ISSUE No. 89 | www.bus-ex.com
WEEKLY EDITION The seven deadly meeting sins How to combat stress at work
NoSpillTM Systems
Inspired Innovation High quality and eco-friendly results which exceeds its customers’ expectations african minerals:
lean systems program:
perth airport:
n an ow R e is dis ex an gis te c cl d te 23 r@ ou us re r 77 iq nt ive ce 1. pc . E 1 ive 00 .a m 5% 1_ e q ai BE u l 2 otin g
re g
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Driving efficiency and reducing costs
International Conference: 9 - 10 June 2014 Interactive Workshops: 8 & 11 June 2014 Amwaj Rotana, Dubai, UAE
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Event Chairman:
Amitabh Saxena CEO & Master Black Belt, Anexas Consulting, Europe
Distinguished Speaker:
Pre-conference workshop: • Lean and Six Sigma Yellow Belt workshop and certification Post-conference workshops:
Sunil Thawani CEO, Quality Indeed Consulting & Member, ASQ Global Advisory Committee and Former Jury, Dubai Quality Awards
David Boyman Board Member, Operational Excellence Society, United Kingdom, Ireland & Middle East
Benefits of Attending:
• Building a roadmap for an operational excellence journey • Lean six sigma champions
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contents 6
In brief
The week that was
In this section you’ll find news, views and comments as we take a look back at the last seven days.
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operations
How to combat stress at work
Five tips on how to deal with stress and depression in the work place.
12 strategy
The seven deadly meeting sins The seven worst examples of ‘meeting sins’ and advice on how to avoid them.
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[ Issue 89 ] BE Weekly
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Poswa Incorporated
Creating unbounded potential A progressive, wholly black-owned law firm, focused on delivering tailor made legal solutions designed to broaden its clients’ business horizons.
50 COver story
A very happy anniversary Celebrations are afoot at the University of Kentucky where 2014 marks the 20th anniversary of its revolutionary Lean Systems Program.
16 No-Spill™ Systems
Inspired innovation No-Spill™ Systems’ commitment is to provide fluid draining solutions that provide high quality and eco-friendly results, and measures its success on its ability to exceed its customers’ expectations.
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PPC Ltd
Sustainability - the key for future development Operating in some of Africa’s most important developing nations, PPC Ltd is well on its way to becoming a leading emerging-market business, and a responsible, sustainable one at that.
Lean Systems Program
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Perth Airport
Western Australia’s airgate Perth Airport is the hub for Western Australia’s domestic traffic, its channel to Asia, Europe and beyond, and definitely the entrepôt for all of its trade: it is expanding to meet these challenges and to cope with future population growth.
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African Minerals
A year to remember Head of Corporate Development and Investor Relations, Mike Jones, discusses the incredible progress made by African Minerals during 2013 and why 2014 is shaping up to be even better.
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Winners & losers
Ups and downs in the week that was... Lenovo’s The world’s largest PC maker’s full year net profits increase by 29 percent
Netflix Announces plans to expand into six more European countries by the end of the year
Sony Signs partnership in China to manufacture and sell PlayStation 4
Barclay’s Bank The UK bank have been fined £26 million for gold price fixing
Hewlett-Packard Are to cut up to 16,000 jobs across its business in the coming years
McDonald’s Forced to close headquarters amid staff protests over minimum wage
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Burberry The UK luxury fashion brand posts record annual profits and revenues
Russia & China Have signed a multi-billion dollar gas supply contract
Tiffany Jewellery firm Tiffany reports 50 percent jump in profits thanks to strong US sales
BP Loses its latest appeal bid over Deepwater Horizon compensation claims
SNCF The French train operator spends €15 billion on trains that are too wide for the network’s platforms
Credit Suisse Pleaded guilty and are to pay US Government $2.6 billion fine for aiding tax cheats
in brief
Egypt hopes el-Sisi will reignite economy Ex-army chief Abdel Fattah el-Sisi is expected to win the election easily and his first task will be to rebuild infrastructure and business confidence. Egypt’s two day election started at 0600 GMT on May 26 following more than three years of political upheaval that has seen the overthrow of two presidents overthrown, civil unrest in which thousand have lost their lives, a spate of terrorist attacks and, as a result, an economy in tatters. Sisi has positioned himself as a strong leader who can restore stability to Egypt and turn the economy around. He is expected to win effortlessly over his only opponent, Hamdeen Sabbahi, who is fighting on an anticorruption platform. The armed forces and police are guarding polling stations across the country, which has seen a surge in deadly attacks after Mohamed Morsi’s overthrow last July. Sisi on the other hand has vowed to eradicate the Muslim Brotherhood and put an end to terrorism. High on the agenda will be energy subsidies. Sisi has hinted that he favours cutting subsidies, a move seen as essential if fiscal stability is to be restored, however cuts would be an unpopular move, potentially sparking off further public unrest which is the last thing he needs. Nevertheless business leaders have reportedly made it known they regard the subsidies on fuel and electricity as something that will have to be pruned back if public finances are not to collapse. On the one hand maintaining the subsidies
economics
could scupper the economy; on the other reducing them is sure to enrage the millions of Egyptians living in poverty three years after the revolution was supposed to bring in a new and fairer society. Keeping energy prices low could sink the economy. Both Sadat and Mubarak were both forced to maintain subsidies on basic commodities in order to maintain peace on the streets. The industrial and business community in Egypt believes that more damage is done to the economy by subsidies than justified by the advantages of cheap energy: reliability of supply is more important. What is really required is investment in energy infrastructure. Subsidies have boosted demand beyond the country’s capacity to supply it and meeting that demand has affected Egypt’s ability to export energy for much needed foreign currency. The government is also in debt to energy majors to the tune of nearly $6 billion, much of it to British firms BG and BP. For Egypt to rein in its energy use, prices would have to rise, however, and foreign investors will hesitate to support power generation infrastructure until prices are high enough to give them a realistic return.
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business
Sparkling results boost Tiffany’s outlook for 2014 The increase in profits to $126 million compares with a figure of $83.6 million a year earlier, with global net sales growing by 13 percent
to reach $1 billion in that time frame. This beat the expectations of most analysts who predicted sales of $953.7 million in the first quarter of the year. Tiffany chief executive Michael Kowalski said: “This is an excellent and encouraging start to the year.” Sales in the Americas, Tiffany’s biggest market, rose eight percent to $439 million, as its increasing focus on lower-priced jewellery a t t r a c te d c u s to m e r s . Meanwhile, regionally, sales were 17 percent higher in Asia Pacific, 20 percent higher
in Japan and nine percent higher in Europe. Kowalski went on to state that strength in fine and statement jewellery sales continued, while sales of Tiffany’s new or expanded jewellery collections accelerated, led by its Atlas collection. The Atlas Collection is a new range that focuses on silver jewellery, including lariats, rings and pendants, priced below $500. Tiffany, which is known for its turquoise gift boxes, also boosted its earnings outlook for 2014.
economics
Presidents Putin and Xi sign historic Russia-China gas deal The 30-year agreement between Russia’s Gazprom and China National Petroleum Corp (CNPC) was formally signed by Russia’s President Vladimir Putin during a summit in Shanghai between the leaders of the two nations. Russia has been keen to find an alternative energy market for its gas as it faces the possibility of European sanctions over the crisis in Ukraine and while no officially price has been given for the Russia-China deal, it is estimated to be worth over $400 billion. President Putin said in a statement to the Russian news channel Rossiya: “The price is satisfactory for both sides. It is tied, like it is envisaged in all our international contracts with Western partners, specifically our
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partners in Western Europe, to the market price on oil and oil products. It is an absolutely calibrated, general formula for pricing.” The agreement is expected to deliver some 38 billion cubic metres of natural gas a year eastward to China’s burgeoning economy, starting around 2018. Alexei Miller, Chief Executive of Gazprom said the new deal was “the biggest contract in the entire history of the USSR and Gazprom - over one trillion cubic metres of gas will be supplied during a whole contractual period.” China is Russia’s largest single trading partner, with bilateral trade flows of $90 billion in 2013. The two neighbours aim to double the volume to $200 billion in the next ten years.
