KPAMS Rev May 25 2010 Final for UGM

04/21/23 Berkarya Untuk Kelestarian Bumi Demi Kemajuan Negeri 1

ISPS-Code02-0009-DN

KPA Manufacturing Management Presented for Jurusan Teknik Kimia

Gajah Mada University


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Site Location

Bontang


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KPA Share Holder

KPA (Kaltim Pasifik Amoniak)Is a Joint Venture Company :

Mitsui Co.Ltd, Japan (75 %) Toyota Tsusho, Japan (25 %)

Developed based on BOT Scheme with PT. Pupuk Kaltim Tbk., Indonesian State Own Company,

situated in Bontang, East Kalimantan

To Produce : 2,000 MTPD Anhydrous Ammonia


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Business Profile (KPA Typical)

Proses Plant( BOT )

Raw Material(Long Term NGSPA)

Land(Leasing)

Buildings(BOT,Leasing)

Utilities Supply( BOT, Long Term Contract, Out Sourcing )

Product Storagingand Shipment( BOT)

Corporate Management (Business Continuity Management, Crisis Management,Marketing)General Management (Business Plan, Strategy, Risk Management, QESH-C Management)

Finance & Accounting Plant Management (Operation& Shipping, Maintenance & Inspection, Process Quality Control)

Human Resources Development , General Affair, Material Management Technical & Quality Management

Marketing (Off taking)


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KPA’s Manufacturing Management System


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Organization Principle

CHAIRMANCHAIRMANINTERNAL

DIRECTOR

INTERNAL DIRECTOR

INTERNAL DIRECTOR

COO

CEO

COOManufacturing

INTERNAL DIRECTORSEXTERNAL DIRECTORSCFOFinance & Administration

CHAIRMANNOT The Same Person


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The Accountabilities

INTERNAL DIRECTOR

INTERNAL DIRECTOR

CFO

FINANCE

COO

INTERNAL DIRECTOR

QESH MANAGEMENT

INTERNAL DIRECTOR GENERAL

MANAGEMENT

INTERNAL DIRECTOR

INTERNAL DIRECTOR

INTERNAL DIRECTOR

GENERAL AFFAIR

MANAGEMENT

INTERNAL DIRECTOR

COMPLIANCE MANAGEMENT

INTERNAL DIRECTOR

TECHNICAL SUPPORT

MANAGEMENT

INTERNAL DIRECTOR

PLANT MANAGEMENT

INTERNAL DIRECTOR

HUMAN RESOURCES

MANAGEMENT

INTERNAL DIRECTORMATERIAL

MANAGEMENT


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KPA’s Manufacturing Organization

QESH

Manager

TECHNICAL & MATERIAL MANAGEMENT

Manager

PRODUCTION

Plant ManagerDeputy Plant Manager

PROCESS ENGINEERING &

PROCESS QUALITY CONTROL

OPERATION & SHIPPING

MAINTENANCEMATERIAL

MANAGEMENTINSPECTION & ENGINEERING

PUBLIC RELATIONGENERAL AFFAIRHR DEVELOPMENT

VICE PRESIDENT MANUFACTURING

GENERAL MANAGER MANUFACTURING

RELIABILITY ENGINEERING AND

PLANNING

HR & GA

Manager

ENGINEERING

CFO

BONTANG FINANCE

INFORMATION & TECHNOLOGY

JKT FINANCE & ACCOUNTING

LEGAL & COMPLIANCE

OFFICER


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Vision & Mission

To Be A World Class Ammonia Manufacturing Company

To be a reliable supplier of ammonia in the world To ensure employees welfare To ensure profit to shareholder To ensure the plant facilities is reliable to operate when

transferred to PKT Participate in local & regional development through CSR

program

Mission

Vision


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Values

Time Investment ( On Time, Efficient, and Sense of Crisis) Solution Investment ( Solved Problem Oriented, Progress, and

Achievement) Social Investment ( Public Recognition Will Be a Social Capital )

Tireless

Humble

Focuses on the Objectives

Fairness

Continuous Improvement Culture, with Appearance Team-Work Solidity


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Policies

Business Conduct Guidelines BCM Policy QESH Policy Reliability Policy CSR Policy


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POLICY

MANUAL(Doc Level-1)

