August 2017

Genrec Engineering Newsletter

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Message from the Managing Director

Winter is Here!

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Dear All,

Welcome to the August edition of The Envoy!

We have finalised our Year End reporting and are also in the process of closing out some of our current projects. The action of having to close something out also signifies “new beginnings”, such as the start of the new Financial Year or the start of a new projects. Lets make use of these new beginnings to focus on continuous improvement and make an ongoing effort to

improve our products, services and processes.

In doing so, our HSE Department has put a very insightful article together on Housekeeping. We would like to challenge every department to ensure that their areas are neat and tidy at all times, which will not only help to increase our safety, productivity and eliminate waste (the time spent to look for items), but will also increase our sense of pride.

Our procurement department’s article is a reminder of the processes involved in creating vendors and also completing requisitions. Let’s all cooperate by making sure we follow these guidelines.

The Metals Industry’s wage negotiations are still underway. As soon as an agreement is reached, Genrec will communicate any applicable changes to everyone involved.

Enjoy the read and please remember to send your suggestions on improvement to your Departmental HOD or directly to Moses Tshabangu.

Regards,

Fergus Derwin

S A F E T Y

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VFL Stats: July 2017

LTIFR Target: 0.50

Planned

Management Visits

Actual

Management Visits

Participation

Rate

130 124 95.4%

Fittings Bay

CHAMPIONS LEAGUE

WINNERS

Champions League Winners

Month Area Name Points

May 2017 Plate Bay Super Sport United 31.14

June 2017 D-Bay Dynamos 16.33

July 2017 D-Bay Dynamos 18.5

Planned

Management Visits

Actual

Management Visits

Participation

Rate

62 68 110%

S A F E T Y

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To maintain a safe and healthy workplace, housekeeping must be a priority. Poor housekeeping can present hidden hazards that may cause incidents, including tripping on loose objects in walkways, being hit by falling objects, and slipping on wet or dirty surfaces. Housekeeping is the responsibility of every person on site. Housekeeping in our workshop is not up to standard and focus should be placed based on the 5S’s Awareness. 1. Sorting Steps:

Divide the workshop or plant into areas and assign these areas to groups. Identify a “discard storage” area for each area. Identify the hiding or storage spaces for unnecessary items Separate the necessary items from the unnecessary items. Store necessary items in the correct storage space. Tag unnecessary items. Store tagged items in the “discard storage” area for one week. Ensure that all tagged items are not required anymore. Discard tagged items after one week.

2. Shine Steps:

Clean (sweep and wash) equipment, cupboards, floors, windows, walls and shelves (everybody

cleans up everything). Eliminate sources of dirt and / or reduce the amount of dirt (e.g. use dust covers). Investigate the causes of dirt and grime. Implement a plan to eliminate the source of dirt and grime. Compile a defects list (damaged items and defects). Compile a routine cleaning roster (what, when, where, who, how).

HSE: Housekeeping

S A F E T Y

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3. Signpost Steps:

Organise the workplace so that the necessary items can be easily and quickly accessed.

Organise necessary tools and equipment close to the point of use.

Design a storage area/layout. Compile an inventory list (e.g. per room, storage place,

cupboard and index for files). Display operating procedures close to equipment and ma-

chines. Display and update the cleaning roster. Mark shelves / files, cupboards / keys / machines. Demarcate “keep clear” zones, walkways, work and storage

areas.

4. Simplify work steps:

Brainstorm wasteful activities in order to make work easier and/or safer. Generate ideas.

Evaluate and select ideas. Implement selected ideas (action plan). Store equipment at the correct height. Reduce the amount of equipment required.

HSE: Housekeeping (cont.)

S A F E T Y

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5. Sustain Steps:

Everyone understands, obeys and participates in the set rules. Do unscheduled inspections and/or planned audits. Perform cleaning actions according to roster. Take disciplinary action (when necessary). Report problems and follow up corrective actions (shift meetings). Keep everything clean and in a constant state of readiness. Implement monthly checklist evaluations. Implement a three monthly tagging and shining action.

Be Proud of your working Environment. Regards, Steven Raley HSE Manager

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The TIMWOOD model has been used to identify and eliminate waste from all the activities we carry out at Genrec. We have focused mainly on production activities, but Waste is not only found on the shop floor but is also found in the office.