in brief
Best from the web this week
We’ve done the searching, so you don’t have to! BBC
Mobile offers brighter future for Africa’s rural homes
Tom Espiner John Kibet’s home in rural Kenya is not linked to the country’s electricity grid. The only way he could generate power was by using a kerosene-powered generator. This was dirty, smelly and dangerous. Mr Kibet, a farmer with 15 acres of commercial land on the outskirts of Kitale, has switched to solar-generated electricity which he pays for using his mobile phone. Read the rest
businessweek
ted talks
How data will transform business Can a Chocolate Mogul Save Ukraine? Katherine Jacobsen Read the rest
Philip Evans What does the future of business look like? In an informative talk, Philip Evans gives a quick primer on two long-standing theories in strategy — and explains why he thinks they are essentially invalid. Watch it now
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How to combat stress at work Five tips on how to deal with stress and depression in the work place Words by
Marielena Sabatier
operations
A
recent survey of 1,200 conducted by Depression Alliance found that a third of people in the UK struggle to cope at work because of depression, stress or burn out, with 83 percent of those affected experiencing isolation or loneliness as a result. It is not necessarily a big workload that causes depression at work but an unfair boss and an unfair work environment are what can really have an effect on employees and really bring them down. Below are a few tips on how to combat stress and depression at work: 1) Accept stress Denial of stress will only worsen the symptoms. People need to be honest with themselves that they are in a situation that needs to change.
2) Find the root cause of stress This is not necessarily as easy as it sounds but good coaching can usually get to the heart of the matter fairly quickly. People need to spend time contemplating their feelings understand the sources of stress and talking to a friend or business coach can help provide clarity and focus. 3) Identify what needs to happen to change the cause of the stress important not to place too much emphasis on reducing the symptoms without a c k n owl e d g i n g th e underlying causes . Changing the cause might include looking for a more suitable job. Other examples of changing the cause might include arranging for some work to be delegated
to others. It could also include improving organisational skills so that things donâ&#x20AC;&#x2122;t get so out of control in the future. 4) Focus on the solution not the problem Instead of dwelling on the problem, people need to ask themselves how they would ideally be feeling or what their ideal desired outcome is. Too often people get
â&#x20AC;&#x153;people get stuck thinking about a problem without considering an alternative or focusing on the end result they want to achieveâ&#x20AC;?
stuck thinking about a problem without considering an alternative or focusing on the end result they want to achieve. 5) Socialise When stressed or depressed, people tend to overlook their hobbies, friends and interests but spending time with family and friends can be the best tonic. Exercise also helps combat stress and depression by releasing endorphins that create a natural high and it can help replace feelings of tension with optimism and calm.
About the author
Marielena Sabatier Executive Coach and CEO of Inspiring Potential works with businesses and executives to develop and boost their confidence to improve their performance at work. www.inspiring-potential.com
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The seven deadly meeting sins The seven worst examples of â&#x20AC;&#x2DC;meeting sinsâ&#x20AC;&#x2122; and advice on how to avoid them Words by
Chris Meredith
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M
eetings may be an essential part of the business world, however there are those among us who have no idea how to behave in these situations. We’ve all been in meetings where someone has made us see red either by texting on their phone, not contributing or even not shutting up. 1) Time-wasting Time is an extremely valuable commodity, so meetings that go on much longer than they need to are not only costing you money, but also disrespecting everyone’s time. The main causes of this sin are ‘a’ having no agenda, and ‘b’ organising an unnecessary meeting. The solution however is a very simple one. Set yourself a time limit for each meeting and say at the beginning ‘this meeting will finish at x’. Always have an agenda and put time limits by each item. And finally, if you don’t need to have a meeting and you’re doing it just for the sake of talking, don’t organise one. 2) Texting/Checking emails This sin is very simple. If you are looking at your phone you are not concentrating on the meeting in hand. Often the most productive meetings are when you are away from your desk and completely disconnected from your dayto-day workload.
“if you don’t need to have a meeting and you’re doing it just for the sake of talking, don’t organise one”
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Simple rule, all telephones should be banned from meetings. 3) Motor mouths Everyone can probably name someone in their office who likes the sound of their own voice. If you can’t then it’s most likely you. However, when these people get into a meeting situation, they can not only alienate everyone else but also stifle the productivity of the meeting. Sometimes whoever is chairing the meeting has to be blunt and cut in to shut this person up. A less confrontational manner however would be to give
strategy
everyone fair warning at the start that if they go on, they will be shut up. 4) Doom and Gloom Just like the Dementors in Harry Potter, there are those people who can suck the joy and happiness out of every situation. They will try to find fault with anything that is suggested and often their negative energy will dry up even the most bountiful well of ideas. A good way to go about this would be by creating a series of meeting rules which include banning phrases like ‘just being devil’s advocate’ and instead treating every idea as a good idea. 5) Poor chairing/ over talking A bad chair will result in a bad meeting, fact. They are the facilitator for discussion and the arbiter of ideas so if they cannot command the meeting effectively then it will be doomed to fail. Chairing however, isn’t for everyone and that is absolutely fine. If you know you have to facilitate a meeting and you’re not 100% comfortable doing it find someone else who is. Th e re ’s no sh a m e in acknowledging a weakness and delegating the task to someone who is more capable. 6) Late arrivals Just as overrunning meetings disrespect other people’s time, so do latecomers. You could just about get away with arguing that meetings that take too long do have an element of productivity. However, waiting for people to turn up is just dead time. Many companies have now adopted a zero tolerance approach to lateness
“A meeting that is just a talking shop and has set no clear defined actions has failed”
with some even fining people for being late to a meeting. Whilst that maybe an extreme example it is important to set an example that lateness won’t be tolerated. 7) No actions ‘What is the point of this meeting?’ should be on the minds of everyone before you go in that door. A meeting that is just a talking shop and has set no clear defined actions has failed. At the end of every meeting you should spend five minutes evaluating what was discussed. Outline what you wanted to achieve and list through the actions that have been delegated. Therefore the minutes of the meeting need not necessarily reflect who said what but who is going to do what and by when.
