Laduma Q1 2014

Quarter 1, 2014

LADUMA

Quality award – page 5 Production up – page 5 CHIETA accredited – page 7

ONE TEAM - ONE GOAL !

MESSAGE FROM THE MD In my message at the end of Q4 2013 I said that the challenge we faced for 2014 was to maintain the level of performance achieved in 2013. It is pleasing to see that the first quarter of the year got off to a good start with sales volumes 16% up on the previous year. In fact such was demand that we postponed the annual maintenance shutdown by 3 weeks and still were unable to fulfil all enquiries. The logistics associated with our traded product sales is limiting the realisation of the potential in this market and we will be focusing our supply chain activities on improving the inbound logistics from India in order to increase sales from this source.

Margins are expected to be tight this year and

indications are that inflation is on the rise, this not only requires focus on cost control, but continual evaluation of those business activities that we take for granted. Anything that “we have always done this way” should be reviewed and considered with fresh eyes; is it really necessary, does it create value and is it being done not only the most effective, but most efficient way?

I believe there are many business practices that have evolved at NCP Alcohols that are extremely effective, but are not necessarily efficient.

There is potential to streamline many of our “effective” practices to make them more efficient, ie pursuing the right goals in the most responsible manner with the least waste of time and effort.

With this in mind we will be

reviewing our product and market portfolios to ensure that NCP Alcohols delivers best value to its customer at sustainable profit margins.

This will require ongoing review of our supply chain and optimising alcohol supply from various sources to the correct markets. Ensuring that maximum advantage is made of our SADC, COMESA and other supply bases will assist our customers.

In addition to usual business, the long-awaited publishing of the mandatory biofuel rules appears to be scheduled for May. With these in place a number of new distillery projects will commence construction; these plants are likely to be commissioned in 2016 and will create employment opportunities for trained operators. Our

apprenticeship programmes have even more relevance in this context and it is our plan to be able to assist with the training of operators for these plants.

Visiting chemical engineers impressed Forty-five members of the South African Institute of Chemical Engineers (SAIChE) representing various industries such as Umgeni Water, SAPREF, ISHECON, WSP Group, and Wetspec, visited NCP Alcohols on 16 April as part of their commitment to improving technical competence through continuing education programmes that include plant visits.

Managing Director Peter Starling welcomed the delegation, after which they were divided into five groups for plant tours with hosts Stephen Kitching (Chemical Engineer), Musa Luthuli (Shift Manager), Arthur Ndaba (Process Technician), Siphokazi Majozi (Production Manager: Secondary Products) and Lumeshni Govender (Process Technician). Plants visited were the fermentation, evaporation, top distillery, vinegar and rum plants.

Said Lumeshni Govender, “The SAIChE delegation expressed their appreciation to NCP Alcohols for hosting them and commended the company on its exceptional housekeeping. We are very proud of each and every employee for the part they played in hosting the SAIChE delegation. NCP Alcohols and our employees will be remembered for their hospitality and immense passion for what they do.”

2

SAFETY is a way of life

g

lin Peter Star

ngineers hemical e s. c f o n o ti a all group d a deleg tour in sm welcome t ls n o la h p o lc a NCP A them on and took recently,

MENTORS ALL The eight people shown below are all mentors to NCP Alcohols’ in-service trainees

Ace Govender Quality Manager

Stephen Kitching Chemical Engineer

Mervin Kullen Engineering Planner

Lorraine Mudaly SHEQ Manager

Zinhle Mdadane Production Manager

Shon Roopnarain, Electronic/Instrument Supervisor

Judy Somers Electrical Superintendent

Robbie Taylor Mechanical Superintendent

The young bloods Front cover: Here they are. With “young blood” flowing through their veins, the 2014 In-service Trainees are ready to infuse the company with their innovative, creative ideas. Their mentors are Mervin Kullen, Engineering Planner, and Robbie Taylor, Mechanical Superintendent for the Mechanical Engineering students.

Zinhle Mdadane and her production team look after the young students on the plant while Ace Govender, Laboratory Supervisor and his team look after the analytical chemistry students. Judy Somers, Electrical Superintendent, mentors the electrical engineering students and apprentices while Shon Roopnarain, Instruments Technician, is mentor to the instrument-ation in-service trainees. More photos of trainees on Page 8.

Turning good into great Making good become great takes courage and passion and that is what Mervin Kullen, Engineering Planner, has. Together with the Engineering Department he decided to start an on-the-job training experience for the new recruits and inservice trainees or students passing through the doors of NCP Alcohols. “I have so much to teach someone that is new. I have dedicated my life to my work and decided that it is time to give back some of the knowledge that I have gained,” said Mervin.

