime during which the equipment is operatin ng, eithe er performin ng Primary or Seconda ary productiion . Prim mary Produc ction + Seco ondary Prod duction = U Uptime Los st Time T300 = P100+P P200 = T20 00 L000

5
5.1 5

RE EQUIRE EMENTS S
Pla ant and Eq quipment Requireme R ents
An Information n Managem ment Syste em is requ uired, with the capaciity to run the require ed prog grammes for f capturing, validatin ng and rep porting on the t perform mance of all a productio on equ uipment.

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5.2 5

Sys stem and Procedura al Require ements

a) b) c) An Enter rprise Reso ource Plann ing system (ERP) is re equired to u pload all the e relevant se. informati ion for repo orting purpos An autom mated repor rting progra m is require ed to genera ate the requ uired management reports. ement Contr rol procedures are required to ens sure that ch hanges are Information Manage c formally controlled.

5.2.1

ting Targets s: Sett a) Calculate e Required % Overall U Utilisation To calcul late the required % Ov verall Utilisa ation the following is req quired: 1. 2. Pro oduction rat te Target (P PT) Pro oduction rat te (PR)

Calculate e the requir red Primary y Production n Time (P20 00) to achie eve product tion target by b dividing the t Product tion Target w with the Pro oduction Ra ate P200 = PT P / PR Then % Overall O Utili isation as p per definition n = P200/T0 000 b) Calculate e the % Effe ective Produ uction Determin ne what percentage o of time the equipment will be pro oducing at its Targete ed Productio on Rate. % Effecti ive Production = Prima ary Producti ion/Direct Operating O Tiime c) Calculate e System av vailability, b by modelling g the individ dual equipm ment availab bilities (EQAs). % System m Availability (SEA) = % EQA1 x % EQA2 x d) Calculate e % Use of Equipment Availability y % Use of o Equipmen nt Availabili ty = (% Ov verall Utilisa ation) / (% E Effective Pr roduction * % System Equipment E Availability A * % Controllable Time) e) OEE targ gets: OEE erall Utilisatiion x (Actua al Productio on Rate)/(Ta arget Produ uction Rate) ) = % Ove x (Actu ual Quality)/ /(Target Quality)

e Appendix D for an ex xample. See 5.2.2 Data Capturing g a) b) Daily / Shift reports of all equip pment: gene erated manu ually or thro ough system ms (LIMS, PIMS, MIMS, M MES, Batch, Sca ada, Prosco on etc.) Productio on log: Verif fication of c consolidated d data for all equipmen nt, machinery, plant and
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fleets of equipment e (Time alloc ation, Down ntime Code allocation, Production n statistics and Quality measure es) c) d) all be accou unted for ac cording to the t time mo odel for all p production Time sha equipment/plant at all a times. uential down n time: Def fine the % effect e equipm ment has on other Calculating consequ ch equipme ent it has an n effect on when w realisiing downtim me - 100% equipment, and whic , 0% has no o effect on production. p By using th he % effect t the stops all production, ential down n time is allo ocated acco ordingly to th he other eq quipment wit thin the conseque system. (See ( Appen ndix E for ex xample) Verified data d loaded d in the ERP P/Database for reportin ng.

e) 5.2.3

porting Rep From the Data warehouse e reports to be generat ted to visually display p performance e.

5.3 5

Peo ople Requ uirements

An a administrato or is require ed to mainta ain the Data abase. Per rsonnel train ned to maintain the info ormation loa aded into Database. Per rsonnel train ned to gene erate the req quired reports.

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APPENDIX X A: REFER RENCED DOCUMENT TS

AA RD 20_211, Equipmen nt Performance e Metrics

AA GTS 20 0

As sset Manag gement

APPENDIX X B: RECORD OF AMENDMENT S Issue 0 Version 1 : : New document (E E.F. Stonest treet, Novem mber 2010) ) June 2012, 2 Chang ged Total Ti me to Calendar Time Chang ged % Equip pment Utilis sation to % Use of Equ ipment Ava ailability Include ed % Effect tive Product tion into calculating % Overall Util lisation Include ed a 24 hou ur rule for Uncontrollab U ble time Define e % Controlllable Opera ating Time Update ed the defin nition for Target Define ed MTBS an nd MTTS Update ed Appendi ces Version 2 : August 2012. ged Busines ss Unit to Group G Under Aim, chang ge reference e document ts to Requir rements Doc cuments Chang Definition for L300 0 expanded d on Definition of N200 0 simplified Definition included d for PR Production P rate Correc cted definitio on of T200, Changed Available A to o Controllable and change ed Operatio onal to Equi ipment. Docum ment Numbe er amended d to reflect governing g A AA GTS (Se eptember 2012)

