ABB Automation & Power World - May 18-20, 2010

CRS-103-1 M i t P t hiMaintenance Partnerships:Wise Alloys Case Study

© ABB Inc. June 5, 2010 | Slide 1

•About WiseWh t W P d•What We Produce•Our Mills / Processes

Wh W Ch ABB?•Why We Chose ABB?•Our Alliance, Wise / ABB

C ti I t•Continuous Improvements

• Based in Muscle Shoals, Alabama100 acres under one roof• 100 acres under one roof

• Wise Alloys is the third-leading producer in the U.S. and world of aluminum can stock for the beverage and food industries. It is an environmentally friendly • It is an environmentally friendly company that relies heavily on recycled aluminum in the production of its can stock.

• Plant founded in 1941 by Reynolds MetalsMetals

• Purchased by Wise in April, 1999

• Founded in 1941, the f ilit f t d 36 000facility featured a 36,000-ton hot mill to produce sheet aluminum.

• Aluminum produced at the plant was used for military aircraft during World War aircraft during World War II.

• According to a 1946 article i F t i W ld in Fortune magazine, World War II was won with air power and aluminum.

• Wise Alloys, Muscle Shoals, Alabama

• One of the largest single employers in the Muscle Shoals area with approximately 760 hourly and 210 pp y ysalaried employees.

• There are four primary facilities p ycomprising the Muscle Shoals operations: the Alloys Plant, Alabama Reclamation, Sheffield Plant, and LTMC – Listerhill Total Maintenance Center

• Production Employees - USWp y

Aluminum can stock for food and beverage gcontainers

Rigid ContainerRigid Container

Trailer roof

CommercialCommercial Product

2%Food3%

Beverage95%

Reclaims UBC, class scrap and other common alloy scrap into molten aluminum

Equipment: 1500 HP ShredderTwo Delacquering Kilns Six 200K lb. Reverberatory Furnaces 20 000 lb Molten Transport Crucibles20,000 lb. Molten Transport CruciblesTwo 150K Tilting Holding FurnacesOne 4-Ingot DC Casting Unit

i i % / %Scrap to Prime Ratio: 85% / 15%

Transfers molten aluminum to Alloys Casting operation or internal DC Casting operation

Capacity: 660 mm lbs per year - molten150 mm lbs per year – cast

l% to Capacity: 85% Molten Capacity80% DC Casting Capacity

Electromagnetic (EMC) Casting Technology to produce non-scalp ingot. 90% N S l R t90% Non-Scalp Rate

Equipment:Melting Furnaces Five 220K Lb. Round Top

Holding Furnaces Six 200K Lb. Tilting Five 6-Ingot Casting Pits State of the Art Metal Filtration Systems

Ingot Sizes: Thickness – 26”Widths – multiple sizes from 55”

to 69”Length – up to 240”Weights vary up to 40 000 Weights vary up to 40,000

lbs/ingot

Scrap / Prime Ratio: 75% / 25% (includes Prime Based Ingot Casting)

Capacity: 1,200 mm lbs per year ingot

% to Capacity: 83% Casting Capacity

Ingot Scalping to remove surface impurities and to produce smooth finish.

10% EMC ingot scalped before hot rolling.

% l d90% DC Casting ingot scalped before hot rolling.Scalping Capacity of 100 ingot per day.

Ingot HomogenizingTwo - 40 ingot/load Pusher FurnacesSix 10 ingot/load Soaking PitsSix - 10 ingot/load Soaking PitsTotal Combined Capacity of 200 ingot per day (5.5 million lbs.)

Ability to hot roll multiple alloys including can body & end stock, food container, building products and multiple g p pcommon alloy products.

Equipment: 170” Reversing Breakdown Mill130” Intermediate Breakdown Mill120” 4-Stands Finishing Mill Automatic Gauge Control State of the Art Automatic Sheet Inspection System

Coil Sizes: Gauges – multiple gauges from .100” up to .390”

Widths – multiple sizes up to 116” widewideDiameters – up to 90”Weights vary up to 30,000 lbs

Capacity: 1,100 mm lbs per yearp y p y

% to Capacity: 83% Capacity

The primary production mill for finish rolling D&I.

A 4 hi h 3 d ill i ll d i A 4-high, 3-stand mill, installed in 1941 as original hot mill, converted to a cold mill~ 1960.