PROCEDURE(Doc Level-2)

WORK INSTRUCTION(Doc Level-3)

FORM & CHECK LIST (Doc Level-4)

Documentation Hierarchy


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BCG Contents


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BCM Policy


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QESH Policy


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Reliability & CSR Policy


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Manufacturing Philosophy Put QESH & Compliance as a First Priority (Clear Policy/statement

is required)

Long MTBF oriented rather than High Production

Focused on Long Term and Sustained Reliability Plans in all Manufacturing Functions

Staff Skill , Knowledge, work attitude , working environment, and staff welfare is in line with Company Benefit

Conduct Supplier Management correctly

Implementation of KPA’s Good Corporate Government is a must

Accountability shall exist in online Organization, Responsibility shall exist in Authorized Person


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HSE Indicators Incident Report Statistic Work Permit Compliance Safety Inspection Indices Weekly Safety Talk Man Hours Observation Card Statistic (New

Application) No LTA (Lost Time Accident) based OSHA

Requirement (1 x 24 Hours)


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Incident Report Statistic

64

79 78

50

95

126

60

76 73

46

0

20

40

60

80

100

120

140

NU

MBE

R O

F RE

COM

ENDA

TIO

N &

FO

LLO

W U

P

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INCIDENT REPORTED 2002-2010

INCIDENT REPORTED


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Work Permit Compliance

3606

4372

2473

5818

5234

4928

35333207

3645

7169 4158

1114

23717311698

0

1000

2000

3000

4000

5000

6000

2002 2003 2004 2005 2006 2007 2008 2009 2010

WORK PERMITT REQUESTED WORK PERMIT DEVIATION


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Weekly Safety Talk Man Hours

2008 2009 2010

615.3 615.3 615.3

410.7383.2

427.25

0

100

200

300

400

500

600

700

YEARLY SAFETY TALK MANHOURS

Safety Talk Manhours Achieved Targeted Safety Talk Manhours


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Observation Card Statistic

KPA STAFF & CONTRACTOR OBSERVED JAN - APR 2010

4

9

12

7

13

24

0

5

10

15

20

25

30

APD UNSAFEACTION

PROCEDURE

KPA STAF CONTRACTOR

WE CARE OBSERVATION JAN TO APR

25

1 111

8

16

31

003

0

5

10

15

20

25

30

35

APD UNSAFEACTION

PROCEDURE

JAN FEB MAR APR


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No Lost Time Accident Statistic

As of 25 MEI 2010

Total No LTA = 5,4228,905 hours & 3,227 days (As of 25 Mei 2010) Record ever reached = 564,711 hours & 440 days

564711

0

221,796

509,234

591,801

752,572

672,963666,850

569,935526,050

340,654

577,050

221,796

798,846

1,308,080

1,899,881

2,652,453

3,325,416

5,088,251

3,992,266

4,562,201

564711

5,428,905

00

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

2000 23JUL'01

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

MO

NTH

LY M

ANHO

URS

0

1000000

2000000

3000000

4000000

5000000

6000000

YEAR

LY C

UM

MU

LATI

VE M

ANHO

URS

200

1-10

YEARLY MANHOURS YEARLY CUMMULATIVE MANHOUR


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Mean Time Between Failure (MTBF) MTBF = Uptime/ no. unplanned shutdown +1*

Plant Availability % Availability =

MTBF/(MTBF+MTTR) % Availability = Uptime/(Uptime +Downtime )x

100% note : MTTR = Mean Time To Repair

Plant Utilization (%): (related to external shutdown)

PU = (1- (Standby Time/Uptime)) x 100 Production Efficiencies %

PE = Actual production/Nameplate(2000T/d) x 100% Overall Equipment-plant- effectiveness (OEE)

OEE = % Availability x PU x PE

Reliability Indicators


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5 6 7 6 47

2 1 3 3 2

86.8990.04

81.93 80.77

64.04

86.5591.63 92.96 90.33

96.74

65.96

0.00

20.00

40.00

60.00

80.00

100.00

120.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 End of

March 2010

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

Overall Plant Efectiveness No of Shutdow n MTBF (Days)Plant Availability (%) Plant Utilization