About the author Founded in 2001 by Jim Venables & Andy Haywood, the officebroker.com story began after the one time recruitment specialists switched from filling job vacancies to empty offices. Drawing upon their experience of working closely with clients and satisfying requirements, officebroker.com soon began to offer a unique service to businesses seeking office space. www.officebroker.com
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Inspired innovation No-SpillTM Systems No-Spill™ Systems’ commitment is to provide fluid draining solutions that provide high quality and eco-friendly results, and measures its success on its ability to exceed its customers’ expectations words by
Will Daynes
research by
Stuart Platt
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t was a German by the name of Helmut Muller who will always be credited with development of the first environmentally friendly drain plug, patenting the first version of the “pop-up” style, spring-loaded drain plug in 1977. It was then in the mid-1980s that a Dutchman by the name of Poul van Santen would go on to invent an improved version of the aforementioned product. Only a few years after this Lorne and Donna Hasinoff, present day owners of No-Spill™ Systems, were first introduced to the drain plug product. So impressed were they by the product that they subsequently committed their efforts and energy to opening up the North American market for drain plugs, selling them under the name Ettco. Changing its name to Femco Environmental in 1996, the company would go on to champion the development of the Compact and Speed Click™ version of the Dutch drain plug. It was in the year 2000 that the company No-Spill™ Systems was incorporated in the United States. In the years since, No-Spill™ Systems has worked extensively with its customers and utilising its own vast product knowledge is today making its own No-Spill™ branded drain plugs and has improved on every tangible aspect of the product “This No-Spill™ drain plug is now produced using US and Canadian sourced labour and materials and is raising the bar for drain plug quality once again,” enthuses Carrie Hasinoff, Director of Marketing. “This No-Spill™ product is customised for the North American market based on suggestions and years of input from our valued end user customers and dealer network, now over 4,000 strong.” As Hasinoff goes on to state, the need for environmentally sustainable fluid transferring technology is growing stronger by the day. “No-Spill™ Systems is moving
I
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American made drain plugs ready for shipment
No-SpillTM Systems
forward with this trend by promoting our No-Spill™ System in many markets in multiple continents. Our latest emerging markets are in South America, and Central America. We continue to adjust and tweak our product to provide specialised solutions for our customers wherever they may be. We’ve completely re-invented the same drain plug with better materials, improved thread pitch accuracy, and a truly American product.” No-Spill™ Systems is committed to providing fluid draining solutions that provide high quality and eco-friendly results, with excellent value for its esteemed customers. “Our success is measured by our belief in No-Spill™ Systems’ ability to meet or exceed expectations of value, quality, and service,” explains Sales Manager, Richard Warren. “We truly believe that our product is the best around and that our customers are getting a better, cleaner and safer way to do fluid changing.” No-Spill™ Systems emphasises that its product is not simply a “fitting”, rather it is a living commodity that changes year to year with every change and movement in the market. In the past two years alone the company has gone about the process of modifying all of its NPT plugs in order to reflect what it calls, “a true North American thread pitch”. With a combined experience of more than 88 years in the industry, No-Spill™ Systems is the longest running drain plug company in the world, and from day one its customers have been recognised as being the core reason behind the success of the business. “Our customers are the first to suggest improvements and we are always backing them up and looking for ways to implement their needs into our product,” Hasinoff explains. “For example, there was an increased demand for the body of our Speed Click™ Clicker to be manufactured entirely in brass. We responded and in addition to improving the brass body of the product,
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No-Spillâ&#x201E;˘ production adheres to the highest quality standards
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No-SpillTM Systems
“We truly believe that our product is the best around and that our customers are getting a better, cleaner and safer way to do fluid changing”
have improved the way in which it connects to its mating piece. We have also responded to a resounding customer request for quicker flow of fluids through the product. We collected data from our customers, worked tirelessly with engineers and in the end now have the only Speed Click™ Clicker with a three-quarter inch diameter flow in the industry.” The company has also benefited hugely from the development of a business model that stands strong in the face of economic difficulty. “In the economic fall of 2008, we took a risky counter intuitive business approach and doubled our sales team, to reflect the addition effort that would be required to support growing sales volumes in a depressed market,” Hasinoff reveals. “We also created a Drain Plug Specialist position, whose primary responsibility is researching and matching up new drain plugs with their No-Spill™ match. This was another example of the amount of time, resources, and talent we have invested over the years into bringing the No-Spill™ drain plug into fruition and it’s been well worth it. Our customers appreciate the lower price and they appreciate that we are keeping jobs in our home countries where they matter most to us.” “Every time we talk to our customers the message is always the same and that is that they love our products,” Warren says. “Some of these have been with us over 20 years and they just love our products because they save so much time, money and effort. Our products ensure a quick and easy way
of carrying out fluid changes, meaning that a vital piece of our customer’s equipment that is brought in for a fluid change or preventative maintenance is in our premises for the least amount of time and sent back out into the field as quickly as possible.” For the rest of 2014, the company’s plans are to continue pushing for greater sales in the South American mining and oil and gas industries where it continues to see huge demand for onsite maintenance and its products. Further ahead, into 2015, it foresees future growth in all of its core markets as the global economy shifts upwards. In line with this projected growth, No-Spill™ Systems has devised a strategy to further infiltrate the US market in particular with special attention to addressing the needs its competitors simply cannot complete with. “We recognise that our customers can spend their maintenance budget in many ways and we are thankful every time they choose us,” Hasinoff concludes. “In order to continue to meet their evolving needs we will strive to continuously innovate our product. Recently we came out with a 3/4 inch drain tool and it is product innovations like that that we are looking every single day to do, to innovate and meet new challenges.”
No-SpillTM Systems
1-866-466-7745 info@nospillsystems.com www.nospillsystems.com
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PPC
Sustainabilit for future d
Operating in some of Africaâ&#x20AC;&#x2122;s most important d becoming a leading emerging-market busines words by
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Tshilidzi Dlamin
C Ltd
bility - the key development
developing nations, PPC Ltd is well on its way to ss, and a responsible, sustainable one at that
ni
edited by
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ncreased concern and focus on global warming has no doubt made it necessary for countries, industries and businesses to look for growth and development opportunities in a more sustainable manner. One particular example would be the global cement industry which has historically suffered from having a high carbon footprint due to the energy requirements and chemical process involved in cement manufacturing technology. PPC Ltd, a pioneer in the southern African cement industry, remains committed to the integration of environmental and sustainability issues into its business strategy. The cement supplier recognises that the impacts of climate change, management of water resources and energy security are among the greatest challenges facing society today. “PPC cannot ignore the need for sustainable development as we believe we have a responsibility towards future generations. We aim to minimise the impact of our environmental footprint and create more positive outcomes in the long term,” explains Tshilidzi Dlamini, Group Sustainability and Environmental Manager for PPC. “The strategic steps we have taken in reducing our environmental footprint, as an integral part of our sustainable development measures, will allow PPC to achieve its long term goals and targets.” Sustainability has been a big part of PPC’s
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“PPC cannot ignore the need for sustainable development as we believe we have a responsibility towards future generations”
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PPC Ltd