The project is not complete but the aim is to get everyone in the engineering workshop involved in assembling a sample board in which plant situations can be simulated and trainees can experience first hand what some of these tools, instruments and mechanical gear look and feel like.

Judy Somers, Electrical Superintendent, has joined in and is in the process of doing the same for the electrical department.

“This project is a team effort by the entire engineering division and everyone is considerably excited to get this up and running,” said Kullen.

A spill, a slip, a hospital trip

3

Sort, straighten, shine, sustain, standardise Zinhle Mdadane, Production Manager, gave a refresher training course to the Operations Controllers in March on the 5Ss. The 5Ss stems from the Japanese lean management system and stands for: Sort, Straighten, Shine, Standardise and Sustain.

The 5Ss housekeeping management is an important culture that is applied in all work environments. The workplace is kept clean, neat, safe and comfortable so that it will produce products with high quality, reduced cost, timely completion, guaranteed safety, high morale and in a secured environment.

Rakesh Moona, Operations Controller, then gave an overview of action plans derived from findings made by operations controllers based on the visual management side of lean management. Some of the findings included small items such and hooks in the control room to hang safety helmets up.

Gary Bregovits, Operations Executive, said the hardest part would be to implement the project, and he encouraged the enthusiasm with which the production team embraced this way of managing their day-to-day operations.

NCP Alcohols embraces the Lean management system. Lean manufacturing, known as the Lean enterprise, Lean production, is a methodology that focuses on the use of production practices and empowering resources to create value for customers by eliminating the waste that occurs in the process of making more effectively and efficiently with better output quality.

5Ss Our visitors get ‘chirped’

Operations Controllers are seen above and at top taking part in a feedback session held during the recent shutdown on the 5Ss of good housekeeping.

How we comply with air-freight regulations Three NCP Alcohols employees recently went on threeday refresher courses to keep them up to date with all IATA Dangerous Goods Regulations. They were Bala Padayachee, Nomvula Dlamini and Rashina Purdhen.

Said Bala Padayachee, “From time to time we have to airfreight samples of ethanol and vinegar to clients overseas, and obviously we have to comply with the regulations for safe transport of potentially hazardous goods by air. Those regulations change fairly often, so these courses are most useful and keep us fully compliant.”

Sarah Stott, Draughtswoman, makes sure that our feathered visitors are well looked after during their stay. Sarah fills our feeder and water container to the brim making sure that our human visitors are welcomed with some friendly chirping.

4

Accidents hurt, safety doesn’t

Keeping us compliant .... Bala Padayachee, Nomvula Dlamini and Rashina Purdhen.

Another quality award for NCPA After having achieved a very high level of quality and a grand gold and/or gold award for three (3) consecutive years, the Organizing Committee of the Monde Selection International Quality Institute awarded the International High Quality Trophy 2014 to NCP Alcohols for their Ethanol and Light Spirit.

Production numbers rock Awesome production figures were achieved during January and February, despite excessive heat and challenges to keep the plant cool. Average production for February 2014 was 190kl per day. This achievement is just shy of the plant’s record of 192kl average production achieved in August 2013.

Said Zinhle Mdadane, Production Manager, “This was achieved while making sure that none of the alcohol was lost due to the heat. It is also very difficult to keep this up on a sustainable basis because the temperatures around this time rise year on year. Nevertheless, we are obviously doing it right. Congratulations to all involved.”

Peter Starling said: “NCP achieves these awards year after year, I am pleased to see we never take this for granted and have upped our game from Gold to Grand Gold medals for the past 3 years. Being awarded quality trophies from the Monde Selection International Quality Institute is a truly spectacular achievement for everyone involved in our procurement, production, support services and supply chain divisions.

“Together, we keep our standards high and as a result our clients can be assured of purchasing an internationally recognised quality product from us.”

Part of the Production team were, from left, Operations Controllers Ravi Govindsami, Sma Zimande, Selby Zungu and front, Shift Manager Wilfred Ngubane.

Be serious about Safe Work Permits One of the essential elements of working safely is the Safe Work Permit. It is a legal document, and it is required before work can start on any non-routine job.

Says SHEQ Officer Kelvin Timm, “The permit system is designed so that the correct safety precautions are carried out so everyone can go home at the end of their shift ‘all in one piece’. For our part, we make sure staff and contractors who need to be permit-trained are trained on the Safe Work permit system and then every two years they do a refresher course, just to make sure no complacency or short-cuts have crept in.

Typically, permits are required before doing hot work, cold work, hazardous work, and confined-space vessel entry.

“You can get a permit from several places, but mostly from the Control Rooms, the Site Logistics Office, or from Pat or Sue in the Admin building. Be prepared to do a Risk Assessment in the process.