KPA Plant Reliability 2000 - 2010


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Down Time History

36.05 36.35

65.9670.2

131.61

49.09

30.53725.6797

35.38

11.9

30.644

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Till March2010

Total Down Time, days

External Causes

Internal Causes

Planned Turn Around


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Human Resources Indicators

Employee Turnover Head Count Effectiveness Training Management Effectiveness

(standard and individual gap competencies) Market Salary, Compensation and Benefit

Competitiveness


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Employee Turnover Statistic

181

1.1%2

204

1.0%2

206

0.5%1

198

0.5%1

199

2.0%4

210

1.0%2

212

3.3%7

216

1.9%4

222

1.4%3

224

1.8%4

-

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Employee Turn Over Resignation


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Head Account Productivity

181

2,552

204

3,235

206

2,879

198

2,844

199

2,250

210

3,003

212

3,195

216

3,190

222

3,030

224

3,203

0

500

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Employee Head Count Productivity


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Training Management Effectiveness

42

23

19

26

16

30

12

05

1015202530354045

StandartCompetency

Individual2008

Individual08/09

Individual09/10

Competency Gap

100%

55%

45%

62%

38%

71%

29%

0%

20%

40%

60%

80%

100%

StandartCompetency

Individual2008

Individual08/09

Individual09/10

Competency Gap


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Salary Market Competitiveness


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Production & Efficiency Achievement


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Financial ParetoLocal Fund Distribution

2.19%2.12% 1.70%1.92%

15.86%17.95%

16.49%

19.09%

54.57%

63.45%63.37% 63.26%

16.48%

24.15%

18.55%18.85%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

FY 2007 FY 2008 FY 2009 FY 2010

Salary & Benefit Vendors Pertamina DGT

Annual Cash Allocation

88.70%

17.90%

26.09%

73.91%

82.10% 82.65%

11.30%17.35%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

FY 2007 FY 2008 FY 2009 FY 2010

Local Spending Overseas Spending

Foreign Fund Distribution

0.00%

17.01%

2.06%7.03%

1.16%

90.18%

57.76%

89.10%

28.70%

3.36%3.94%

16.17%

21.29%

4.40%

55.13%

2.71%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

FY 2007 FY 2008 FY 2009 FY 2010

Shareholders Vendors Consultancy & Services Interest


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63.4 63.4 63.354.6

36.6 36.6 36.745.4

0

10

20

30

40

50

60

70

80

90

100

FY-2007 FY-2008 FY-2009 FY-2010

Fiscal Year

%

Natural Gas Added Value


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Part 2 Day To Day Management


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Integrated KPA’s Material Management System

MAINTENANCE(User Department)

PURCHASING WAREHOUSE

SUPPLIER

GUARDIAN(CMMS)

SUNSYSTEM

(FIN.ACC)PurchaseOrder

Invoice Payment

New Vendor Input Invoice Matching

Warehouse Notification

Material Requisition

Material Received

Delivery Order


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Inspection Management

PT.KPA ASSET

RISK BASE INSPECTION (RBI)

ROTATING MONITORING SYSTEM

OMNI TREND

HEALTH

SAFETY

ENVIRONMENT

OPERATING

EQUIP./ MATL.

FLUID DATA

HISTORICALDATA

SOURCES DATA

INSPECTION REQUEST( NORMAL &

EMERGENCY CONDITION )

KPA ASSET REGISTER

CMMS-GUARDIAN

RISK BASE INSPECTION (RBI)

ROTATING MONITORING SYSTEM

OMNI TREND

ANALYSIS ( DESIGN APPRAISAL, RLA & ETC )

AND RESULT

HISTORY MANAGEMENT& DOCUMENT

CONTROL SYSTEM

INSPECTIONPLANNING &PROGRAM

MANUFACTURER RECOMMENDATION

( IF ANY )REGULATIONCODE AND STANDARD

RESOURCES AND TOOLS MANAGEMENT

MANAGEMENT REPORT

COMPLIANCE


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Maintenance Management

TECHNICAL & ECONOMIC ANALYSIS

JOB FILES ( LOG BOOK )

RESOURCES MANAGEMENT

HISTORY MANAGEMENT

WORK CONTROLMAINTENANCE

PLANNING

INVENTORY CONTROL

JOB DEFINITION

PT.KPA ASSET( EQUIPMENT

MASTER)

MANAGERIAL REPORT

INSPECTION & QCEMERGENCY JOBSCONDITION

MONITORING


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Purchasing & Warehousing Management

USER ( MTC, PRD,

TSD, HR & MM )

JOB ORDER REQUEST ( JOR )

WORK ORDER ( W.O )

PURCHASE REQUISITION ( PR )

WAREHOUSE REQUISITION

( W.R )

ORDER POINT & ORDER QUANTITY

REVIEW

PURCHASING

PROCESS P.O

.