“When it comes to water, while we are not a major consumer, we can’t ignore its importance, given the scarcity of water in this country” agenda for many years, and all of their cement plants were ISO 14001 certified in 2001. The company also has a stringent environmental policy, which received a stamp of approval by the then CEO, in 1997, and is reviewed on an annual basis. In October 2011 PPC set out to improve electrical efficiency by ten percent, thermal efficiency by five percent and ultimately reducing its specific carbon footprint by five percent by 2017. Coupled with this, PPC aims to source ten percent of its electrical energy from renewable and/or alternative energy sources. PPC has also carried out significant work on its procurement policies, which now encourage the use of sustainable material and resources. The business is engaging its top six suppliers by spend to assess their sustainability in 2014 and the business aims to expand this further to other suppliers. “When it comes to water, while we are not a major consumer, we can’t ignore its importance, given the scarcity of water in this country,” Dlamini continues. “As such we are working on improving water monitoring systems to understand the areas of potential saving while also continuing to make huge savings through various upgrades.” PPC is of the opinion that changing legislation is one of the biggest stumbling blocks for corporates to increase its drive for sustainable development. “The regulatory
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Tshilidzi Dlamini, Group Sustainability and Environmental Manager
process is prohibitive due to the increasing number of licences that one needs to hold to operate business and the processes associated with acquiring this licences. This almost hinders a company’s ability to innovate as its focus turns to licensing,” Dlamini states. The relationship between environmental requirements and production demands has also, at times, made it challenging to address environmental requirements such as upgrading plants to meet certain standards. Over the last couple of years, PPC has received the ISO 14001 certification for all of its cement operations in South Africa. “These systems assisted the business in being able to manage its legal requirements, while also being able to identify key aspects and impacts associated with our operation,” Dlamini says. “As this requires the commitment from PPC’s top management, it created awareness and also availability of resources to address environmental impacts.” Another major achievement for PPC comes in the form of a four star rating for its new headquarters by The Green Building Council of South Africa (GBCSA), an independent, nonprofit company formed in 2007 to lead the greening of South Africa’s built environment. Located in the middle of the hustle and bustle of the Northern Johannesburg business centre, Eastgate 20 on Katherine Street in Sandton, South Africa now houses one of the largest cement suppliers in southern Africa. The new building is strategically designed to efficiently reduce energy and water. The Green Star
“The regulatory process is prohibitive due to the increasing number of licences that one needs... this almost hinders a company’s ability to innovate as its focus turns to licensing”
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PPC Ltd
rating system from the GBCSA controlled so that only as much Did you know? cooling is provided as needed, was designed to provide the and the motors do not just stop commercial property industry and start.” with an objective measurement 2001 Eastgate 20 is also expected for green buildings and to create The year that all to make a significant reduction and reward environmental of PPC’s cement in the usage of potable water leadership in the property plants became ISO through the installation of industry. A four-star rating 14001 certified water efficient fittings for taps, recognises a building for its urinals and toilets. Furthermore, “Best Practices”. 40% Eastgate 20 has also increased To consume less energy, The amount of the quality of the water in the Eastgate 20 has been designed revenue PPC hopes adjacent environments. PPC to utilise efficient lighting which to generate from has a storm water treatment is only activated when an area outside of southern site, adjacent to Eastgate 20, is occupied. Further to this, the Africa by 2017 where it treats all the water design has enabled the building from its premises and that of the to take advantage of natural neighbouring sites to ensure that light, reducing the building’s it is clean before it flows into the river. electricity demands during office hours. “Normally during a storm event, rainwater “We have also made considerable progress runs off hard surfaces into storm water drains through our new air conditioning system,” and is directed into the nearest river to avert Dlamini states. “It uses inverter technology for flooding,” Dlamini highlights. “In built up the compressors, meaning that the speed is
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areas, the abnormally amplified increase in water flow during storm events disrupts the natural balance of the ecosystem and the river’s ability to function as part of a healthy ecosystem.” PPC has further boosted its green credentials by investing in the wind energy sector. Construction of the Grassridge Wind Energy Facility in Nelson Mandela Bay officially began with project representatives from the Department of Energy (DoE), InnoWind (Pty) Ltd, PPC Ltd and community representatives from Motherwell turning the first soil of the R 1.2 billion wind farm.
The Grassridge wind farm forms part of the DoE’s Renewable Energy Independent Power Producer Procurement Programme and is being established at PPC’s Grassridge Quarry. It is one of the first renewable energy projects to be developed within an operating quarry in South Africa. InnoWind, a local wind energy developer owned by EDF Energies Nouvelles has developed the project. The wind farm is owned by Grassridge Wind Power, a project company which comprises InnoWind, the Industrial Development Corporation and the Grassridge Winds of Change Community Trust. This
“PPC is committed to becoming a more sustainable company. This project is the first step in procuring power from renewable sources”
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PPC Ltd
facility will consist of 20 Vestas V-112 3MW wind turbines, with an installed capacity of 61.5 MW, delivering electricity equivalent to the annual consumption of approximately 40,000 households. The development is the first phase of possible future wind farm expansions in its vicinity. “We have come a long way in bringing this project to fruition, and are all very excited to reach this milestone that is the start the construction of InnoWind’s first wind farm in South Africa,” said Kevin Minkoff, Project Manager at InnoWind. According to Egmont Ottermann, Group Energy Manager at PPC Ltd, the wind farm forms part of the cement company’s longterm rehabilitation plans for the mine. “PPC is committed to becoming a more sustainable company. This project is the first step in procuring power from renewable sources.” Indeed, PPC and InnoWind are today in
the midst of discussions for a second phase, 24 MW wind farm under a bilateral power purchase agreement. When commissioned, this farm will supply ten percent of PPC’s electrical energy requirements in South Africa. In a report by the European Cement Association, a safe environment is essential for protecting people from changing weather conditions, such as long periods of drought and a significant level of rainfall. “Concrete can be used to provide comprehensive fire and flood protection including protection of people, animals, goods, property and the environment. It also plays a key role in guaranteeing a safe, secure supply of drinking water and power,” the report said. The report indicates that the high thermal mass of concrete enhanced thermal comfort by minimising or avoiding overheating during heat waves especially when combined with natural ventilation and appropriate building
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“Buildings are getting smarter by utilising wind and minimising water usage. Buildings are also much more adaptable to harsh weather conditions or events” architecture. This also reduces the need for air conditioning, thereby reducing carbon dioxide emissions from energy consumption. “Cement is incredibly important in addressing the issues posed by climate change,” Dlamini enthuses. “Buildings are getting smarter by utilising wind and
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minimising water usage. Buildings are also much more adaptable to harsh weather conditions or events. We encourage all of our clients to keep that in mind in the design process of their new structures and urge them all to apply sustainable measures during the construction process.”
PPC Ltd
Apart from their operations in their historic territories in southern Africa, the cement supplier has undertaken an African expansion strategy which aims to see PPC generate 40 percent of its revenue from outside of southern Africa by 2017. To achieve this, PPC has been increasing its footprint in Africa. It increased its stake to 30 percent in Ethiopian company Habesha Cement with construction of a 1.4mtpa plant due to start this year. It also acquired a 51 percent stake in CIMERWA of Rwanda, with construction of a 600,000tpa plant currently under way. Meanwhile, the construction of its 1.0mtpa plant in Democratic Republic of Congo is expected to start this year and PPC is also
currently concluding a feasibility study for the construction of a 700,000tpa milling plant to service northern Zimbabwe and Mozambique. PPC is determined to align its sustainability strategies to all of its new operations on the African continent and in committed to making sure that all its operations adhere to international best practices.
