Cement Plant Key Performance Indicators PDF

MMP GLOSSARY 2009

NB: This Glossary presents the indicators specific to MMP. For the full scope of Technical Indicators please also consult the CKHC Glossary.

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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ACCOUNTING Total Power expenditure Expenditure in finish grinding Total Heat expenditure Expenditure Up to clinker Average Specific Power Cost Expenses (Finish Grinding) / t cement Average Specific Heat Cost

LMU LMU LMU LMU LMU/Mwh LMU/t LMU/GJ

AC000X AC400X AC761X AC762X AR001X AR407X AR607X

LMU/t LMU/t LMU/t LMU/t LMU/t

CE005X CE007X CE008X CE016X CE042X

MJ/t

CR002X

MJ/t

CR003X

MJ/t

CR005X

GJ GJ GJ GJ % % % % % % % kWh/t kWh/t kWh/t kWh/t kWh/t

CR014X CR015X CR017X CR019X CR029X CR030X CR031X CR032X CR033X CR034X CR035X CR037X CR040X CR044X CR048X CR050X

kWh/t

CR051X

kWh/t

CR054X

kWh/t

CR056X

Mwh Mwh Mwh Mwh Mwh Mwh Mwh Mwh n t

CR057X CR060X CR064X CR068X CR070X CR072X CR074X CR076X CR077X CR096X

PRODUCTION COST ( cement costing) Average Unitary Technical Cost/t: (all types of cement) Combustibles expenses/t: (by type of cement) Power expenses/t: (by type of cement) Maintenance cost per tonne of cement produced Energy Cost per tonne of cement

CONSUMPTION RATIO Specific Heat consumption: raw mix drying to clinker (Up to clinker, all types of clinker, all types of raw mix, all types of fuel) Specific Heat consumption: burning (all kilns, all types of clinker, all types of fuel) Specific Heat consumption: kiln (by kiln, all types of clinker, all types of fuel) Heat cons : raw mix drying (Raw mix preparation, all types of fuel) Heat consumption : Total (All types of fuel) Heat cons : burning (all kilns, all types of clinker , all types of fuel) Heat consumed % Standard/high quality coal Pet Coke percentage: (all kilns, all types of clinker) Fuel oils percentage: (all kilns, all types of clinker) High viscosity fuel percentage: (all kilns, all types of clinker) Natural gas percentage: (all kilns, all types of clinker) % low quality coal Alternative fuels percentage: (all kilns, all types of clinker) Power consumption /Tonnage : (by crusher, all products) Power consumption/Tonnage: (by raw mill, all types of raw mix) Power consumption/Tonnage: (by kiln, all types of clinker) Power consumption /Tonnage: (by finish mill, all types of cement) Power consumption /Tonnage: (Finish grinding, all types of cement) Power consumption / T Solid fuels: (by coal mill, all types of solid fuel) Power consumption /Tonnage produced: (Up to clinker, all types of clinker) Power consumption /Tonnage produced :(Up to cement, all types of cement) Power consumption : (by crusher , all products) Power consumption : (by raw mill , all products) Power consumption : (by kiln , all types of clinker) Power consumption : (by Finish mill , all products) Power consumption : (Finish grinding, all products) Power consumption : (Fuel preparation, all products) Power consumption : (Up to clinker, all types of clinker) Power consumption : (Up to cement , all types of cement) C/K - Additive coefficient: (by product and/or all products) Quantity consumed of clinker : (all types of kk, all types of cement) Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PRODUCTION COST ( clinker costing) Average Unit Technical Cost: (all types of clinker) Maintenance expenses/t: (by type of clinker)

LMU/t LMU/t

KK001X KK015X

n LMU/t %

MA001X MA002X MA074X

n t t t % t t t t t t t t t t % h h h h h h n n t t h

PA007X PA012X PA014X PA015X PA018X PA019X PA021X PA022X PA023X PA026X PA028X PA035X PA040X PA042X PA044X PA045X PA087X PA088X PA089X PA091X PA093X PA096X PA098X PA104X PA111X PA133X PA121X

n n h h h h h/t h h % h

PE002X PE003X PE021X PE022X PE023X PE024X PE029X PE031X PE033X PE036X PE052X

n n n

PR002X PR003X PR004X

MAINTENANCE MCI - Maintenance cost index: (all types of cement) Maintenance reference cost Equipment Failure Rate Burning Line (by kiln, all products)