/

SUPPLIER / VENDORS / MANUFACTURER

RECEIVE P.O

WAREHOUSE INSPECTION( TSD )

DELIVERY MATERIAL

RECEIVEGOODS

ISS REQUEST FOR INSPECTION

INSPECTION PROCESS

ISS MATERIAL QUALITY INSPECTION

REPORT (MQIR)

MQIR ACCEPTED

MQIR REJECTED

GUARDIAN FILLEDREQ. FOR

SUBMITTING THE INVOICE

RECEIVING DOCUMENT

INVOICE VERIFICATION

PAYMENT

SUBMIT INVOICE

DIRECT PCH

ISS MATERIAL DISCREPANCY REPORT (MDR)

INFORM. & REQ FOR REPLACEMENT

SPARE PART, BULK, & CONS MATERIAL

(KEEP IN KPA WHS)

LUBE OIL & CHEMICAL

STORE LUBE OIL AND CHEMICAL AT PKT CHEMICAL

WAREHOUSE

FILL PICK LIST FORM & TAKE GOODS TO PKT

FILL PICK LIST FORM & TAKE GOODS TO PKT

CHANGE STOCK/BUILD STOCK INV < MIN

REORDER INV. REVIEW

REORDER INV. APPROVE

FINANCE & ACCOUNTING

CHEM STORAGE (PKT WHS)


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KPA Reliability Management Review PDCA Cycle

EQUIPMENT HISTORICALPROCESS DATA HISTORICAL

THREAT TO CONTINUES OPERATION

INSPECTION DATA ( VIB, THICKNESS,ETC )

PLANT & EQUIPMENTRELIABILITY REVIEW

ROOT CAUSE ANALISYSLIFE ESTIMANTIOM

MANUFACTURING STRATEGYPROACTIVE MAINTENANCE (ITPM)

INSPECTION TEST & PMREACTIVE TO PROACTIVE

MAINTENANCE

PLANNING & EXECUTION OF INSPECTION & MAINTENANCE

INCLUDE QA / QC


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KPA CSR System

STRATEGY & APPROACH :People Empowerment combined with KPA Capability to Empower The Community

PHYLOSOPHY :Effective and Future Oriented

VISION :Participating to Improve The Quality of Environment

& Society

MISSION :Empowerment of Local Resources

PROGRAMS

KNOW HOW

DISASTER RELIEF PLAN

ENVIRONMENT

SAFETY & HEALTH


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INTEGRATED ESH MS STRUCTURE

INTEGRATED ENVIRONMENT SAFETY HEALTH MANAGEMENT SYSTEM (ESH MS)

ISO

140

01

OH

SA

S 1

8001

SM

K3

PS

M

ESH Policy

LEADERSHIP & COMMITMENT

PLANNINGIMPLEMENTATION

& OPERATION

CHECKING & CORRECTIVE

ACTION

MANAGEMENT REVIEW

EHS Policy

ISO 14001:2004 Certified 2006OHSAS 18001:1999 Certified 2008SMK3 (PER.05/MEN/1996) Certified 2008PSM (29CFR1910) Implemented 2008KN-RCI (RESPONSIBLE CARE) Verified 2008OHSAS 18001:2007 Certified 2009 (Upgraded to new version)ISO 9001:2008 (To be Integrated in 2010)


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Integrated HSE Flow

CONTINUOUS

IMPROVEMENT

ESH POLICY

4. MANAGEMENT REVIEW

3. CHECKING & CORRECTIVE ACTION

18. Pemantauan & Pengukuran19. Evaluasi Penalaran20. Ketidaksesuaian, Tindakan Koreksi dan Pencegahan21. Pelaporan Kecelakaan, Incident, Investigasi dan Tindak lanjut22. Audit Internal dan Kepatuhan

