Clinker factor Reduction

R J Modi

5th Nov 2012

09-04-07/SSA/DJ

Sep Best performing plant

Our journey towards moon ACC

Baseline 2011 1 PPC clinker factor (Percent) 67.0 65.5 62.0 ACC Moon 60.9 60.0

YTD Best performing plant ACC - Sep YTD

2 PPC clinker factor (Percent) Thermal energy 3 Clinker)

46.3

44.18

41.1

40.0 39.6

Significant progress in clinker factor, thermal energy But no substantial improvement in electrical and CPP PLF At monthly level performance, few plants have already achieved breakthrough performance

(Mj/t

3100

3081

292 6

291 8

290 0

Electrical energy 4 (kwh/t clinker) Electrical energy 5 (kwh/t grind) CPP PLF

73.5

73.3

63.2

61.0 60.5

41.4

41.0

34.4

33.9 32.0

6 (Percent)
ACC Limited

58.3 60.0

82.1

82.5

85.0

Board Presentation

KPI wise absolute performance across plants September 2012 YTD - average ACC
performance
Quartile 4 Quartile 3
BG

Quartile 2 G1, G2 LK W2,KO CD

Quartile 1

PPC clinker 1 factor (Percent)

76.9 MK CH TK KY

60.0

BE

PSC clinker 2 factor (Percent)

53.1 MK CH

DM,EN

JL

SD

BG

40.0

G2,CD

Thermal energy (Mj/t Clinker)

3569
MK JL W1 CH BG KY LK G1 W2

2900

G2

LK, G1

Electrical 4 energy (kwh/t clinker)

100
MK JL W1 BG CH KY W2, CD

61.0

W1

KO SD W2 G1,G2 LK

CD,TK KY

Electrical 5 energy (kwh/t cement)

57.4
DM BG MK CH,JL EN,BE

32.0

CPP PLF (Percent)

45
MK LK W1,TK BG CD JL CH KY

85.0

ACC Limited

Why SPC?
Appraisal Costs

Prevention Costs

Verification Quality Audits Inspection Equipment Vendor rating

Quality planning Quality assurance Inspection Cost Training

Failure Costs

Scrap Rework & rectification Re-inspection Downgrading Waste Failure analysis Customer complaints Warranty claims Liability Loss of goodwill
3

ACC-Q&PD,Thane

02.11-2012

Data Gathering
Flow of Process
Process Control Variables Process Control Variables Process Control Variables

Quality Assuanrance Interface

Output Input Raw Mix Input Pyro

Output Input Cement Grinding Output

Quality Parameters for which Cpk value to be measured

Raw Material LSF / TC Preparation R90 Mic/ R212 Mic

LSF / TC Kiln Feed R90 Mic / R212 Mic MgO

Clinker

Free Lime LSF MgO

Cement

SO3 R45 Mic Blaine (PSC)

ACC-Q&PD,Thane

02.11-2012

Review Mechanism
Every Shift
Process Engineers
Process Engineer to update process control chart . They should discuss variations in control charts with the Operator during the shift and log the corrective action to be taken to eliminate assignable causes

Daily
PPE

Weekly
Head - Production

Monthly
Plant Head

Shift Operators

. The process

On daily basis review control charts and plan for effective corrective action in the process and equipments.

control charts to be displayed in respective control room.

Analyze the charts

To hold weekly review meetings with Process engineers and operators and ensure implementation of the acion plan. Development of Control plan and Preparation of SOPs is responsibility of Production Dept.

To review progress on monthly basis with the team and present status in regional monthly review meetings.

with the help of process engineers.

Handover the charge

Value 1.05 0.95

X avg

UCL

LCL

Parameter Value

to the next shift operator explaining him about the variations and corrective action taken.

Signal

0.85 0.75 0.65 0.55 0.45

ACC-Q&PD,Thane

0.35 1 3 5 7 9 11 13 15 17 19

02.11-2012

21

SCCC EE EXAMPLE

Reading the heat maps performance snapshot (1/2)

L1

L2

L3 Raw meal preparation Raw mills Sara 2 MTBF, h 22.28 18.05 27.58 PRI, % 95.50 93.90 101.40 NAI, % 92.41 89.77 93.26 False air, % 54.00 31.00 9.00 Fan eff, % Power factor Opportunities Raise MTBF with better maintenance Monitor and raise power factor Start tracking power factor in S2 Lower false air % Monitor/ improve fan efficiency

SEEC upto Cement grinding

SEEC (raw material prepara tion)

SEEC (raw meal preparation)

SEEC (clinker production)

SEEC (cement grinding)

