QIT - Value Analysis.

QIT
Competitive
&
Profitable
QIT-Fer et Titane inc.
1.The Company
2.The Activities
3.The Market
4.The Process
5.The Products
…
6. Protecting the Environment
7. Positioning QIT for the future
8. VE/VM and QIT
9.The two (2) triangles
THE COMPANY
ƒQuébec operations since 1950
ƒMines and Metallurgy sectors
ƒImportant economical actor in Québec
THE ACTIVITIES
Lac Tio
HavreSaintPierre
SorelTracy
ƒIlmenite ore
extraction at Tio
Mine
ƒTransformation
of ore at SorelTracy
metallurgical
complex
THE MARKET
ƒ Sales in over 40 countries
ƒ 90 % exports
ƒ Member of Rio Tinto Group
ƒ Strategic worldwide sales offices
THE PROCESS
HSP
QMM Slag
Madagascar
Titanium Slag
UGSMD
Mine
UGS Plant
Steel
SORELSTEELMD
Totanium
Slag
Ore PreTreatment Plant
Steel Plant
Iron
SORELMETALMD
Iron & Steel
Powder
ATOMETMD
Iron
Smelter
Furnaces
Titanium Slag
SORELSLAGMD
Quebec Metallic
Powder
THE PRODUCTS
ƒIlmenite Ore
ƒTitanium Dioxide
ƒCast Iron
ƒSteel Billets
ƒMetal Powders
Protecting the
Environment
ISO
14001
Positioning QIT for the
Future
Health &
Safety
Key
Objectives
5 year plan
Key
Objectives
2007
Teams
targets
2007
Operations
Finance
Cost Control
Human
Resources
Market
Client
Quality
Community
Sustainable
Development
QMM Strategy
1. H&S – ZERO ACCIDENT
2. OPERATIONS – MEET THE PLAN
3. MAXIMISE ROI
4. EXCELLENCE IN OPERATIONS
5. INCREASE MARKET SHARE
6. MEET SD OBJECTIVES
Project challenges
1. Smelting of two (2) ores on the
same site
2. Doubling the production
3. Impact on operations
4. Limited capital
5. Long schedule
6. Contingency management
QIT METALLURGICAL
COMPLEX
Sorel-Tracy Site
TDP
fer
Charbon
Centre technologie
Jigs
Entretien
ExOp
ExOP
Quai
UAE
Rendement
fours
QMM Project team
Opt.
concassage
Ingénierie d’usine
Génie industriel
QMM
IPT
Production
Classificateur
42
C-11/C-11A
TDP Scorie
Gaz CO
Métallurgie
SF3,6,7,8
SPP
Mine
Transfo.
SF2,6,7,8
Rendement
kilns
Environnement
Soufre
ORGANISATIONAL CHART
SurIntendant
Proc.
SurIntendant
Proc.
SurIntendant
Production
SurIntendant
Ent.
A.Crisostomo
QIT Area
Manager
S.Paul-Hus
Dir. Exec
SurIntendant
Production
QMM
Management
Executive Commitee
SurIntendant
Ent.
G.Grégoire
QIT Area
Manager
Y.Langlois
Dir. UGS
SurIntendant
Proc.
M.Dulong
QIT Area
Manager
A.Roy
Dir. Exec
SurIntendant
Production
Steering Committee
G.Issid
QIT Project Manager
P.Girard
HA Project Manager
G.LeClair
HA Principal
SurIntendant
Ent.
R. Tremblay
Commissionning.
Mgr
A.DaSilva
Constr. Mgr
A. DaSilva
Health & Safety
Y. Sylvestre
Procurement
Health & Safety
A. DaSilva
Engineering
G.Gaudreau
Électricité
D.Marchand
HA Project
Services
R. Tremblay
Process
B. Robitaille
Instrumentation
Y.Sylvestre
Controller &
Adm. Serv.
QIT Project
Services
S.Bédard
Engineering Mgr
M.Cartier
Construction Mgr
Commissioning
Mgr
A.Trudel
Procurement Mgr
J.Grandmont
Project Controls
Manager
A.De Mori
Process
N.Gauthier
C/S/A
Y.Couture
Mechanical
I.Lajeunese
Piping
C.Tessier
S&PC
M.Chiasson
Electrical
Y.Tremblay
Layout
Coordinator
QIT Teams
Variable
Entretien
Variable
Production
Variable
Mécanique
Variable
Instrumentation
QIT
J.Dalpé
QITArea
Manager
Secteur Reception du
minerai
(Quai, Dôme)
JF Marchand
HA Area
Manager
QIT Area
Manager
Secteur
Enrichissement du
Minerai (OPP, 1.1+)
M. Gendron
HA Area
Manager
A.Crisostomo
QIT Area
Manager
Secteurs Traitement
du minerai
(Transport, fours,gaz
CO)
JC Paradis
HA Area
Manager
G.Grégoire
QIT Area
Manager
Secteur Traitement de
la scorie (cours, SPP)
M.Bibeau
HA Area
Manager
J.Dalpé
QIT Area
Manager
Secteur Expédition de
la scorie
(Shiploader)
Y.Couture
HA Area
Manager
Area Managers
HA Engineering
Team
HA
VE/VM at QIT
1.1992-1997
2.1997
3.1997-2007
Sensitization
1st Workshop
Application
VE/VM and Projects
1.Define Function
2.Satisfy Function
3.Create VALUE
MANAGING EXPECTATIONS
¾
Production
o
¾
Technical
o
¾
Optimize process
HSE
o
¾
Minimize change
Technology
o
¾
Optimize value
Engineering
o
¾
Maximum tonnage
No negative impact
Management
o
All of the above
THE TWO TRIANGLES
1.Production triangle
2.Project triangle
PRODUCTION
INPUT
PLANT
Nominal Capacity
Efficiency
Utilisation
OUTPUT
PROJECT
INPUT (Business case)
PROJECT
Engineering
Procurement
Construction
OUTPUT (Facilities)
PRODUCTION TRIANGLE
Nominal Capacity
Expansion
Project
Net
Production
Capacity
Utilisation
Excellence in Operation
Industrial Engineering
Plant Metallurgy
Efficiency
Technology
Energy
R&D
PRODUCTION TRIANGLE
$$$
Nominal Capacity
$$
Net
Production
Capacity
Expansion
Project
Utilisation
Excellence in Operation
Industrial Engineering
Plant Metallurgy
Efficiency
Technology
Energy
R&D
Project Triangle – Key
Drivers
1.Cost
2.Schedule
3.Performance (Scope, Quality,
Capacity)
WHICH IS MOST IMPORTANT?
Priority Triangle
YOU CAN HAVE IT :
• CHEAP
• FAST or
• GOOD
Pick any two.
PRIORITY TRIANGLE
CAPITAL COST
X
X
Sustainable
X Development X
X
SCHEDULE
X
PERFORMANCE
QMM – VALUE ANALYSIS RESULTS
Cost
Savings
Incremental
Capacity
Increase
Area #1
Area #2
Area #3 Area #4
Total
(59%)
(12%)
(6%)
(23%)
(100%)
2%
31%
51%
47%
25%
27%
15%