WASTE IN THE OFFICE:

In this article we use the TIMWOOD model to highlight a few wastes that are found in the office. Transportation This is when we move the product we are working on, the act of moving it does not change the form or function of the product. It does not add value to the product. Moving files in and out of storage and excessive filing of documents are a waste. Transportation waste occurs when a document requires multiple sign-offs. Someone has to physically move the document to the all the required signatories. Inventory Unread emails waiting to be read and processed are a waste, they may contain critical information that if acted upon would add value to our clients. Similarly being copied on numerous emails that have no bearing on your tasks creates excess inventory that has to be processed. Do not ignore people that send irrelevant emails, rather discuss with them or create a rule to decide which emails must be forwarded to your inbox. Queues of paperwork are inventory waste, we should endeavour to reduce paperwork waiting for processing on our desks, and process the paperwork in our in-tray as quickly as required by our customer. Movement People moving between buildings for meetings when a telephone could add the same value is a waste. Walking to deliver paperwork, or to get information or resolve a drawing query is also a waste. This activity does not add value to the client. We have to try and reduce the number of times we walk to deliver paperwork. Another example of Waste is having to open a computer file to find key phone numbers when printing the phone number list and hanging it next to the phone would reduce movement to the computer to open the file.

Waiting Waiting for latecomers to a meeting is a waste as the people waiting are not adding value to our clients. Out of courtesy to those who are punctual always start meetings on time. Late comers to meetings often result in rework as information that has been shared and discussed has to be explained again to them. Documents usually tend to wait for multiple signatures. In this time of waiting for a requisition to be signed or for a report to be approved we are not adding value to the client. Waiting for information is a common waste that occurs. It is essential that we provide information or reports when they are needed so that decisions that can add value to our clients are made timeously. Waiting for a slow computer is a common waste, we should periodically maintain our computers to keep them running at optimum speed.

LEAN MANUFACTURING:

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Over-production Overproduction is doing more than what the customer wants, a common example is making more copies just in case more people will require the report. Creating reports that no one reads is a common waste in offices. Carry out a periodic review of the reports you produce and ensure they still add value to the customer. Over-processing This occurs when we do something that is not necessary, or doing something that the client has not asked for. Time spent in adding colour to a report when the document will be printed in black and white for review in a meeting. A report should have only the information required, presenting extra information does not add value to the client and is a waste. Defects Rewriting a report because a junior staff member wrote it incorrectly is a common waste. Other examples of defect waste include missing information on reports, order entry errors, data entry errors. Filling forms with inaccurate information results in rework time verifying the data and trying to find the wrongly filled form. Waste is not only found on the shop floor but in our offices as well. It is important for everyone at Genrec to look out for TIMWOOD and eliminate waste from our processes. Machine shop Improvements The machine shop team identified a problem with slow processing speed on one of their jobs and requested the assistance of the Lean Champion to improve the process speed. A root cause analysis was done in conjunction with the Machine shop team. We identified excessive vibration and chatter due to long tool overhang as the cause of the slow processing speed. At the end of this exercise an improved tool that is designed to resist vibration was recommended for purchase. This recommendation was adopted and the new tool has significantly improved metal removal rates, increasing the feed from 0.3mm up to 3mm per cut. Congratulations to the Machine shop team for identifying an area that needed improvement and working with a positive mind-set to find an appropriate improvement solution. Remember you do not always have to know the solution to your problem. Your improvement suggestion could be as simple as highlighting a problem that is preventing you from fulfilling your task efficiently, like what the Ma-chine shop team did. A team will then help you analyse the problem and recommend an appropriate solution. Send your Improvement suggestions to your supervi-sor, or discuss them with your Lean Champion, Moses, on the shop floor.

Your Lean Champion, Moses Tshabangu

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Liciastar – Kathu Solar Plant (Job 866) Job 866 at Kathu Solar Plant, managed by Prevashni Mudaly was 51% complete at the end of July 2017 and included the following achievements at the time:

Paint system changed from three coat to two coat First delivery manufacture completed on time Down Payment received Salt Pump Structure Delivered Erection commenced Phase 1 and 2 Cold erected Access Stairs 2 Of 4 stairs completed

PROJECT MANAGEMENT FEEDBACK: Kathu, Job 866

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BEFORE a Project starts: Data Books are implemented from the “Kick-Start” of a Project and includes all documents required on the project, from: Raw Material, Preparation (Nesting’s), Workshop Fabrication, Machining, Corrosion Protection (Painting/Galvanising) to Documents Review, Final Approval from the client, Transmittal and Document Control. These doc-uments are kept according to the retention period indicated in our Documents Retention Policy. The following documents need to be approved by the client: 1. Index 2. Quality Control Plan

Fabrication QCP

Machining QCP (where applicable)

Paint QCP (where applicable)

Galvanising QCP (where applicable) 3. Welding Documents

WPS

PQR

WTQR

List of welders 4. NDT/NDE Reports

NDT Procedure ( available from NDT service provider)

NDT Technician Qualification

NDT Calibration of equipment Once the documents have been approved by client the go ahead for fabrication has been given, a Master file is opened with relevant documents. The client will be required to send a sample of the type of filing and labelling required onto a master file. 5. Material traceability

The nesting’s are received from the supervisors at the workshop.