Sara 2 Sara 2

Sara 2
Sara 3

24.28
27.04

98.68
87.71

92.06
97.50

65.00
23.60 67.50 0.85

Plant name

kWh/t cement 90.12 93.17

kWh/t clinker 1.20 1.55 1.15

kWh/t clinker 28.13 28.86

kWh/t clinker 23.07 32.98

kWh/t cement 55.23

Clinker production Kiln Sara 2 MTBF, h 961.94 674.55 321.85 PRI, % 100.50 101.24 94.09 NAI, % 81.11 95.89 88.49 False air, % 10.82 10.11 9.30 66.91 PH1 fan eff, % Opportunities Reduce false air % Raise kiln NAI Start tracking fan efficiency in S2 (PH, Baghouse, Coal mill)

Saraburi 1 Saraburi 2 Saraburi 3

40.91 Sara 2 40.29 Sara 3

L2 - Colour coding is based on ranking across all the plants in region. Top 20% Green, Next 40% Yellow, Next 40% Red Cement grinding metrics Based on technical standards L3 Ball mills and vertical mills have different colour coding thresholds

Cement grinding Cement mills Sara 1 Sara 2 Sara 2 Sara 2 Sara 3 Power absorbed, % 82.50 84.70 83.80 81.30 80.70 MTBF, h 124.54 157.18 96.41 74.09 138.41 PRI, % 90.14 80.34 77.59 73.55 84.11 NAI, % 96.33 98.23 98.04 97.65 92.33 Power absorbed (PG/RP), % 88.00 57.90 56.90 45.20 71.00
2012 Legal entity

Opportunities Room to raise power absorption in mills and pregrinder/roller-presses Raise MTBF PRI needs to be further raised Start tracking false air and fan efficiency in S2

ACL GEOCYCLE EXAMPLE

Reading the heat maps performance snapshot (2/2)

Performance 2012 Jun YTD data
Capacity utilization - AF Definition of the parameter Specific GAV TSR TEE Overal l Design Capacity tons/ 000' t clk. 137.81 22.02 8.54 0.00 0.00 12.52 0.00 17.4% 270.8% 122.2% 112.1% NA 0.00 68.6 3.0% 98.8% 8.7% Design Capacity utilization % Planne d utilization % wrt to availability in region % Overal l Design Capacity tons/ 000' t clk. 148.08 0.0 0.0 0.0 0.0 83.5 0.0 7.5% 129.7% 20.8% 73.2% 34.8% 34.8% 1.67 17.5% 1.54 5.08 Capacity utilization - AR Design Capacity utilization % Planned utilization % wrt to availability in region % Overall Specific stock AF Overall Specific stock AR

Units

Rank

CHF/ tons of Clk. 4.78

tons/ 000' t clk. 5370.88

tons/ 000' t clk. 36705.00

Plant name Ambuja Nagar 1 Ambuja Nagar 2 Bhatapara 1 Bhatapara 2 Darlaghat Maratha Rabriyawas Rauri 11/26 14/26 15/26 13/26 16/26 23/26 25/26 24/26

30% 4.3% 1.0% 0.2%

16% 1.7% 0.9% -0.1%

404% 78.0% 13.9%

271% 143.7% 31.8%

883% 26.4% 4.8%

361%

132% 23.4% 60.0%

100%

0.34 0.23 0.22 0.33 0.21 0.06 0.00 0.02

0.6%
0.9% 1.3% 0.5% NA

0.3%
0.7% 0.4%

Opportunity to increase AF, AR consumption by increasing the design capacity of plants working at about 100% design capacity utilization (Ambujanagar 1) High potential savings through sourcing and increasing AR utilization in plants having good design capacities (Darlaghat, Rauri)

Short title, Department, Name/Function or Event/Creator, Date yymmdd, Classification

2012 Legal entity

Reading of heat maps Practices snapshot (2/2)

Practice (L2) Sample L3 practices (not exhasutive) Quality of RM Periodic assessment to improve availability of micro fine fly ash (dedicated grinding mills for available fly ash, assessing new sources) Minimize usage of aged raw material by using FIFO, traceability Score

Storage and handling of RM

No open storage of clinker, gypsum and other raw material with clear demarcation for different types to avoid mixing Maintain fly ash and cement homogeneity with blending arrangements

Feeding

Monthly optimization of grinding aid dosing rate Increase degree of automation for fly ash / slag / additive feeding system using DCS to control dosing

Grinding

Optimizing mill efficiency using periodical regrading or top ups of the grinding media, longtitudinal sieving and circuit sampling every 15 days Optimizing SO3 in cement using frequent sulphation tests

Plant can improve clinker factor with little capex by improving availability and storage of raw materials Technology can be an important lever to increase clinker factor, but will need capex

Others

Ensure exhasutive SLAs between GU and mother plants to ensure quality of clinker supply Benchmarking of CF across products every quarter