PPC Ltd
+27 (0)11 386 9000 contactus@ppc.co.za www.ppc.co.za
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African M
A year to r
Head of Corporate Development and Investor progress made by African Minerals during 2013 words by
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Will Daynes
Minerals
remember
Relations, Mike Jones, discusses the incredible 3 and why 2014 is shaping up to be even better research by
Jeff Abbott BE Weekly [ Issue 89 ]
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Laying the tracks for the new locomotives
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African Minerals
o say that 2013 was a good year for African Minerals is, in truth, something of a major understatement. While the company itself may be more modest about such things the reality is that this is the company that last year was responsible for completing Africa’s fastest major mine development. The mine in question is the Tonkolili iron ore mine in Sierra Leone, and the work of the company in 2013 saw this world class asset commence with the ramp up to 20Mtpa across its fully integrated, exclusive use 200 kilometre mine, rail, port and marine infrastructure network. Active in Sierra Leone since 1996, African Minerals shifted from its initial search for alluvial diamonds to iron ore following the discovery of the Tonkolili deposit. Tonkolili
T
towards African Minerals establishing itself as the largest contributor towards Sierra Leone’s GDP. “Sierra Leone has been heralded as being the country with the second fastest growing economy in the world in 2013, and as the biggest contributor towards GDP we have become an important feature in the country’s emergent industrial landscape,” Jones continues. “Likewise, with its stable environment, clear mining legislation, our strong relationship with the government and with our resource set where it is, the country is equally important to us. That creates a mutual respect and a joint purpose, driving a healthy symbiotic relationship between both parties.” As 2013’s results show, the business model that African Minerals has established for itself, one that encapsulates the ethos of
“Sierra Leone has been heralded as being the country with the second fastest growing economy in the world in 2013” today has a JORC compliant ore resource of 12.8 billion tonnes, which extends over a combined strike length of 30 kilometres, and includes a substantial Direct Shipping Ore and Saprolite mineral resource overlying one of the world’s largest magnetite ore bodies. “The last 12-18 months has very much been characterised by the completion of construction of Phase I at Tonkolili and its subsequent de-risking,” states Mike Jones, Head of Corporate Development and Investor Relations. “We have also spent the last year making the operating parameters of the project more consistent in order to maintain the desired 20 Mtpa run rate.” In total, 2013 saw the company produce approximately 13.1 Mt of saleable iron ore and export 12.1 Mt. These figures contributed
“don’t put off until tomorrow what you can do today” has proven hugely successful. “In order to get a perspective on how we put this model into practice you need only to look at the rapid development of the Tonkolili deposit throughout our time operating here,” Jones explains. “Initially we set up under the pretence of this being an eight million tonne per year partial road haulage operation. Over a relatively short space of time, during which we were developing the asset and securing mining and infrastructure licences, the whole approach evolved to make it a ten million tonnes on rail operation, then twelve, 15 and ultimately 20 million tonnes per year.” As Jones goes on to highlight, such a large change in scope during the early stages of construction would have likely proven to be
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African Minerals
New locomotives arriving in Sierra Leone
“We have also spent the last year making the operating parameters of the project more consistent in order to maintain the desired 20 Mtpa run rate” impossible had the company gone the natural route of getting a formal reserve developed, dipping into feasibility studies, securing external project financing and so forth. “By applying a large degree of flexibility when it comes to our financial arrangements and capital decision making, we have been able to significantly enhance and accelerate the completion of the expanded phase I project during its construction.” Impressive as they are, African Minerals’ efforts have not solely been designed to
benefit the company and its stakeholders alone. Rather it has always been its desire to ensure that everybody is a net winner from its activities, striving to create a better quality of life for the communities in and around where it operates, one that is sustainable long after the mine has ceased operating. “One of the first benefits people tend to link to a successful operation like ours is direct employment, however it goes much further than that,” Jones says. “One can only employ a certain amount of people
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Beltship Management Limited
The Self-unloading & Transhipment Specialists BML is a joint venture Company between Globe Shipmanagement Ltd and Gypsum Transportation Limited (GTL) and has been involved in the self-unloading and transhipment market for over twenty years. However with our partners we have roots stretching back to the late 1800’s with the first Gypsum Queen loading Gypsum in Canada in the 1890’s. In 1947 GTL were the first Company to build ocean going self-discharging bulk carriers and as such as a group there is a vast knowledge of the industry, the self-unloading concept and the cargoes carried. Beltship in Sierra Leone BML was contacted by African Minerals Limited (AML) in 2010. In 2010 the project was in its infancy and AML required a transshipment solution to move 8 million tons per annum (MTPA) of iron ore from the Port of Pepel, inland from Freetown, to an offshore transshipment location where the iron ore was to be loaded onto Capesize ocean going vessels (OGV). The loading port has a draft restriction of 9.5 meters, the channel is narrow with tight bends, and currents in the channel can run in excess of 4 knots. This challenging environment duplicated, almost completely, the operating
challenges that our vessels were designed to overcome at the loading ports in Nova Scotia, Canada. Additionally the advanced maneuverability of the vessels meant that they were ideal for the challenges of ship to ship operations, and with the flexibility provided by the vessels telescopic boom, efficient loading of an OGV with a minimum of transhipment vessel movements would be possible. AML export cargo consists of three grades of DSO, lumps, fines and AL32. The AL32 is a product which contains a certain amount of clay which can make handling difficult, however the vessels hopper shaped holds with their high slope angle combined with the MHF discharge system (negating hog backs) and oversized conveyors and transfer points was designed to handle “sticky” cargos. These technical advantages, inherent in the design of the vessels, together with an early start date and attractive freight rates, secured the Contract for BML in the face of stiff opposition from other specialist transhipment Companies and BML kicked off operations in October 2011. Since startup the transhipment operation has been very successful and, after a short ramp up period, the vessels have consistently over performed relative to the requirements of the
“Since startup the transhipment operation has been very successful and, after a short ramp up period, the vessels have consistently over performed relative to the requirements of the contract”
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contract. This success resulted in a contract amendment to increase the transhipment exports to 20 MTPA for which BML brought into the project a third vessel and embarked on a major upgrade of the two existing vessels to increase design discharge capacity. This upgrade involved back fitting frequency convertor drives to all conveyors together with larger motors allowing faster belts speeds, increased discharge rates but allowing a decrease in per m2 loading of the belts. This has afforded better performance whilst reducing the mechanical stresses on the system. An average rate of 2800 tons per hour is required to meet the 20MTPA contract requirements whilst the actual average is now nudging 3400 tons per hour. BML is now operating 4 vessels in Sierra Leone, has a local office staffed with 55 employees of which 50 are Sierra Leones. BML has a commitment to Sierra Leone and has undertaken a cadetship scheme to provide
education and employment opportunities for the youth of the Country. Promising young men and women are sponsored and supported by BML to attend the Regional Maritime University in Ghana and regularly join the BML fleet for practical training and experience. Currently BML is loading 10 OGVâ&#x20AC;&#x2122;s a month which is an approximate 1.74 million tons per month of iron ore thereby helping AML to reach its targets. To date BML have loaded 123 Cape Size vessels and completed 615 ship-to-ship operations since start up thereby making BML one of the worldâ&#x20AC;&#x2122;s largest transhippers by volume as well as one of the most experienced ship to ship operators worldwide.
+377 97 97 80 90 info@beltship.com www.beltship.com
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Wet Processing Plant during night shift
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African Minerals
“By the second half of this year we expect to commence with the building of our first Saprolite haematite concentrators, which will go into production by 2016”
obviously, so we look closely at how our presence in the region can positively impact upon people up and down our footprint. In terms of indirect employment, increased activity in the area creates opportunities for the service sector and we also try to assist where we can in the drive in demand for goods and speciality services, including livestock, food and vegetables, carpentry, brick making and clothiers.” The development of people within the community in order to give them a better chance in life is a driving force behind a number of African Minerals’ CSR efforts, one of which is the refurbishment and financing of the Magbaruka Technical College. “One of the first things we noticed when we began operating in Sierra Leone was the fact that, as a result of the devastating Civil War that latest from 1992 to 2002, there was a significant dearth of men and women in the 20-30 year old age group, the group that would typically include your semiskilled artisans and tradespeople,” Jones highlights. “Our response to this is to utilise the college in order to provide national, vocational training in various semi-skilled and skilled trades. In completing this training these men and women will become certified both nationally and regionally, and while of course we would love it if they all one day worked for us, the most important thing is that they leave the college as a mobile asset capable of earning a living either within Sierra Leona or the wider region.” At the time of writing figures released by the company shows the first quarter of
2014 coming along encouragingly, with the fully integrated mine, plant, rail, port and marine operation contributing towards the production of 5.3 Mt of saleable product and the export of 4.6 Mt in the quarter, making the company the largest iron ore exporter in West Africa. “Moving forward there are two key elements that we are focusing on,” Jones concludes. “Operationally we want to stabilise our production rate at 20 Mtpa. Doing so will subsequently bring down our cash costs and thus increase our profit margins. From there we can turn our attention to locking the longer term future of the asset in place. The existing Direct Shipping Ore resource, which represents just one percent of our ore body, is likely to become depleted around the end of this decade, and we will need to have already moved into the higher margin Saprolite phase of the ore body, which represents nine percent of our ore body. By the second half of this year we expect to commence with the building of our first Saprolite haematite concentrators, which will go into production by 2016. This will lock in place the next phase of life for the Tonkolili mine, a multi-generational asset that we believe will be here for many years and decades to come.”