Traceability is then captured according to the nesting.

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DATABOOKS:

Genrec Job No

Mark Mark Item

QTY req.

Quantity nested

Mat. Type

Lot Material size &

Grade Cast & slab

number Page

number

228D 933-3025 P3028 2 2 PLT 0022 10PLT-S355JO+AR F203458-4380 1 to 2

228D 933-3026 P3028 2 2 PLT 0022 10PLT-S355JO+AR F203458-4380 1 to 2

228D 933-3031 P3028 2 2 PLT 0022 10PLT-S355JO+AR F203458-4380 1 to 2

228D 933-3040 P3057 1 1 PLT 0031 10PLT-S355JO+AR F203458-4380 1 to 2

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6. NDT Reports (UT, Lamination, MPI ,PT, RT)

Receive and capture the NDT reports and a drawing indicated were the tests have been performed from the QC Inspectors.

7. Coating and Corrosion Protection

Receive and capture reports - Blasting

- DFT readings

- Galvanising

- Paint Reports

- Galvanising

- Paint specification

- The paint reports are received from the Inspector’s Once the Paint have been done

7. Releases

Receive, capture and attach the AR (Release note)

The client review and approve the data book and sign the COC (Certificate of Compliance) We keep the original, whilst the copy and a CD of the book goes to the client Genrec keep the documentation as per document control procedure QP-04-2 (control of records) (minimum of 5 years)

Genrec Job

number

Genrec drawing number

Number of items test-

ed

UT Report number

Page num-ber

228D 933-3317 1 UT011926 1

228D 933-3050 1 UT009687 2

228D 933-3050 1 UT009688 3

228D 933-3022 1 UT009725 4

Genrec Job

number

Genrec drawing number

Number of items

painted

Paint Report number

Page number

228D 933-3046 4 385/11-22 1

228D 933-3051 1 385/11-22 1

228D 933-SP3027 17 385/11-22 1

228D 933-SP3030 1 385/11-22 1

Genrec Job number

Quan-tity on AR

Genrec drawing number

Correspond-ing AR num-

ber

Page num-ber

Ref page number

File number

228D 1 933-SP4377 SUB-

000080106 1 to 13 1 1

228D 1 933-SP4378 SUB-

000080106 1 to 13 1 1

228D 1 933-SP4379 SUB-

000080106 1 to 13 1 1

228D 1 933-SP4380 SUB-

000080106 1 to 13 1 1

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C O S T

NEW WORK SECURED IN JULY 2017:

HR: TRAINING FOR SEPTEMBER 2017

Apprentices

Genrec has passed the accreditation with MerSETA and was awarded full accreditation. Thank you to everyone who assisted in obtaining this!

NAMB, (National Artisan Moderating Body) accreditation are in progress as well.

Welding Simulator

Training of our own welders.

Genrec will be training other companies on the simulation welding machine in the near future.

Other Training

Safety training will be booked in September

For more information on Training, please contact Tammy van Niekerk via email or on her landline

(011)876-2599 | tammy.vanniekerk@genrec.co.za

Client Project Job No.

Fabrication

Fire Raiders Fire Tanks 880

Eskom Matimba Mixed Ash 881

SMEI Lonmin Low Water Bridge 997F

Machine Shop

FLSmidth Machining of FLS free-issue vibrating screen components, Drive beams, Feed Boxes and Deck Frames

795M5

DCD Machining of Bogies 794-M3

Spares Supplies and Services Crusher Main Frame - Blasting and MPI 797-M1

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C O S T

1. Procurement is a structured procedure designed to consult the market for the purchase of goods and ser-vices. To obtain the desired quality of services, supplies and works at the best possible price.