Technology

Plants spend time and resources to explore / study impact of technology changes in mineral component drying, separate grinding of mineral components, blending and mixing, flyash separation

Oranization

Dedicated cross functional team with a champion on clinker factor Separate team in the plant that is focused determine and developing alternate sources of mineral components

Performance management

Review of clinker factor such as in daily operations review, weekly by Head Plant Operations, monthly by Plant Director Training calendar and rewards and recognition mechanism

2012 Legal entity

Academy approach being used to drive performance improvement & capability building across plants
Key activities Dedicated COE champions 8 full time (3 for EE, 3 for CF & 2 for CPP) has been nominated as Centre of Excellence (COE) Champions to drive improvement across plants Module created for three critical areas EE, CF & CPP as guide book to help plants prepare road maps to reach aspiration values Hand books for training of young engineers and plant teams Critical performance & practice KPIs for the respective pillar at L1, L2 and L3 levels Plants to use this as a tool to identify opportunity areas

Module & Handbook

Heat Maps

Facilitation of plant excellence projects Model Plant

COE Champions to conduct plant visit & facilitate individual plant Observe performance and practices followed through plant walkaround Conducting workshop/ training in identified improvement areas
Training centre to be established in the respective model plants (e.g., Chanda for EE & CPP, Tikaria for CF) Model plants will also set example for break through performances for the respective KPIs

ACC Limited

Recommitment towards our aspiration and mini-moons (1/6)

PPC Clinker factor Percent Plant LK
ACC PPC Clinker factor Percent

Difference between Q412 YTD 2012 / Q113 - Q412 Q1 201 66.3 3 61.5 63.0 63.0 62.0 My Diff Moo 0.0 60.0 n 0.5 60.0 0.0 0.0 0.0 03 0.5 5.0 0.0 0.0 0.7 0.6 64.0 64.0 62.0

201 1 67.1 64.0 65.7 65.2 65.4

YTD SEP 66.4 62.0 65.6 65.7 62.8

NORT G1 H G2 TK

KY1

Q4 201 66.3 2 62.0 63.0 63.0 62.0

Diff 0.1 0.0 2.6 2.7 0.8 1.6 1.6 3.9 2.8 1.9 0.2 3.0 1.8

67.0

65.5

CH 1.8 63.7 0.4 63.3 EAST SD JL DM BG EN MK W1 SOUT W2 HWEST CD BE KO ACC

ACC Limited

68.9
-

71.6
-

70.0
-

67
-

63.0
-

74.5
74.4 72.1 68.2 68.9 70.6

72.1
76.9 74.8 65.9 64.4 65.8

70.5
73.0 72.0 64.0 64.2 62.8 63.7

70.0
68.0 72.0 64.0 63.5 62.2 63.3

65.5
69.0 69.1 60.0 63.0 60.0

2011 YTD Sep

Q4 2012

Q1 2013

67.0 65.5

0.4 60.0

10

Recommitment towards our aspiration and mini-moons (2/6)

PSC Clinker factor Percent Plant LK
ACC PSC Clinker factor Percent

Difference between Q412 YTD 2012 / Q113 - Q412 Q1 201 3My Moo n-

201 1 -

YTD SEP -

NORT G1 H G2 TK

KY1

Q4 201 2-

Diff 3.0 0.0 0.9 2.1 1.1 6.0 3.1 0.2 1.4

Diff 2.0 0.5 1.0 1.0 1.0 3.0 1.0 -

46.3

44.2 1.4 42.8 0.9 41.9 EAST

CH SD JL DM BG EN MK W1 SOUT W2 HWEST CD BE KO ACC

ACC Limited

47.5
44.3 44.6 50.2

47.0
42.7 43.4 45.1

44.0
42.7 42.5 43.0

42.0
42.5 42.0 42.0

40.0
40.0 40.0

0.2 40.0

44.7
49.2 55.0 49.4 -

41.1
45.0 53.1 47.2 -

40.0
39.0 50.0 47.0 42.8

39.0
38.0 47.0 46.0 41.9

38.0
40.0 40.0 40.0 -

2011 YTD Sep

Q4 2012

Q1 2013

46.3 44.2

0.9 39.6

11

Two way approach for achieving our aspirations...

Continuous Improvement

Breakthrough projects

Breakthrough activities

Use of micro fine fly ash from last field of ESP Beneficiation of fly ash by removing carbon particles by using
latest technology Separate grinding of fly ash / slag Transfer of surplus mills from Chanda to different locations Outsourcing of blending of grinding aid for PSC Use of a combination of accelerators and grinding aid Use of modified gypsum / low purity gypsum
ACC Limited

12

Lets work rigorously for next four days to prepare a way out for achieving our aspirations

ACC Limited