African Minerals
020 3435 7600 info@african-minerals.com www.african-minerals.com
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Poswa Inc
Creating unbou
A progressive, wholly black-owned law firm, Posw tailor made legal solutions designed to words by
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Will Daynes
corporated
unded potential
wa Incorporated (Poswa Inc.) focuses on delivering o broaden its clientsâ&#x20AC;&#x2122; business horizons research by
Stuart Platt BE Weekly [ Issue 89 ]
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Poswa Incorporated
oswa Incorporated (Poswa Inc.) prides itself in its ability to see beyond the obvious. A wholly blackowned firm committed to breaking new ground in commercial law, it successfully balances close attention to detail with a wider worldview in order to give its clients the full benefit of what it calls “unbounded potential”. The proven track record of the firm spans over 90 years of combined legal experience in the corporate, private and financial sectors. Established in 2010, Poswa Inc. is a progressive law firm, which specialises in providing services across all aspects of commercial law, including the structuring of transactions, negotiation and drafting of agreements, legal opinions and legal due
P
The Chief Executive Officer of the firm, and its Director of Banking and Finance, is Mr Luyolo Poswa. Having served his Articles of Clerkship with Deneys Reitz Attorneys from 1998 to 1999, Luyolo was duly admitted as an Attorney in March 1999. During his term at Deneys Reitz, Luyolo was primarily focused on Maritime Law. Luyolo subsequently spent a year in the United Kingdom between 2000 and 2001 pursuing a Master of Laws Degree (LLM) (International Business Law) at the University of London. In 2002, Luyolo joined Absa Corporate and Merchant Bank (Absa Capital) where he worked in the Debt Capital markets division specialising on securitization, Domestic Medium Term Notes and Corporate Bonds, loans and asset backed commercial paper
“Poswa Inc. is a progressive law firm, which specialises in providing services across all aspects of commercial law” diligences. Through specialist insight and personalised service, Poswa Inc. focuses on tailor made legal solutions that broaden business horizons. The firm also offers conveyancing and notarial expertise as well as general legal advice and litigation through commercial, civil and labour spheres. Boasting level 1 Contributor BBBEE Accreditation, Poswa Inc.’s mission is to be recognised as one of, if not the leading commercial law firm in Africa. In order to achieve this aim, the firm looks to leverage what it calls “legal solutions that go beyond the ordinary”. Its range of services cover a wide variety of areas including banking and finance, corporate and commercial, conveyancing and notarial, local government, litigation, labour, infrastructure development, maritime law and aviation.
conduits. He was also responsible for managing a ZAR 15 billion commercial paper conduit vehicle. In April 2007, Luyolo joined Investec Capital Markets as an in-house Legal Adviser and worked in various areas of Banking and Finance law, including Aircraft finance, Acquisition finance, Property finance, Securitisation, Domestic Medium Term Note Programmes and Principal finance. Today Luyolo is a Director for a number of companies within the Debt Capital Market space. Notably he is a Director for ED INL Investments (Pty) Ltd (Investec Limited BEE Company), Siyakha Fund (Standard Bank Securitisation Vehicle), Commissioner Street No 5 (RF) (Pty) Ltd (Absa Capital Securitisation Vehicle), and DBX Trackers (Deutsche Bank Exchange Traded Fund Vehicle).
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Luyolo Poswa Chief Executive Officer Luyolo served his Articles of Clerkship with Deneys Reitz Attorneys from 1998 to 1999 and was duly admitted as an Attorney in March 1999. He focused primarily on Maritime Law while at Deneys Reitz. He spent a year in the United Kingdom between 2000 and 2001 pursuing a Master of Laws Degree (LLM) (International Business Law) at the University of London (UCL). In 2002 he joined Absa Corporate and Merchant Bank (Absa Capital) and worked in the Debt Capital markets division specialising on securitization, Domestic Medium Term Notes and Corporate Bonds, loans and asset backed commercial paper conduits. He also managed a ZAR 15 billion commercial paper conduit vehicle. In April 2007 he joined Investec Capital Markets as an in-house Legal Adviser and worked in various areas of Banking and Finance law, including Aircraft finance, Acquisition finance, Property finance, Securitisation, Domestic Medium Term Note Programmes and Principal finance.
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The other individuals who comprise the leadership of the business are Nima Gagjee, Director of Conveyancing and Notarial, Ivan de Fanti, Director of Litigation, and Goitse Pilane, Director of Banking and Finance and Corporate and Commercial. Nima Gagjee served her Articles of Clerkship at Gildenhuys Van Der Merwe Inc., now Gildenhuys Malatji Attorneys, in Pretoria where she gained exposure to personal injury claims, insurance law and commercial law. Nima was admitted as an Attorney in March of 2003. Post admission she worked as a Professional Assistant at Bhadrish Daya Attorneys from 2003 until 2005, where she specialised and practiced in various spheres of civil litigation. After successfully passing the conveyancing examination, she was duly admitted as a Conveyancer in October of 2004. In order to pursue her passion in conveyancing and gain exposure in the field of conveyancing, Nima joined EY Stuart Attorneys in Pretoria in 2005 as a Conveyancer, and succeeded to become a Director of EY Stuart Attorneys in 2006, where she practiced primarily in the area of conveyancing. It was in April 2010 that Nima joined Poswa Inc., as a Director and head started the Conveyancing Department. In 2011 she was instrumental in obtaining the Bronze Top Supporting Source of Business Award, from ABSA Home Loans, in the Gauteng region for Poswa Inc. Ivan de Fanti served his Articles of Clerkship at Woodroffe & Kleyn Attorneys
â&#x20AC;&#x153;Poswa Inc. focuses on tailor made legal solutions that broaden business horizonsâ&#x20AC;?
Poswa Incorporated
in Durban from 1999 to 2000 and was duly admitted as an Attorney on 18 July, 2000. Following his admission Ivan worked as a Professional Assistant at Woodroffe & Kleyn Attorneys until June 2001 when he relocated to Johannesburg. Between June 2001 and March 2012 De Fanti worked as Professional Assistant, Junior Associate, Associate and Partner at Moodie and Robertson Attorneys, specialising in Local Government Law focusing on Property Law and in particular Town Planning Law, Building Law and Outdoor Advertising Law. Ivan joined Poswa Inc. on 1 April 2012 as a Director in the Litigation and Alternate Dispute Resolution Department. Goitse Pilane is a Director in the Banking and Finance, Corporate and Commercial Department at Poswa Inc. In January 2000,
Goitse commenced his practical legal training and in April 2000 joined a mediumsized law firm in Pretoria. During May 2002, Goitse joined the Road Accident Fund as a Claims Handler at the Pretoria branch. In January 2006 Goitse joined Routledge Modise Incorporated as a Candidate Attorney, before going on to be appointed as an Associate in 2008 and subsequently as a Senior Associate in 2010. Some of the transactions that Goitse worked on during his stay at Routledge Modise Incorporated included advising Transnet on the Credit Facility Agreement concluded with Agence Française de Development for the advancement of a credit facility of ZAR2 billion to part-fund Transnetâ&#x20AC;&#x2122;s ZAR4,6 billion programme to expand the Cape Town Container Terminal. In April 2011,
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Poswa Incorporated
“When it comes to working with its clients, Poswa Inc. continuously strives to go beyond being mere service providers”
Goitse was appointed as a Director in the Corporate and Commercial Department of Routledge Modise Incorporated. Prior to joining Poswa Inc., Goitse joined Cliffe Dekker Hofmeyr Inc. as a Director in the Projects and Infrastructure practice. His experience in the Projects and Infrastructure practice at Cliffe Dekker Hofmeyr Inc. includes having advised various clients in the public and private sector on aspects of Corporate and Commercial law. Some of Goitse’s notable transactions include advising the Gauteng Tourism Authority on the feasibility of merging the two projects listed in terms of the Blue IQ Investment Holdings (Pty) Ltd Act 5 of 2003 with the Gauteng Tourism Authority into a single entity, advising Siemens on the Manufacture and Supply Agreement and the Technical Support and Spares Agreement in respect of its bid on the PRASA Rolling Stock Fleet Renewal Programme, and advising the South African Post Office on the roll-out of the set top boxes as part of the digital terrestrial television migration project. Goitse’s clients today include the Public Investment Corporation, the South African Post Office and the Johannesburg Tourism Company. When it comes to working with its clients, Poswa Inc. continuously strives to go beyond being mere service providers. In addition to being specialists in commercial law, the firm actively embraces the wider business context and makes it their responsibility to be fully in touch with the frameworks and implications of developments in all key South African markets. In doing so it ensures that it remains a valuable intellectual partner to every one of its clients.