PRODUCTION ACTIVITY Number of Cement types Quantity produced: (by equipment, all types of Cement) Quantity produced : (all equipments , by type of Cement) Quantity produced (all types of Cement) Cement in bulk percentage : (all types of cement) Quantity produced: (by kiln, all types of Clinker) Quantity produced (all types of Clinker) Quantity produced : (all kilns, by type of Clinker) Quantity received: (all types of clinker) Quantity produced: (by raw mill, all types of raw mix) Quantity produced : (all types of Crushed products) Quantity shipped: (all types of clinker) Quantity shipped : (all types of cement, all types of shipments) Quantity shipped : (all types of cement in bags) Quantity shipped : (all types of cement in bulk) Cement in bags shipped percentage: (all types of cement) T- Available Opening hours t1 - Effective Operating time : (for kilns only, by product) t1 - Effective Operating time : (by equipment except kilns) t2 - Cumulated Hours of Shutdowns on Incidents : (by equipment) t4 - Circumstance downtime MTBF - Mean Time Between Failure: (by equipment) NSFI- Incident stoppages: (by Equipment) NSFI- Incident stoppages: (All kilns) Quantity produced: (by equipment, all types of Fuel prepared) Potential Production MTBF - Mean Time Between Failure: (all kilns)

PEOPLE Site headcount: (Internal population) (Average) Manufacturing population: (Average) Hours worked Cement Division activity: (Lafarge employees) Hours worked Cement: (all types of cement) Hours worked Clinker: (all types of clinker) Hours worked : (Finish Grinding, all types of cement) Manpower productivity Total overtime hours Total regular hours Overtime Hours worked : (Packing & shipping, all types of cement)

PERFORMANCE RATIO KFUI - Kiln feed uniformity index: (by kiln, by main type of clinker) KFUI - Kiln feed uniformity index: (all kilns, by main type of clinker) UI(SO3) - Clinker uniformity index: (by kiln, by main type of clinker) Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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UI(SO3) - Clinker uniformity index: (all kilns, by main type of clinker) s'(FCaO) - Clinker Free Lime standard deviation : (all kilns, by main type of clinker). FCaO - Free lime Uniformity Index : (by kiln, by main type of clinker). FCaO - Free Lime Uniformity Index : (all kilns, by main type of clinker). m(FCaO) - Clinker Free Lime average : (all kilns, by main type of clinker). Utilization factor: (by crusher) Utilization factor: (by Raw mill) Utilization factor: (by Solid fuel mill) Utilization factor: (by Kiln) Utilization factor: (by Finish mill) Operating time in automatic OTA: (by equipment) Automation Confidence Month :(by kiln) Reliability factor: (by crusher) Reliability factor: (by Raw mill) Reliability factor: (by Solid fuel mill) Reliability factor: (all Kilns) Reliability factor: (by Kiln) Reliability factor: (by Finish mill) Performance factor: (by Kiln) Rated Capacity: (by Kiln) Output: (by Kiln, all types of Clinker) Output: (by Finish mill, all types of product) Output: (by Solid fuel mill, all types of Solid fuel) Output: (by Raw mill, all types of Raw mix) Fineness: (by mill system, by product) Output : (Crushing, all types of crushed products) Automation Confidence Month : (by raw mill) Process Failure Rate Burning Line (by kiln, all products) Automation Confidence Month : (by Coal mill) Operating hours in Automatic : (by equipment)

n

PR005X

%

PR009X

%

PR010X

%

PR011X

%

PR013X

% % % % % % h % % % % % % % t/24h t/24h t/h t/h t/h FU t/h h % h h

PR015X PR017X PR019X PR021X PR023X PR028X PR030X PR033X PR035X PR037X PR038X PR039X PR041X PR048X PR050X PR053X PR057X PR061X PR063X PR069X PR073X PR074X PR102X PR103X PR105X