Genrec’s Procurement department specialises in;

Procurement of good and services

Vendor Management The Genrec Procurement Department team members include:

Booker Gondora - Procurement Manager

Nomathemba Ndlovu – Technical Buyer

Simon Tshabangu -Senior Steel Buyer

Joseph Malaza - Junior Buyer

Nthabiseng Diphoko - Junior Buyer

Nosipho Mdubini - Supply Chain Assistant

Nadia Meyer – Supply Chain Administrator 2. Purchasing of goods and services at Genrec are done in the following ways:

a. Direct Issues Direct issue procurement is the act of acquiring raw materials and goods for production which are not part of our stocked items. These purchases are generally done in exact quantities as per the requestor, acquired from a pool of suppliers at the best possible cost, quality and reliability. These purchases are made frequently and are necessary for key business practices. From monitoring and measuring direct issue purchases, the identification of goods for stock is implemented. In the event that a supplier is identified as the sole provider of the required goods and/or service, the requestor is required to complete a Sole Source motivation form justifying the engagement of the sup-plier. The form must be approved appropriately before the PO is raised. Please follow the link below to find the Sole Source Motivation form: X:\SHEQ Management System\8. General Documents\14. Procurement

b. Steel Procurement Process

Drawings for a project are received at the drawing office then to Document Control for registering.

The project steel members (marked items) are loaded onto the ERP system (Strumis) at the engineering office. The steel material breakdown is then released from Strumis to the procurement for nesting and ordering,

Procurement department is then responsible for the nesting, ordering process and making an RFQ (request for quotation) via Strumis,

A PO is the created which is an interface from Strumis to Syspro,a PO is created in Syspro, which is printed, duly approved and sent to the supplier with specific delivery instructions.

c. Stock Replenishment Items

Procuring goods for stock is initiated by a requisition either via a project/job (mainly for steel requirements) or via consumption data using set minimum and maximum quantities (mainly from Main Stores).

PROCUREMENT: How, what, where and when?

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C O S T

3. Vendor Administration

Vendor Administration is the management is the process of identifying potential suppliers that offer goods

and services to Genrec.

Selection of Suppliers: To identify suppliers that that can offer goods and services of good quality

and at a cost effective manner i.e. OEM, preferred, agents, dealers or stockists.

A vendor application form is sent to potential suppliers to determine their eligibility to become a Genrec

Vendor. Along with the completed application form, the following supporting documents also needs to be

submitted:

Registration of the company

Business profile of the business

Certified copies of ID of directors

Letter from the bank

Tax Clearance

BEEE Certificate

Letter of good Standing

ISO 9001 After validation of the supplier documentation, the approval forms needs to be signed off by:

The requesting department,

SHEQ department,

Procurement department,

Finance department, and the

Financial & Commercial Director

ALWAYS ENSURE THAT ALL SUPPLIERS USED ARE ON OUR VENDOR DATABASE Nthabiseng Diphoko is responsible for vendor related issues and credit applications, you can contact her on (011)876-2391.

4. Expediting

The expediting process refers to the procurement organisation contacting the supplier for either updates on the delivery schedule or to reassess the schedule based on issues with the supply of products or parts. Procurement is responsible for the following expediting:

Following up on all outstanding Purchase Orders to ensure timeous deliveries as per set delivery dates.

Ensure that GRV’s are processed for payment.

Any price or quantity related issues are resolved.

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C O S T

5. DO’S AND DONT’S FOR REQUESTORS:

6. Authorization and completion of requisitions:

A requisition has to be signed by both the requestor and the HOD.

A requisition more than R10,000 in value, has to be approved by the Departmental Executive

Requisitions more than R50,000 in value, have to be approved by the MD / FD.

Remember to complete your requisitions as indicated below:

DO’s DONT’s

Requisitions are fully approved prior to issuing for procurement

Communicate with suppliers without involving the de-partment

Clear descriptions on the requisitions Engaging with suppliers that not on the vendor list.

Correct quantities Distributing drawings without Procurement involvement

Cost code number on all requisitions Sending material to subcontractors without P.O.

Advise Procurement of expected delivery date. Collect goods without Procurement’s involvement.

PROCUREMENT: How, what, where and when? (cont.)

P E O P L E

The following new and updated policies and/or

procedures were communicated in July 2017:

GD-PROC-002 Procurement Sole Source Motivation Form, Rev 00

All our policies and procedures are available on the SHEQ Management System network drive. Should have any

queries, please feel free to contact Carena Kotze directly on carena.kotze@genrec.co.za or on her landline

(011)876-2543.

