Challenges & Overcoming
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1 IMI INTERATIVA NEWSLLETER Issue 04, 2016 Challenges & Overcoming In the face of 2016 has been a difficult year, IMI InterAtiva has been able to meet its goals within its possibilities. Lean Manufacturing, for instance, exceeded in 1% the expected goal. Page 13 Events In 2016,s last quarter was held the Rio Oil&Gas Fair, the first IMI InterAtiva agents meeting, among News IMI Orton has obtained CRCC Petrobras Registration for its entire product line through IMI others. Page 03 InterAtiva Page 10
2 SUMMARY 03 Events 10 News 13 Lean Manufacturing 20 Interview 21 Visits Events IMI InterAtiva Agents received training in IMI Code of Conduct and Compliance. On November the first IMI InterAtiva Agents meeting was held in order to present and discuss IMI Code of Conduct and Compliance. The topics covered during the two-day meeting with IMI InterAtiva representatives and vendors were: > IMI Institutional > Products and Services > Code of Conduct > IMI Compliance > IMI Learn activities > Lean Manufacturing and IMI InterAtiva Improvements > National Market, Projects and Future Plans > Brainstorm of Commercial Improvements > Satisfaction Survey > Etc. About IMI Interativa Newsletter IMI Interativa newsletter aims to inform and keep our customers, suppliers, partners and Stakeholders updated on the most important news of the company and IMI plc group. Comments or suggestions Do you have any questions, comments, criticism or suggestions? Please send an to: 2 3
3 IMI Critical Engineering was present at the Rio Oil & Gas 2016 Exhibition. Engineering GREAT the IMI Way Another edition of Oil & Gas Fair was held in Rio de Janeiro, Brazil from 24 to 27 October IMI Critical Engineering was present at the Fair, being represented by some companies that offer great solutions to this sector, such as IMI InterAtiva, IMI Orton, IMI Remosa, IMI Truflo Rona and IMI Z&J. This edition motto was Paths to a Competitive Oil Industry. The debates covered the areas of Downstream, Upstream, Gas and Energy, Governance, Sustainability, HS&E (Health, Safety and Environment), Compliance and Geopolitics. Besides that, the 18th edition of the Rio Oil & Gas Fair registered more than 100 speakers from 22 countries, promoting relevant debates about Oil Industry. 4 5
4 Vote Counting CIPA ELECTIONS 2017 From 21 to 30 November, 2016, IMI InterAtiva called its employees for the election of the Internal Commission for the Prevention of Accidents (CIPA) term. CIPA is a joint commission composed of the employer and employee representatives,, elected by secret ballot in accordance with item 5.1 of Regulatory Standard NR5, Internal Commission for the Prevention of Accidents (CIPA) aims to prevent work-related accidents and diseases to make the work permanently compatible with the preservation of life and the promotion of worker s health. However, the accomplishment of this goal depends directly on the commitment and participation of the employer and employees. The Internal Commission for the Prevention of Accidents CIPA is regulated by the Regulatory Standard NR5, approved by Ordinance No on June 8, 1978 and repealed by Ordinance SIT No. 247 on July 12, 2011 of Ministry of Labor and Employment MLE. This year six employees became candidates and one candidate was nominated for reelection. The voting and vote counting were carried out on December 20, and elected the following members of the 2017 commission: José Renato Passos, Cristiano Paiva, Lucas Souza e Cícero F. Santana Neto. 6 7
5 Internal Workplace Accident Prevention Week - SIPAT 2016 On November 7-8, two events were promoted by CIPA management 2016 as part of Internal Workplace Accident Prevention Week (SIPAT). On November 7, Gedore s Commercial Manager, Guilherme da Cruz, carried out training for all the employees on how to handle, conserve and preserve tool s conditions of use (screwdrivers, pliers), according to the factory warranty. These elucidations make possible to increase worker safety and reduce work accidents. Mr. da Cruz presented some cases of tool misuse, incorrect adaptations and how these practices endanger high risks of accidents. On November 8, IMI InterAtiva Safety Officer Paulo Thomaz reinforced the group s safety policies, and exposed cases of good practice as well as accidents at work in other IMI plants. 8 9