Major clients pf Poswa Inc. to date include ABSA Bank Limited, Nthwese Investment Holdings (Pty) Ltd, Mmela Financial Services (Pty) Ltd, Doves Group (Pty) Ltd, South African Revenue Services, Omnia Group (Pty) Ltd, Kapela Investment Holdings (Pty) Ltd, SA Home Loans, Transnet SOC Ltd and The Land and Agricultural Development Bank of South Africa (Land Bank). Other past recipients of the firm’s services come from a diverse range sectors and include South African Airways SOC Ltd, The Public Service Education and Training Authority (PSETA), Nthwese Properties (Pty) Ltd, Petro SA SOC Ltd, Discovery Health and National Treasury. Key commercial transactions spearheaded by Poswa Inc. on behalf of many of these clients include The Land Bank’s ZAR10 billion Domestic Medium Term Note (DMTN) Programme, Mmela Financial Services’ ZAR2 billion Transportation Transaction, BDO South Africa Incorporated’s Corporate Finance Advice/BEE Subscription of Shares Transaction, Transnet’s US$6 billion Global Medium Term Note (GTMN) Programme, PPC Ltd.’s ZAR6 billion Domestic Medium Term Note (DMTN) Programme and the National Treasury’s US$2 billion Bond Issuance.
Poswa Incorporated
+27 11 783 8877 info@poswainc.co.za www.poswainc.co.za
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A very happy anniversary Lean Systems Program Celebrations are afoot at the University of Kentucky where 2014 marks the 20th anniversary of its revolutionary Lean Systems Program words by
Will Daynes
research by
Vincent Kielty
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n approach to production practices that emphasises efficiency through the systematic identification and elimination of waste, the lean approach was derived from the Toyota Production System, developed in 1948. The lean approach seeks to produce the maximum amount of value for the customer from resources expended in production. “Lean is about the endless pursuit of converting resources, materials, equipment, labour and energy most effectively and
A
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efficiently,” says Glenn Uminger, the University of Kentucky’s Lean Systems Program director. “The goal is to deliver the highest customer satisfaction with zero waste, while providing an engaging and rewarding environment for employees and delivering a good return for shareholders. This applies to any industry, including manufacturing, service, transportation, healthcare, restaurants, even government.” This year marks 20 years since the University of Kentucky took its first
Lean Systems Program
“This year marks 20 years since the University of Kentucky took its first steps towards becoming one of the world’s leading lean systems trainers”
steps towards becoming what is today recognised as being one of the world’s leading lean systems trainers. Prior to 1994, no comprehensive academic study of the Toyota Manufacturing System had been conducted, nor did an academic centre exist where the principles of the system could be explored and taught, refined, elaborated, and tested experimentally. This all changed in March of that year when Fujio Cho, president of Toyota Motor Manufacturing U.S.A. in Georgetown, Kentucky, sent what
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would become a historic letter to Kozo Saito, professor of mechanical engineering at the University of Kentucky’s College of Engineering. The letter outlined the goals of a proposed collaboration between the University and Toyota, and marked the establishment of a partnership for research on painting technology and lean systems training that has flourished now for two decades. “Cooperation between the University of Kentucky and Toyota was a success from the start,” said Saito, now director of the Institute
of Research for Technology Development (IR4TD). “Kentucky is a manufacturing state and needs to advance its technology constantly to maintain global competitiveness. In keeping with the lean philosophy, Toyota wanted to learn and share knowledge, which is the basic mission of the University. It’s a natural fit.” Working with Toyota, the University of Kentucky’s College of Engineering established the Lean Systems Program to provide training in the Toyota Production System. Starting
“Cooperation between the University of Kentucky and Toyota was a success from the start”
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Lean Systems Program
of Kentucky has grown into a in 1996, the program began Did you know? successful program. Through to offer certification in Lean the Lean Certification Program, Systems, currently featuring the Lean Executive Leadership former Toyota employees as 1948 Institute, and a variety of instructors. Leadership training The year that the different custom-tailored training was also first offered that year, Toyota Production opportunities, an average of with the creation of the Lean System was first 1,500 attendees from about 75 Executive Leadership Institute. developed different companies are served A year later, in 1997, the by the program each year. University played host to the first 20,000+ people “The Lean Systems Program International Lean Manufacturing Served by the Lean has been truly fortunate to conference, featuring a keynote Systems Program in experience the benefit of Dr. address by Mikio Kitano, its 20 year history Cho’s vision, and has developed president of Toyota’s Kentucky and flourished,” Uminger said. manufacturing operations, while “Overall we are humbled to be in 1998, the Toyota Fellows in a position to truly make a Program was created to provide difference and contribute to society.” a unique opportunity for students who want Saito meanwhile believes that the program to help shape the future of manufacturing. will continue to find ways to grow and improve. During the course of the last 20 years “When we started Toyota-sponsored lean the Lean Systems Program at the University
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Lean Systems Program
“The Lean Systems Program has been truly fortunate to experience the benefit of Dr. Cho’s vision, and has developed and flourished”
and R&D programs, Toyota president Cho gave us his advice: ‘Do not rush, but keep in mind a steady gradual progress over many years to come.’ We’ve kept his advice in our hearts, but never thought we could reach our current status. The Lean Systems Program itself has served over 20,000 people from 48 states and 33 countries over 20 years. We couldn’t have accomplished that without practising continuous improvement. But we can’t stop here, and will continue our journey for the benefit of Kentuckians, the state, the nation, and the world.” The 20th anniversary of the program will be formally observed of 28 October, 2014, with a special program jointly coordinated and sponsored by the University of Kentucky and Toyota. Held in conjunction with the Fourth Annual Lean Users Conference, the celebration will include a reception and dinner with special speakers, company displays and a video, and will be covered in greater depth within Business Excellence later in the year.