2.OPERATION & IMPLEMENTATION

6. Sumber daya, Peran, Tanggung jawab & Kewenangan 7. Peltihan & Pengembangan (Training & Development) 8. Konsultasi, Komunikasi & Partisipasi 9. Dokumentasi 10. Pengendalian Dokumen 11. Pengendalian Rekaman12. Pengendalian Operasional13. Pre-Start Up Safety Review (PSSR)14. Mechanical Integrity15. Sistem Ijin Kerja dan Hot Work Permit16. Kesiagaan, Tanggap Darurat, & pemulihan17. Pengendalian Kontraktor

1. PLANNING

1. Proses Safety Information2. Aspek Lingkungan & Identifikasi Bahaya (Hazarad/Aspect Ident.)3. Perundang-undangan & Persyaratan Lain ( Rules & Regulation)4. Tujuan, Sasaran, dan Program Management Lingkungan (OTP)5. Management of Change (MoC)


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Risk Management DiagramIDENTIFICATION OF POTENTIAL RISK / THREAT AND

LOSS TO KPA BUSINESS / OPERATION

ENVIRONMENTAL RISK BY ENV ASPECT & IMPACT( ISO : 14001:2004 )

OCCUPATION HEALTH & SAFETY BY HIRARC, JSA, OBSERVATION

CARD, MCU( OHSAS 18001:2007, SMK3 )

PROSES SAFETY BY PROCESS HAZARD ANALYSIS ; HAZOP,

FMEA AND RBI( PSM – US OSHA )

BUSINESS RISK THREATBY BIA AND RA

( BCM – BS25999 )

PORT SECURITYBY ISPS CODE

RISK ASSESSMENT( EVALUATING AND RANGKING )

DOES THE RISK / THREAT

AT AN ACCEPTABLE LEVEL ?

YES

NO

MANAGED & CONTROLRISK / THREAT

DEVELOP OBJECTIVE TARGET & PROGRAM TO REDUCE RISK/

THREAT TO ACCEPTABLE LEVEL

PROPOSED MEASURED (LOSS MITIGATION & RISK TREATMENT)

POLICY, PROCEDURE, WORK INSTRUCTION, INTERNAL RULES &

REGULATION

RISK MATRIX


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HRD Management Diagram

COMPETENCY ANALYSIS AS REQUIRED

VISION / MISSION PT.KPA

COMPANY OBJECTIVE

COMPANY STRATEGY

CURRENT HR COMPETENCY AT PT. KPA

HR COMPETENCY PROFILE FROM SYSTEM

HRM SYSTEM ANALYSIS

HUMAN RESOURCES CORECOMPETENCY REQUIRED

INTERNAL ANALYSIS

COMPETENCY GAP :- CURRENT HR COMPETENCY

- HRM SYSTEM

CBHRM STRATEGY PT. KPA

RECRUITMENT & SELECTION

COMPENSATION & BENEFIT

TRAINING & DEVELOPMENT

PERFORMANCE APPRAISAL


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Social Life ManagementThe Paradox of Humanism

MANUSIA

PERBEDAAN

MAHLUK INDIVIDU

GLOBALISASI & KEMAJUAN TEKNOLOGI MENDORONG KESADARAN KEBERSAMAAN

SEKALIGUS OTONOMI INDIVIDU

UNIK / EXCLUSIVENILAI-NILAI SPESIFIK

SUKU

DAERAH

AGAMA

MAHLUK SOSIAL

KESAMAAN

KEBERSAMAAN / INCLUSIVENILAI-NILAI UNIVERSAL

FKK

PERISKA

SPORT COMMITE

KOPERASI

RAS


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04/21/23

Compliance Committee FlowCompliance Committee Flow

COMPLIANCE COMMITTEEPresident Director ( Chief Compliance Officer )

Directors ( Compliance Officer )Vice President Manufacturing

GM Finance, Accounting & AdminHRD & GA Manager

GM ManufacturingPlant Manager

Technical & MM ManagerHRD & GA Manager

GM FA & AdministrationFA Manager( Jakarta )

SuperintendentsSupervisors

Employees(Protection of Anonymity and Whistler

Blower Againts Retaliation)

COMMISSIONER


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Closing Remarks

Documents

KPAMS Rev May 25 2010 Final for UGM