6 Petrobras Profile Petrobras is a publicly traded company operating on an integrated basis and specializing in the oil, natural gas and energy industry. It operates in exploration and production, refining, marketing, transportation, petrochemicals, distribution of derivatives, natural gas, electricity, chemical-gas and biofuel segments. News IMI Orton has obtained CRCC Petrobras Certification Investments R$ 76.3 billion Net Revenue R$ billion Shareholders ¹ Global Presence 19 countries² Number of Employees Daily Output 2 milhões 787 mil barris de óleo equivalente por dia Proved Reserves billion barrels of oil equivalent (boe)³ Production Platforms 122 (64 Fixed; 58 floating)4 Refineries 16 (3 abroad) Oil Product Production 2,026,000 barrels per day IMI InterAtiva through its dedicated and updated commercial and engineering team proudly shares the obtaining of the Petrobras Certificate of Registration and Record Classification (CRRC) for the entire line of IMI Orton tri-eccentric butterfly valves. Totally, there are 9 product lines. The purpose in obtaining the certificate was to expand the possibilities of participation in Petrobras bids, which according to Forbes in 2015 ranked 14th among the world s largest oil companies with production of 2,6 million barrels per day¹. In a slow recovery after the fall presented in the last 2 years, Petrobras is a benchmark in the domestic market and Certification (CRCC) may generate new business opportunities in the market where IMI Critical Engineering acts. Upon obtaining the registration, queries to IMI InterAtiva s products sent to Petrobras through its portal (Petronect) increased, in particular about instrumentation valves. The expectation, in general, is to increase the possibilities and competitiveness of IMI InterAtiva and Orton in the national oil and gas market goal is to obtain certification for all valve lines marketed by IMI InterAtiva, including IMI Truflo Rona special ball valves. Vessel Fleet 181 (55 owned) Pipelines 7,517 km de oil pipelines and 7,151 km gas pipelines Form 20F 2015 data Last Update: June 2016 Biofuels 5 biodiesel plants (3 owned and 2 in partnerships); 10 ethanol plants in partnerships Thermoelectric Plants 20 (owned and leased)5 Solar Energy 1 voltaic solar power plant Service Stations 8,176 (Brazil) and 382 (abroad) Fertilizers 3 plants 1 Bovespa + Adrs + Fia and FGTS quotaholders 2 Includes Brazil and 4 representative offices 3 ANP / SPE criterion 4 Includes a platform abroad 5 Natural gas or fuel oil-fired 10 11
7 Lean Manufacturing Lean and HS&E Assessment In the first week of December, IMI InterAtiva hosted Mr. Maurice Tunstall Group Head of HSE IMI HQ UK and Mr. Josh Jeffers - Director Manufacturing at Norgren, Detroit USA for the 6th round of Lean and HS&E Lean Assessment business results were presented, with special attention to the sanitation market, which was responsible for 40% of the production volume on the shop floor (AWWA sanitation products). One of 2017 prospects is the resumption of supply to major markets such as oil and gas, sanitation, sugar and ethanol. Josh Jeffers No critical / serious issue that needs immediate action was raised, which proves our good work in accident prevention. The main highlights were: Technical Assistance Toolbox Gemba Walk frame with improvement actions (before and after) Obeya Process SMED activities with new vertical flange holder 12 13
8 Other highlights were the TPM program, good visual management through SQDCP boards, verification Poka yokes, material requisition Kanban, SMED activities and the Obeya operative system - resulting in a 66% audit score (1% above the goal). Lean recommendations given by the auditors were: > Conduct predictive maintenance analyzing wear items such as pumps, motors, air regulators and lubricators; > Classify and organize outdoor tent areas where cast models are stored; > Schedule an event to elaborate the pull system (characteristic in Lean management system) for standard products; > Prepare an event / training to elaborate the Heijunka pulled system on the shop floor, find the Obeya process used to level the projects and; > Extend the use of SQDCP boards and the new flange holder standard for receiving and shipping areas. For HS&E Lean, the highlights were the great work with HS&E documentation and procedures that made possible to reach a score of 8.5 (0.3 above expectation). The good HS&E score made the auditor recommend IMI InterAtiva as a reference to IMI Norgren Brazil in its current deficiencies. Recommendations for future improvements were: > Implementation of additional support in shelves; > Routine checks by the logistics team to ensure safety in relation to damaged pallets and boxes - including Gemba Walk, such as material storage in boxes and pallets; > Make additional observations to review what is expected and what is really happening and review activities in Technical Assistance area. From the day after audit to mid-january, IMA InterAtiva Lean team will be focused on developing the improvement plan (Lean and HS&E Lean) to follow evaluation recommendations, gemba walks and employee feedback. Company Main Objectives, KPIs and Critical Success Factors. IMI InterAtiva has presented an excellent performance in safety records with zero accident in the last 12 months. There