Mpa Mpa MPa %

QU004X QU009X QU014X QU026X

QUALITY 28 day strength: (by type of cement) 28 day strength uniformity (by type of cement) 28-day strength Uniformity "main types of cements" IQP (product quality indicator)

SAFETY Reference : Health & Safety Governance Standard – Incident Reporting and Investigation

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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New in 2009: INPUT file (Actual and Budget) 1) FUEL MIX section: Petcoke (like coal) was split in two categories - two entry lines - high/standard quality coal; see BRS definition CR229X - low quality coal; see BRS definition: CR230X 2) KILN section - Circumstantial stoppages - new entry line See BRS definition: PA093X - Potential Production - calculated indicator See BRS definition; Indicator used for the calculation of Reliability Factor: Plant level - Process indicators: KFUI, KSUI, FLUI - no more YTD calculation Please enter in the "MANUAL CUMUL ENTRY" the year-to-date value. 3) Environment - Direct CO2 emissions; tons of CO2 - clarification of an existing indicator EN004X - CO2 emissions - change of the calculation formula see BRS definition EN049X CO2 emissions : direct CO2 / (PA015X + PA021X - (PA015X / CR077X)) * 1000

REPORT file (Actual and Budget) 4) GENERAL section - Burning line Reliability Factor: new formula Consolidated via Potential Production 5) PRODUCTION AND PROCESS section - Process Failure rate: new formula Consolidated via Potential Production 6) MAINTENANCE section - Kiln Equipment failure rate: new formula Consolidated via Potential Production MMP database 7) Consolidated mills Utilisation Factor: new formula (raw and cement mills) Include mills with ZERO operation hours in a months (via YTD hourly output)

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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AC000X

LMU

Cost of power Cost/MWh P-Plant Total power expenses for cement in bin manufacturing. For plants with several main substations with distinct contracts, this definition applies separately to each main substation for the shops serviced (Example: Quarry with a dedicated substation). For plants generating their own power, resources used to produce this power should only appear once: - Either in the cost of MWh, but only if the resources used are completely known. In this case not only expenses but also related resources (hours, population, MJ, etc...) will be charged to MWh and not to clinker or cement. - Or in Fuel, labor, etc...for the production or clinker or cement. In such a case, the expense for this production of MWh is nil. In both cases, the Power expenses is calculated as: (Expense of MWh production+Purchase of MWh-Sale of MWh). Pierre Tonin

AC400X

LMU

Finish Grinding expenses : Finish Grinding

4- Finish Grinding

All expenses (60xxxx to 69xxxx) incurred in Finish grinding (CC 4xx). ref :Chart of accounts Tree Structure. AC401X +AC402X Pierre Tonin

AC761X

LMU

Heat expenses : (all types of fuel) Fuel

6 – Fuel preparation

Expenses of heat consumed all types of fuel during a given period. Pierre Tonin

AC762X

LMU

Up to Clinker expenses : (Up to Clinker) Up to clinker

K – Up to clinker

All expenses (60xxxx to 69xxxx) incurred up to Clinker. ref :Chart of accounts Tree Structure. Pierre Tonin

AR001X

LMU/Mwh

Average Specific Power Cost Cost/MWh

P-Plant

Total power expenses for cement in bin manufacturing divided by the corresponding quantity of MWh consumed during a given period. For plants with several main substations with distinct contracts, this definition applies separately to each main substation for the shops serviced (Example: Quarry with a dedicated substation). For plants generating their own power, resources used to produce this power should only appear once: - Either in the cost of MWh, but only if the resources used are completely known. In this case not only expenses but also related resources (hours, population, MJ, etc...) will be charged to MWh and not to clinker or cement. - Or in Fuel, labor, etc...for the production or clinker or cement. In such a case, the expense for this production of MWh is nil.