Lean Systems Program
(859) 257-9000 @UKYpres www.lean.uky.edu
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Perth A
Western Austr
Perth Airport is the hub for Western Australia’s domestic tra the entrepôt for all of its trade: it is expanding to meet th words by
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John O’Hanlon
Airport
straliaâ&#x20AC;&#x2122;s airgate
affic, its channel to Asia, Europe and beyond, and definitely hese challenges and to cope with future population growth research by
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Terminal 1 landside food beverage area
When in 2012 we last visited Perth Airport in these pages Brad Geatches, Perth Airport’s CEO, had already overseen a period of unprecedented growth as Perth became established as the capital of Australia’s fastest growing state. Currently with a population of around two million souls, based on current trends, Perth’s population will grow the fastest of any Australian city and overtake Brisbane in about 15 years’ time when they both reach three million people. According to the Australian Bureau of Statistics’ mid-range
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growth projection, 5.5 million people will live in Perth by 2061, compared with Melbourne (8.6 million people), Sydney (8.5 million) and Brisbane (4.8 million). The city’s infrastructure needs to prepare to meet these predictions, according to Committee for Perth CEO Marion Fulker: “This is a game changer. It means that we potentially have less than 40 years to more than double the number of houses, roads, public transport, hospitals, schools and services than have been built in the region over the past 185 years.”
Perth Airport
The airport will be crucial in supporting this level of expansion. In the 2012/13 financial year, Perth Airport recorded 9.9 million domestic passengers and 3.7 million international travellers through its terminals, an overall increase of 8.2 percent on the previous year. Traditionally the European routes have been a mainstay of traffic into Perth and there has been growth here with UK inbound traffic up by 6.7 percent and strong growth in Italian, French and German visitors. All in all, international traffic is still growing,
and immigration data to March 2014 indicates growth of 10.9 percent in Australian outbound travel in the last financial year. Ultimately, Perth Airportâ&#x20AC;&#x2122;s vision is to consolidate all commercial air services to one precinct, near the current International Terminal (T1), which will ensure greater convenience for customers. Competition to Europe will intensify further when the rapidly growing Middle Eastern carrier Etihad Airways begins daily flights to Perth in July 2014. However a big advantage Perth has
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Connecting communities Leaders in Airports Throughout Australia, New Zealand and the South Pacific, Fulton Hogan is the market leader in providing airport operators with pavement solutions for runways, taxiways, aprons and other airport surfaces. Our extensive experience, from major international airports to remote air strips, recognises our technical knowledge of heavy-duty pavement construction, combined with our know-how in managing complex civil projects.
Contact us: Phone: +61 3 9340 6200 Email: airports@fultonhogan.com.au www.fultonhogan.com/airports
Perth Airport
International expansion
“The entry of SCOOT into the Perth market in December 2013 has boosted competition in the market”
lies in its close proximity to South-east Asia, with destinations such as Indonesia and Singapore popular with Perth residents. “The entry of SCOOT, the Singapore-based lowcost long-haul airline, into the Perth market in December 2013 has boosted competition in the market,” says Geatches. “Low cost carriers now account for over 30 percent of international seats and passengers now have the choice of up to ten different carriers for access into South-east Asia.” However, he adds, growth in the domestic market driven by the mining sector has slowed considerably since we last spoke, as many projects have moved from the construction to the production phase and consequently
for the time being fewer personnel are being shuttled inland to the mines. Perth Airport is much more than just a runway and some terminals though. Covering more than 2,100 hectares, approximately 53 percent of the land is used for aviation. A third is used for non-aeronautical property development as it is a critical commercial land supply for the city of Perth and a natural home for transport/logistics companies and many of the service companies that work in the resource sector; and the remainder is set aside for permanent conservation of fauna and heritage sites. Additionally, it is well connected by road with the port of Fremantle, and is close to the main rail freight hub. Nevertheless in
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[ Issue 89 ] BE Weekly
Perth Airport
2011 Perth Airport commenced an extensive, privately funded $750 million redevelopment programme. “Our programme has gained significant momentum, with construction well advanced in and around all of the terminal buildings – and indeed right across the airfield,” Geatches says. The first component of the redevelopment – the new Domestic Terminal 2 (T2) – was completed in less than 18 months and opened to the public on 2 March 2013. The design and construction of T2 was driven largely by the resource sector’s fly-in, fly-out (FIFO) workforce deployment model, and represents a major step forward in meeting the requirements of the resource sector, which remains a major customer. “We have a significant departure peak in the morning,” says Geatches. “We are just one element of a very substantial logistics chain for the mining companies,” he stresses. The location of T2 next to the current International Terminal (T1) has improved the travel experience for these workers, and other passengers from regional Western Australia, as they are now able to connect through to international services in one convenient location. T2 includes some innovative environmental features such as rainwater harvesting and re-use for toilets and gardens, with 2000 cubic metres of underground storage capacity; underground ducting of ventilation for air-conditioning to reduce energy use; and a sophisticated building management system to reduce energy consumption during operations. There is also a co-generation plant that uses its heat to power the air-conditioning for both terminals, which is expected to reduce greenhouse gas emissions by up to 55 percent. The second major project is the $80 million expansion of the international arrivals area and includes extending T1 by 60 metres to the east, effectively doubling the size of the existing arrivals area. The first phase was completed in November 2013 when the new immigration arrivals area was relocated into an
brierty Brierty has been working with Perth Airport since 2007, delivering a significant number of operationally critical projects. Brierty have delivered key facilities in time for peak holiday periods minimising public and stakeholder disruption. Brierty understand the operational environment and has the capability to find solutions aligned with Perth Airport’s objectives. www.brierty.com.au
New departures hall
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Pier airside looking at T1
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[ Issue 89 ] BE Weekly
Perth Airport
“We were acknowledged as one of the top 10 best performing companies in Western Australia for Corporate Wellness”
extensive area, more than double the size of the previous immigration area, next to a new inbound walk-through JR/Duty Free store. This first phase also included the completion of new offices on level 1 for Customs and Border Protection and the Department of Immigration and, on the ground floor, new toilets, car rental booths and a quiet/prayer room. Work is now well underway on the ground floor to double the size of the baggage reclaim and quarantine areas, with the first of three double loop baggage belts now in operation. The international departures area is changing too. With 16 additional check-in counters, four aerobridges, a new split level departures lounge and two A380-capable aircraft gates, the first of which became operational in December 2013, the departures experience will be transformed. The third major project – the $190 million Domestic Pier and $145 million expansion of the international departures area – is also going well. This work represents the largest and most complex project in this current phase of redevelopment. When completed, the contemporary designed pier will become home to Virgin Australia’s domestic services and offer 12 aerobridge gates, 14 check-in counters, new check-in and bag-drop technology, a large domestic passenger security screening zone, a premium guest lounge for Virgin Australia, a central retail and dining area with an impressive range of outlets, a large baggage reclaim area and additional retail outlets near the front of the terminal. Energy-saving aspects of this project include external shading panels and skylights,
energy efficient lighting, temperature control measures in intermittently occupied spaces, travelators and escalators activated by motion sensors, and automatic water efficient fixtures in all restrooms. This work represents a unique partnership of private and public sector organisations working together to a common vision. That is why, says Brad Geatches, Perth Airport invests heavily in the health and well-being of its staff. “This was recently recognised when we were acknowledged as one of the top 10 best performing companies in Western Australia for Corporate Wellness by HBF (a leading private health fund). We implemented a Wellness Program offering a range of opportunities that promote a healthy lifestyle including on-site therapeutic massages, reflexology, skin checks, nutrition and fitness sessions. The results have been very positive with less absenteeism, better productivity and greater retention of staff.” Of course professional training is a high priority too. Team members are encouraged to undertake tertiary studies through the Study Assistance Program, and in partnership with the Central Institute of Technology, they are also offered a Recognition of Prior Learning (RPL) program to help them achieve formal qualifications.
Perth Airport
+61 8 9478 8888 info@perthairport.com.au www.perthairport.com.au
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