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Quotes of the Month (compliments of Peet van Coller)

UPDATED POLICIES / PROCEDURES: July 2017

P E O P L E

A quick introduction to the current Workshop Superintendents, all reporting directly to our Workshop Manager, Anton Gerber: Ben Smook Who? Ben Smook What? Heavy Bay Superintendant When? 01/01/2016 Where? Heavy Bay Workshop Willem Van De Reede Who? Willem Van De Reede What? Production acting superintendent When? 23/03/2017 Where? Production Léan Shaw Who? Léan Shaw What? Technical Training Manager by Genrec When? 01/03-2017 Where? Training Centre

Keep a look out for the next edition of the newsletter, introducing our Supervisors.

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WHO IS WHO IN THE ZOO: Workshop Superintendents

Ben Smook, Willem vd Rheede (acting), Lean Shaw, Morne Potgieter & Marc Buchholz

Morne Potgieter Who? Morne Potgieter What? Blast and Paint Superintendent When? 01/04/2012 Where? Blast yard and Final Bay

Marc Buchholz Who? Marc Buchholz What? Production Superintendent When? 10/01/2012 Where? Prep first then PPD then production

P E O P L E

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Congratulations to everyone having their

birthdays in September 2017

Birth Day First Name Surname Birth Day First Name Surname

01 Sep GERHARDUS VAN DEVENTER 18 Sep LUYANDA MBETHA

01 Sep MASANA MKHOMBO 18 Sep RAYMOND HATTINGH

01 Sep MICHAEL SITHOLE 19 Sep JANNIE CHRISTOPHER

01 Sep OBED SEBAPU 19 Sep LENKWANE RAMONTJA

01 Sep PHUTI MOLOTO 19 Sep MIYELANI CHABALALA

02 Sep FRANSCOIS WRIGHT 20 Sep ALARIQUE VAN RENSBURG

02 Sep TUELO LONAO 20 Sep MNCEDISI JONGA

03 Sep THANDUXOLO MADLIWA 20 Sep MZWANDILE SITHOLE

04 Sep ELMON NHLONGO 21 Sep THULANI LENGISI

06 Sep BENNETH MABENA 22 Sep BHEKISISA MBATHA

06 Sep MBONGENI MALEMBE 22 Sep CHAMUNORWA MUTATAVIKWA

08 Sep DIVAN TALJAARD 22 Sep HLANGANANI NGEMA

09 Sep ALBERT MUCHOHWE 22 Sep SINPHIWE DUBE

09 Sep PHIWAYINKOSI NDLOVU 23 Sep JACQUALINE PERRIN

09 Sep SIPHO SITHOLE 23 Sep JOHAN VILJOEN

09 Sep TSHEPO SEHLALO 23 Sep LLOYD FUNDIRA

10 Sep LEPUDI MAEPA 23 Sep MARTHINUS PRETORIUS

10 Sep LINDANI MTSHALI 23 Sep PETRUS ROODT

10 Sep SIBUSISO MDLALOSE 23 Sep ZWANNDA MAKWARELA

11 Sep BARRY POFF 24 Sep GABISANI MBATHA

11 Sep VINCENT NKWANYANA 26 Sep MZONJANI MAGUBANE

12 Sep SNOTHI MASOKA 26 Sep THANDWAYINKOSI NSIBANDE

13 Sep MPHIKELELI MADONSELA 26 Sep THEMBA NKOSI

13 Sep PAPA TSHABALALA 27 Sep PHETOLE MOHALE

14 Sep MLUNGISI MASIKANE 27 Sep PULE MATSABU

15 Sep BHUSHAN CHAVAN 27 Sep WILLEM VAN DE REEDE

16 Sep FIBIONI MIGERI 28 Sep CLARENCE ISAACS

16 Sep MASIU KHOBOSO 28 Sep PHEELLO QHAUTSE

16 Sep THEMBA HLANJWA 28 Sep PHUMLANI MAGWAZA

16 Sep YANGA MBANA 29 Sep STARVATION NDLOVU

18 Sep DENNIS NGWENYA

P E O P L E

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We would like to remind our employees to make use of our suggestion boxes for any constructive suggestions, compli-ments and/or complaints.

The idea of the suggestion boxes is to incorporate general good ideas by the people of Genrec, to assist the company going forward.

You are welcome to submit anonymous letters into the boxes, but please note that we will not give attention to any name and shame or personal matters - this should be addressed directly with our HR Department.

If your suggestion or complaint is about something that has an impact on our work or people, the matter will be investigated

cordially. The boxes will be checked on a weekly basis.