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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= Power expenses/Power consumed In both cases, the average cost of MWh used is calculated as : (Expense of MWh production+Purchase of MWh-Sale of MWh) / MWh used (CE008X divided by CR056X) multiplied by 1000 Benchmark with plants in the same economic group - all plants with similar economy based on labor costs. Pierre Tonin

AR407X

LMU/t

Expenses(Finish Grinding) / t cement 4-Finish Grinding All expenses incurred in Finish grinding stage (CC 4xx) divided by produced quantities of cement in bin during a given period. CE005X - (KK001X/CR077X) Pierre Tonin

AR607X

LMU/GJ

Average Specific Heat Cost Cost/GJ

P - Plant

The average specific heat cost or cost of fuel mix is the average heat expense of the different fuels used for clinker production, weighted by the % of heat consumed. For plants generating their own power, fuels already included in the power cost can not be taken into account. The costs of the in-house power plant should only appear once in the clinker production cost: either as fuel and fuel costs, or in the power cost. From 2006, this indicator will be also used for the calculation of the Alternative Fuels gross savings (see PR086X). = Sum (LMU/GJ * %) / 100 = Average heat expenses/GJ heat consumed (all types of clinker) Benchmark with plants in the same economic group - all plants with similar economy based on labor costs Pierre Tonin

CE005X

LMU/t

Average Unitary Technical Cost/t : (all types of cement) Cem Total

C-Up to Cement

Average Technical Unitary costs of each type of Cement, weighted by the quantity produced of each type of Cement during a given period. Excludes: head office overhead, sales, depreciation, financial expenses, inventory change adjustments and the impact of purchased clinker ,Cement silos costs. CE020X + CE019X + CE015X + CE010X + CE007X + CE008X + CE009X +CE021X the same economic group - all plants with similar economy based on labor cost

Benchmark with plants in

Pierre Tonin

CE007X

LMU/t

Combustibles expenses/t : (by type of cement) Cem Fuel

C-Up to Cement

Unitary Fuels Cost (Cost line 100) for Cement (by type of Cement). All fuels consumed in Cement preparation, regardless of their destination during a given period. For plants generating their own power, fuels included in the power generation cost are not to be taken into account. The costs of the in-house power plant should only appear once in the Cement cost: either in fuel consumption and fuel costs, or in the power cost. These expenses include the expenses of upstream products. Is calculated by: ((fuel expenses/t clinker) / add coeft ) + cost for cement additives drying or Costing cost line 100 for cement. Pierre Tonin Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CE008X

LMU/t

Power expenses/t : (by type of cement) Cem Power

C-Up to Cement

Unitary Power Cost (Cost line 110) for Cement (by type of Cement). All power consumed for Cement manufacturing during a given period. For plants generating their own power, power plant expenses should only appear once: either broken down under Fuel, Manpower, Supplies etc. or under Power. Is calculated by: (cost for KK / add coeft) + cost for grinding (KK004X divided by CR077X) + CR050X x AR001X Pierre Tonin

CE016X

LMU/t

Maintenance cost per tonne of cement produced Cem Maint

C-Up to Cement

Maintenance expenses (FI2009X) per tonne of cement (silo) produced, according to the costing methodology For CKHC and Management Reportings, the cascade is limited to clinker/cement (i.e. it does not take into account opening inventory and purchases of clinker) Refer to "Lafarge Cement Business Costing - Concepts & Methodology, V5" same economic group - all plants with similar economy based on labor cost

Benchmark with plants in the

Pierre Tonin

CE042X

LMU/t

Energy Cost per tonne of cement C-Up to Cement Fuels and Power costs per tonne of cement CE007X + CE008X

Benchmarked across the entire Cement Division

Pierre Tonin

CR002X

MJ/t

Specific Heat consumption : raw mix drying to clinker (Up to clinker, all types of clinker, all types of raw mix, all types of fuel) MJ raw mixes drying /t KK

K-Up to Clinker

Heat Consumption (Low Heat Value) for drying raw mixes (all types of raw mix) divided by produced tonnage of clinker (all types of clinker) during a given period. Does not include heat recovery and heat supplied by the waste gas of the kiln. Jacques Denizeau

CR003X

MJ/t

Specific Heat consumption : burning (all kilns, all types of clinker, all types of fuel) MJ/t Burn allKK

3-Burning

Heat Consumption (Low Heat Value) of all kilns, divided by produced tonnage of clinker (all types of clinker) during a given period. Includes useful heat value of the raw mix, but not that used for fuel preparation. Average of each "Specific Heat Consumption : kiln" (CR005X) weighted by the produced tonnage of clinker (all types of clinker). Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CR005X