“And please remember this: you have to sign off at the end of the job or at the end of the day. Permits are valid for only one day, and there are consequences for those who do not sign off. Remember the permit is a legal document and it has to be taken seriously.”

e

ars

y 3 1

..

la

.. r e t

Turning 13 is no small feat, and employees such as Ritesh Puran, Assistant Planner, celebrated the birthday of NCP Alcohols on 1 February with a staggering array of cakes and pastries to mark the occasion.

Avoid the worst, put safety first

5

p o r c e h ft e...

onc s e e n i ice tra

erv s n i e r we

o m a e r C

They

The Ex In-Service Trainees are the ones that could not leave the awesomeness of the NCP Alcohols family and culture. Meet the seven students that stayed on after their training with NCP Alcohols was completed, and see why they did so.

Arthur Ndaba – Process Technician Started as an In-Service Trainee in 2008, and was appointed as Process Technician in 2011.

“I think everyone wants to be associated with a world-class company, if one has big dreams. I was fortunate to coincide with the arrival of Stephen Kitching, Process Engineer, at the company, which made the steep learning curve a bit easier. I think from a student development point of view, NCP Alcohols is like an industrial academy, and a great place to work at, because of its friendly environment.”

Louie Pillay – Utilities Manager Started as an Electrical In-Service Trainee in January 2010 and was appointed as Utilities Manager in July 2013.

“I chose to work for NCP Alcohols because of the opportunity to grow with the company. The warm welcome I received on my first day of training and the fact that I was always considered part of the NCP Alcohols family was an important part of my decision to stay,” said Pillay.

into anything and anybody with the right support.

To be able to make a difference and play some role into this operation is what I look forward to everyday here.”

Lumeshni Govender – Process Technician Started as a Chemical Engineering InService Trainee in January 2010 and was appointed as Process Technician in February 2012.

“I love the culture and the environment I work in. I also enjoy what I do –working in projects is never a bore! It is dynamic, challenging and a learning curve all the time. The exposure I get and knowledge I gain is priceless!

Rashina Purdhen – Qualtiy Technician Started as a Biotechnology student in 2010 and was appointed as a Quality Technician in 2012.

“NCP Alcohols provides a foundation for attaining experience required in the industry and biotechnology.”

Judy Somers – Electrical Superintendent Started as an Electrical Engineering In-Service Student in 2009 and was appointed as Electrical Superintendent in 2012.

“NCP Alcohols is a company that allowed me to make mistakes, to learn and ultimately

Siphokazi Majozi – Production Manager Secondary Products Started as an In-Service Trainee in 2004 and was appointed as Operations Controller thereafter.

She became a Shift Manager, later a Section Manager and was promoted to Production Manager – Secondary Products in 2012.

“The operations here are relevant to my career and studies; the company is private and its size makes it possible for everyone to become significant in their respective roles. There’s a diversity of culture and skills – anyone can develop

6

Choose safety for your family

become a part of a team that strives for excellence. As the saying goes ‘Formal education will make you a living; selfeducation will make you a fortune’.”

Lucky Ntuli – Electrician Started as Electrical Apprentice in 2008 and was appointed as Electrician during 2011.

“NCP Alcohols helped me achieve my dream – becoming an electrician. I like being hands-on when I work, and my career at NCP Alcohols affords me the ability to do just that. The people at NCPA are so good and I enjoy being around them. My seniors taught me so much; most employees want to learn and pass on what they have learnt to their peers,” said Ntuli.

Zwe Mbhele – Operations Controller Started as a Chemical Engineering InService Trainee in 2009 and became Operations Controller in 2010.

“I would join NCP Alcohols again any time. The people I worked with during my in-service year were so friendly, humble and skilled that there was no decision to make really. The technical experience I gained from my colleagues then has helped me a great deal. Sharing knowledge comes with the territory – people around here are passionate about what they do and that passion rubs off.”

The Ex In-Service Trainees still at NCP Alcohols are, top from left, Lumeshni Govender, Siphokazi Majozi, Zwe Mbhele and Arthur Ndaba; and bottom, Lucky Ntuli, Louie Pillay, Rashina Purdhen and Judy Somers.

It’s official: We’re accredited by CHIETA NCP Alcohols is proud to be one of just a few companies in Durban to have achieved accreditation as a trainer of apprentices.

“This is definitely a feather in our cap,” says Carl Freyer, Engineering Manager.

“CHIETA, the Chemical Industries Education and Training Authority, sent two auditors here for a day late last year.

They were impressed with both the level of enthusiasm, commitment and skills among the mentors, and with the wide range of equipment and work experience available at NCPA.” The company is usually training two apprentices according to a formal programme at any one time. The process takes three-to-four years, during which time the apprentices spend about three months a year at the Shukela Training Centre at Mount Edgecombe where they learn the theoretical side. NCPA currently trains electricians and fitters and turners.