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APPENDIX X C: CALCU ULATION EXAMPLE E

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APPENDIX X D: TARGE ET SETTIN NG

Performan nce Targets.x xlsx

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APPENDIX X E: CALCU ULATING CONSEQUE C ENTIAL DOWN TIME

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APPENDIX X F: TIME ALLOCATIO A ON DESCIS SION TREE E

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APPENDIX X G: DOWN NTIME DES SCRIPTION Non-Cont trollable Tim me: Not schedul led to prod duce: Public Holiday: H Na ational holid day defined as a non-w working day by the operation. Non pro oduction sh hift: Shift de efined as a non-workin ng shift by th he operation where operatio ons do not operate o a 7-day week or o a 24-hour r day. Uncontrollab ble events (Force Maj ajeure): o abnorma al occurrenc ces which are greater than 24 hou urs in duratio on and Only events or co ould not hav ve been bud dgeted for, or exceeds s the budget ted time / pe eriod may be b booked un nder this se ection. Externa al Utilities: Impact due e to outside utilities suc ch as power r, water, rail systems, etc. Environ nmental: Im mpact due to o abnormal environmen ntal occurre ences such as excessiv ve rain that causes floo oding, earth hquakes, etc c. Labour: : Impact as a result cou untry wide industrial ac ction. Non Sch heduled Ho oliday: Los ss of produc ction time du ue to additio onal nationa al holidays, such as voting days s. Market Conditions C s: Loss of p production time incurred d as a resullt of market condition ns. Equipmen nt Downtim me: Unscheduled Maintena ance: Equipment Downtime related to o repair wor rk that does not form pa art of the weekly, monthly, annual maintenance s schedule (pr rogrammed in the ERP P). Sc cheduled Maintenanc M ce: Equipment Downtime related to o work that forms f part of o the week kly/monthly/a annual maintena ance, scheduled in the ERP. Operational Stops (Op perator indu uced): Acciden nt / Damag ge: All dow wntime as a result of o damage, abuse or accidents, , excludin ng equipme ent that for rms part of f Production downtime e as specified in this s document. Blockag ge / Stuck / Accretion n: All downt time as a re esult of bloc cked chutes s, crushers, , feeders, screens or r stuck equi pment. Diesel / Air / Wate er: Internal controllabl le downtime e associate ed with equ uipment not t being op perable due e to running out of these. Tyres / Ropes R / Ch hains: All do owntime related to tyre es, ropes or r chain failures. Ground Engaging Tools (GE ET): Exclud ding work re elated to sc cheduled maintenance m e replacem ments i.e. mill-, m bucket-, chute-, sc creen liners.

Lost Time e: Consequent tial: Upstrea am or dow wnstream: I Impact due e to other equipment, e modules or o section/s s experien ncing Downtime.

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St tandby: Spare equipment th hats not req quired at a point in tim me due to re edundancy, back-up or r c wh hich is imme ailable for use. u excess capacity, ediately ava

De elays: Operatio onal Consumables: Internal controllabl le stoppag ges assoc ciated with h operatio onal consumables no ot being available, a i.e. Reage ents, Magn netite, and d Floccule ent. Operatio onal Delay ys: Delays experience ed due to necessary y production n activities, , such as blasting, housekeepin ng, moves it i includes stoppages s f forming par rt of normal l operatio ons taking > 10 minutes s. Staff Re elated: Delays experiienced due e to meetin ngs, travellin ng, breaks, transport, , shift cha ange, etc. No Operator / Sup pervisor: An ny absentee eism that af ffects produ uction. Environ nmental: Lo ost productiion due to manageabl m e environm mental conditions, such h as dust, stagnant water, w rain, m mist, ventila ation, etc. Service Delays: Production d delays expe erienced due e to the ins stallation of, or lack of, , services s, such as survey, vent ilation, cons struction,..e etc. Safety: Lost time due to safety y inspection ns and safet ty related in nterventions s. Unalloc cated: Lost time, which h cannot be e classified or for when n no reason n has been n recorded d.

Direct Operating Tim me: Se econdary/N Non produc ction: Equipme ent is runnin ng/operation nal, but per rforming non n-productio n activities.

Pr rimary production: Equipme ent utilised for primary production.

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