MJ/t

Specific Heat consumption : kiln (by kiln, all types of clinker, all types of fuel) MJ/t kiln allKK

3-Burning

Heat Consumption (Low Heat Value) of a kiln, divided by produced tonnage of clinker (all types of clinker) during a given period. Includes 100% of low heat value of the raw mix, but not that used for fuel preparation Jacques Denizeau

CR014X

GJ

Heat consumption : raw mix drying (Raw mix preparation, all types of fuel) Raw mix drying

2 – Raw Mix Preparation

Heat Consumption (Low Heat Value) for drying raw mixes is the total heat consumed for drying the raw mixes, excluding heat of the waste gas of kiln. Does not include heat recovery. Jacques Denizeau

CR015X

GJ

Heat consumption : Total (All types of fuel) Total

P – Plant

Total heat Consumption (Low Heat Value) during a given period . Does not include heat recovery. Jacques Denizeau

GJ

CR017X Heat consumption : burning (all kilns, all types of clinker , all types of fuel) Burning

3- Burning

Heat Consumption (Low Heat Value) of all kilns is the total heat consumed for the whole clinker production (all types of clinker during a given period. Fuel preparation excluded Jacques Denizeau

CR019X

GJ

Heat consumption : kiln (by kiln, all types of clinker, all types of fuel) Heat cons. burning

3- Burning

Heat Consumption (Low Heat Value) of a kiln is the total heat consumed for the whole production of clinker (all types of clinker ) for a specific kiln during a given period Jacques Denizeau

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CR029X

%

% Standard/high quality coal % high quality coal

K-Up to Clinker

Standard/high quality coal MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Standard/high quality coal has a low heat value (LHV) above 22.5GJ/tonne (dry basis). High grade coal only. Includes Fuels for Raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker, but not cement additives drying. High grade coal only, whose low heat value is above 22.5GJ/tonne (dry basis). Includes Fuels for Raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker, but not cement additives drying. Sergiu Meauta

CR030X

%

Pet Coke percentage : (all kilns, all types of clinker) % Coke

K-Up to Clinker

All Pet coke types MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Includes Fuels for Raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker Sergiu Meauta

CR031X

%

Fuel oils percentage : (all kilns, all types of clinker) % Oil

K-Up to Clinker

All Fuel oils types MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Fuel oils type doesn't include light oil and high viscosity products. Includes Fuels for Raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker Sergiu Meauta

CR032X

%

High viscosity fuel percentage : (all kilns, all types of clinker) % HVF

K-Up to Clinker

All High viscosity fuel types MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Pitch, bottom products. Sergiu Meauta

CR033X

%

Natural gas percentage : (all kilns, all types of clinker) % Gas

K-Up to Clinker

All Natural gas types MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Includes Fuels for Raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker Sergiu Meauta

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CR034X

%

% low quality coal % low quality coal

K-Up to Clinker

Includes low quality coal used in clinker manufacturing, whose low heat value (LHV) is below 22.5 GJ/tonne (dry basis). The lower quality coal comprises all subbituminous coals, i.e., those that are more abundant than high quality: all types of lignites and also "schlamm/waste coal". "Schlamm", a by-product of coal production, sometimes stored in basins or in piles near the production sites, must be reported under this category. It includes fuels for raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker. All low quality coal MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Sergiu Meauta

CR035X

%

Alternative fuels percentage : (all kilns, all types of clinker) % altern

K-Up to Clinker

All alternative fuels types MJ (Low Heat Value) consumed (all kilns, all types of clinker) divided by Heat consumption (all kilns, all types of clinker). Alternative fuels are non fossile fuels which replace the fossile fuels (coal, petcoke, oil, HVF, gas) in the cement manufacturing process. They include: solvents, used oils, other hydrocarbons not fossile, tyres, solid schredded wastes, impregnated saw dust, animal meal, other biomass, other solids, sewage sludge and other. See attached file AF glossary. Includes Fuels for Raw mix drying, clinker burning, fuel preparation and other consumption chargeable to clinker Sum of indicators CR115X to CR125X Sergiu Meauta