Specifications:• Production rate: up to 3,100

FPM• Coil weight: up to 37,000 LBS.g• Coil width (cold): 32.0” to

73.5”• Output gauge: 0.007” to

0.070”

The primary production mill for finish rolling D&I can stock, as well as most tab stock and some end stockend stock.

A 4-high, 5-stand mill, installed in 1968 with major upgrades in 1983, 1996 and again in 2006.

C bl f fi i h lli d t k i Capable of finish rolling end stock in one pass (improved recovery and quality).

Every modern mill control except for continuous operation capability. World class gauge and shape controlshape control.

Specifications:• Production rate: up to 4,400 FPM

Coil weight: up to 38 000 LBS• Coil weight: up to 38,000 LBS.• Coil width (cold): 30.0” to 64.75”• Output gauge: 0.006” to 0.042”

Considered the fastest coil coating line in the world – 1200 FPM

The following takes place on the HSCCL:• Leveled• Cleaned• Treated• Coated• Thermally Cured• Waxed• Waxed• Trimmed to width

Continuous operation (non-stop except for changeovers)for changeovers)

280 plus rolls contact the metal3 accumulator towers2 payoffs, 2 entry end reels

80.00% 70

60.00%

70.00%

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20.00%

30.00%

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2009 Jan-10 Feb-10 Mar-10

PartnershipPartnershipJanuary 2007

Wi d d i i t i i tWise made decision to improve our maintenance

June – July 2007

Presentations made by five maintenance providers

August 2007g

Decision was made to go with ABB

November 2007November 2007

ABB assumes all maintenance at Wise Alloys

ABB hires all new work force – hourly – (No craftsmen from Wise)

Wise salaried supervisors – Maintenance – Join ABB

•ABB is a technical / engineering based company•Providing long term technical solutions•Providing long term technical solutions•Technical expertise and discipline from many worldwide locations•Focused importance of reliability efforts / engineering as well as effective planning and schedulingp g g•Successful conversion of “in-house” maintenance to third party / ABB•Providing lower maintenance costs •Increase productivity / decrease downtime•Favorable long term labor situation•Chance to retain a large majority of Wise maintenance employees•Provide most effective warehouse management, PdM, etc.

P d f h i•Proven success record from other companies•Most overall effective maintenance long term

Successful Transition• Interview and Hire Effectively• Organizational Structure• Warehouse Management• Provided Positive Labor Situation• Productivity / Wrench Time / Utilization Rate

I t N d dImprovements Needed• Delays (Reliability)• Effective Supervision• Training• Overall Communication with Process Owners

has improved• Engineering Support

• ABB completed 2009 with no recordable injuries ending year with a TIR of 0.ABB h k d 800 kd i h l i • ABB has worked 800+ workdays without a lost time injury.

• ABB team members have completed over 4700 Safety p yObservation Tours in last 16 months.

• ABB compiled a site specific comprehensive Full Service Site Safety Manual for Wise Alloys Site.Service Site Safety Manual for Wise Alloys Site.

• ABB improved OHS 18001 audit score 48% in 2009.• ABB implemented first phase of NFPA 70E plan

d i 2009during 2009.• ABB instituted a contractor safety process to ensure

the safety of all our contractors working on site.y g

• ABB conducted planner certification training ABB conducted planner certification training. • ABB has redefined work order priority codes in the CMMS to

improve work order prioritization and backlog management.• ABB has established a work code in CMMS for reliability work • ABB has established a work code in CMMS for reliability work

orders. This allows us to code and track reliability work orders.

• ABB plans all outages using Microsoft project• ABB plans all outages using Microsoft project.• ABB leads outage critiques after outages to capture lessons

learned. • ABB t li d l ’ ffi t ti i ff ti • ABB centralized planner’s offices to optimize effectiveness,

uniformity and efficiency of planning team.• ABB established natural team meetings with both ABB and

Wi t b f h t h ff ti f Wise team members for each area to enhance effectiveness of planning schedules.

• ABB conducts monthly 5S Kaizen events in a specific y parea of the mill.

• ABB has returned 3500 parts to storeroom during these t t l f $900Kevents at a value of over $900K.

• ABB will involve 100% of their team members in these events during 2010.g

• ABB’s 5S events have greatly impacted the effectiveness and appearance of their work and storage

i iti areas in a positive way.• ABB’s 5S efforts have improved the safety conditions

for their work and storage areasfor their work and storage areas.