Instrument mechanicians are to be targeted once the company receives its accreditation for these artisans as well.

Adds Carl, “Obviously, we remunerate the apprentices we train, but being accredited now, we will be better placed to get discretionary grants from the CHIETA for this purpose. And in

Seen with the CHIETA certificates are, from left, Judy Somers, Osborne Mlambo, Mervin Kullen and Carl Freyer. addition, other companies like Sasol will want to send more of their apprentices to us. In both these cases, NCPA benefits.

And furthermore, at the end of their apprenticeships, our artisans can leave here confident they will find good jobs ‘out there’.“ Having apprentices on site provides the company with an opportunity to

assess their capabilities and in the case of Lucky Ntuli, on passing his trade test, this resulted in him being appointed as an electrician to fill an existing vacancy.

First Ghana shipment a success Weeks of planning came to a head at MidlandNCP, Ghana, on 23 October last year when mt Wine Trader Voy 90 docked at the port of Tema to discharge 2700 cubes of neutral ethanol for storage and distribution in various markets in West Africa.

Said Patrick Madladla, General Manager, “After the vessel docked, we carried out the necessary quality and quantity control procedures. Discharge took 16 hours, two hours less than expected, in spite of a minor leak being detected in the discharge hose – not surprising as the line had been out of operation for three years.

“All in all, the shipment was a success. Yes, we learned some lessons along the way, and the next shipment will undoubtedly go more smoothly.”

Patrick Madladla, whom everyone at NCP Alcohols will remember, is seen in the port of Tema, Ghana, during the discharge of mt Wine Trader Voy 90.

Your safety is in your hands

7

Social responsibility Prince Andile Dlamini is determined.

From spatula to sampling The story of Prince Andile Dlamini, Canteen Assistant with Chef Pume Sello in the company’s Chat & Chow restaurant is both feel-good and heart warming. Prince, as we all know, has plans to become something big one day and he literally will stop at nothing to achieve his dreams.

This remarkable young man has been working alongside Chef Sello for the past three years, and apart from his visible after-hour talents as DJ of Deep Tack House Music, he also wanted to join Ace Govender, Laboratory Supervisor, and his team. It wasn’t long before DJ Andy Brown (his stage name) started his sampler volunteering under the watchful eye of Daniel Xaba, Sampler.

These days Prince can be seen shuffling either the spatula in the canteen kitchen or the sampling bottle on the plant as a volunteer with the laboratory staff. You can catch DJ Andy Brown in action with his House Music at three different restaurants in Durban from Thursday to Sunday evenings.

More ‘young bloods’ The company’s 2014 In-Service Trainees are ready to infuse the company with their innovative, creative ideas.

8

Stop, Think, Recycle

NCPA believes in the transforming power of the arts Durban’s Elizabeth Sneddon Theatre buzzed with excitement as the FLATFOOT DANCE COMPANY’s 400 youngsters aged between 6 and 22 years, readied themselves for their annual concert “Dance Some More” on 26 October 2013. After a full year of afternoon classes and workshops hosted by the six resident dancers of FLATFOOT, these children stepped up to a professional theatre environment by wowing the audience with their skill, dedication and sheer dancing beauty. Hailing from areas like Umlazi, KwaMashu, Clermont and Glenwood/Berea, these youngsters

have committed themselves to dance.

The Artistic Director of FLATFOOT, Lliane Loots, very warmly thanked NCP Alcohols for its incredible support over the past three years in helping keep this work alive and for believing in the transformative power of the arts to ‘grow’ young South African citizens.

Businesses like NCP Alcohols see the value of supporting arts development like FLATFOOT, which in turn creates an understanding and compassion to support and nurture democracy.

We’re helping raise funds to rescue the innocent NCP Alcohols is now a proud sponsor of 15 cyclists who have challenged themselves to complete a gruelling 1860 km in 12 days between 15 and 26 April 2014 in order to raise funds towards building a new home in the Ingane Yami Children’s Village. This Trans African Adventure will take the riders from the West Coast of South Africa to Shongweni, about 30 km outside Durban, where the Village is.

Ingane Yami is a place of hope where innocent lives rescued from rejection, abuse, abandonment, poverty and hopelessness are placed into loving and nurturing families within the Village environment.

The Village is a non-profit outreach programme established as a result of the growing AIDS crisis in KwaZulu-Natal. The Village was

officially opened in March 2012 with an intake of children into the first house.

The Village will eventually comprise five clusters, totalling 25 homes. The first five homes and a community centre have been completed and the first nine children placed. The next phase began in February 2014 and will include the second five-home cluster and a resource centre.

The Trans Africa ride is intended to increase awareness of the Ingane Yami Village and to raise a minimum of R400 000 through donations and sponsorship, to build one of the homes in the second cluster.