was a 64% reduction in COQ (Cost of Quality) composed of rework, fines for delay, guarantees and scrap. It is expected that this trend will continue with the use of A3 thinking. In addition, IMI InterAtiva presents a great trend in On Time Delivery (OTD) factor for Despite the low level of productivity due to the economic recession in Brazil, the stock turnover has slightly improved, but still requires evolution through the use of the A3 report. Auditors feedback after the assessment: It was a pleasure to work with such a prepared and engaged management team. The preparation work completed by the senior management team was exemplary and greatly assisted the assessors to cover all their requirements. The InterAtiva team has faced a difficult economy which is reflected in their inventory turns and productivity. Despite the tough economic conditions the team has continued their An IMI InterAtiva team conducted the Gemba Walk on the eve of the audit, and removed 102 kg of various and/or unused materials from the workplace, as well as identified a number of actions that needed to be done by the Audit. The perceived actions were published in the respective areas with photos and carried out according to the possibilities. This practice was considered correct by the auditors who highlighted it as exemplary because it guaranteed zero (no) critical / serious observation in the immediate actions and demonstrated a good perception in accident prevention work. efforts on continuous improvement. It is apparent after assessing the site that we can say with a high level of confidence that once the obeya process has fully taken foot along with a true pull system for standard products, the InterAtiva team will be well on their way to exceeding expectations
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11 Interview Meet one of the people responsible for keeping the company always clean and pleasant. Visits Name: Raquel Marques da Silva Age: 44 (03/11/1972) Marital Status: Married Education: Incomplete Elementary Education Profession: Cleaning Assistant Time of company: 4 years (from 2012) Birth city: Sorocaba, São Paulo City of residence: Sorocaba, São Paulo Left to right: Denis Miranda and Luiz Vitali (IMI InterAtiva) and Osmar Leite (Petrobras). Left to right: Bruno Donizete and Luiz Vitali (IMI InterAtiva), Ramiro Lanzas and Diego Huc (Mueller Co.) IMI InterAtiva has the satisfaction of interviewing in this edition a person who has worked for a long time in the company, with a service of great importance for the well-being of all. Her work even is the basis of at least 2 principles of 5S program. Raquel Marques da Silva has been one of the people responsible for cleaning and maintaining the company for more than 4 years through a third-party company. She takes care of the cleaning of several areas, such as Administrative Building, Production, Quality Control Rooms, Work Safety, Obeya, Inspectors, Expedition, among others. She arrives at work punctually and prides herself on performing their daily tasks on time and with quality. Raquel is married and has two children (one of 26 and one of 24 years old), she began working at age 17 as a machine operator in a sewing thread mill. After a few years she worked in organizing and cleaning her sister s house for 11 years. As her sister moved to another city, Raquel sought other opportunities. Then, in 2012 she began her career in IMI InterAtiva through a company of Outsourced Services called Panna. Her supervisor and co-workers describe her professionally as a very dedicated, organized, caring, understanding and easy to get along with person. Raquel and her husband Valter TV antenna installer - enjoy spending their free time resting, watching TV, and when possible traveling to a family farm. Currently, Raquel helps her youngest son, Fernando, with the expenses of books and transportation for his computer science degree. Her dream for the next few years is to finish her house. Raquel is happy with her personal and professional life: I love working here in IMI InterAtiva. I know and I get along with everyone [...] I feel at home. Raquel da Silva 20 21
12 Creation and Edition Bruno Henrique de Oliveira Images IMI InterAtiva istock Texts Bruno Henrique de Oliveira Carlos Henrique Costa Translation and Proofreading Viviane Cardozo Marcia Ruiz Next issue April
13 Contact IMI InterAtiva Av. Garabed Gananian, 386 Distrito Industrial, Sorocaba - São Paulo Brasil Tel: +55 (0) Fax: +55 (0) IMI Orton Via Dei Bazachi, Emilia-Romagna Piacenza - Italy Tel: +39 (0) Fax: +39 (0) IMI Truflo Rona Via Grilli, 2/A Zona Industriale Piacenza - Italy Tel: +39 (0) Fax: +32 (0) IMI Critical Engineering Lakeside, Solihull Parkway Birmingham Business Park Birmingham B37 7XZ United Kingdom Tel: +44 (0) Fax: +44 (0)
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