CR037X

kWh/t

Power consumption /Tonnage : (by crusher, all products) kWh/t crushed products by crushers

1- Quarry

All Kwh consumed in a workshop (by crushing system) from upstream storage to downstream storage divided by the tonnage produced (by crushing system, all products). On a dry basis. Sergiu Meauta

CR040X

kWh/t

Power consumption/Tonnage : (by raw mill , all types of raw mix) kWh/t raw mill all raw mix

2-Raw mix preparation

All Kwhs consumed in a workshop (by raw mix mill, all types of raw mix) (from upstream storage to downstream storage) divided by the tonnage produced (by raw mix mill, all types of raw mix). On a dry basis. Sergiu Meauta

CR044X

kWh/t

Power consumption/Tonnage : (by kiln , all types of clinker) kWh/t Kiln all KK

3-Burning

All Kwhs consumed in a workshop (by kiln, all types of clinker) (from upstream storage to downstream storage) divided by the tonnage produced (by kiln, all types of clinker) . Sergiu Meauta Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CR048X

kWh/t

Power consumption /Tonnage : (by finish mill , all types of cement) kWh/t finish mill all Cem

4-Finish Grinding

All Kwhs consumed in a workshop (by finish mill, all types of cement) (from upstream storage to downstream storage) divided by the tonnage produced (by finish mill, all types of cement). Sergiu Meauta

CR050X

kWh/t

Power consumption /Tonnage : (Finish grinding, all types of cement) kWh/t all finish mills by Cem

4-Finish Grinding

All Kwhs consumed in a workshop (Finish grinding, all types of cement) (from upstream storage to downstream storage) divided by the tonnage produced (Finish grinding, all types of cement). Sergiu Meauta

CR051X

kWh/t

Power consumption / T Solid fuels : (by coal mill , all types of solid fuel) kWh / t all grinded solid fuels

6-Fuel preparation

All kWh consumed in a fuel preparation workshop (by coal mill, all types of solid fuel) (from upstream storage to downstream storage) divided by the sum of produced tons of all types of solid fuel. On a dry basis Sergiu Meauta

CR054X

kWh/t

Power consumption /Tonnage produced : (Up to clinker, all types of clinker) kWh/t all KK

K-Up to Clinker

All Kwhs that has been effectively consumed to produce one tonne of clinker, including the part of the quasi process and general services allocated to clinker (all types of clinker). Analyse trend of your plant Jacques Denizeau

CR056X

kWh/t

Power consumption /Tonnage produced :(Up to cement, all types of cement) kWh/t all Cem

C-Up to Cement

All Kwhs that has been effectively consumed to produce one tonne of cement, including the part of the quasi process and general services allocated to cement (all types of cement). Unit clinker power consumption (CR054X) divided by the additive coefficient (CR077X) plus unit grinding power consumption (CR050X). Analyse trend of your plant Jacques Denizeau

CR057X

MWh

Power consumption : (by crusher , all products) Kwh by Crusher all prdts

1 - Quarry

All Kwhs consumed (by crusher , all products). Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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MWh

CR060X Power consumption : (by raw mill , all products) Kwh by Raw mill all prdts

2 – Raw mix preparation

All Kwhs consumed (by raw mill , all products). Jacques Denizeau

MWh

CR064X Power consumption : (by kiln , all types of clinker) Kwh Kiln all KK

3 - Burning

All Kwhs consumed (by kiln , all types of clinker). Jacques Denizeau

CR068X

MWh

Power consumption : (by Finish mill , all products) Kwh by Finish mill all prdts

4 – Finish Grinding

All Kwhs consumed (by Finish mill , all products). Jacques Denizeau

CR070X

MWh

Power consumption : (Finish grinding, all products) Kwh by Finish grinding all prdts

4 – Finish Grinding

All Kwhs consumed (Finish grinding, all products). Jacques Denizeau

CR072X

MWh

Power consumption : (Fuel preparation, all products) Kwh Fuel prep all prdts

6 – Fuel Preparation

All Kwhs consumed (Fuel preparation, all products). Jacques Denizeau

CR074X

MWh

Power consumption : (Up to clinker, all types of clinker) Kwh Up to KK all KK

K – Up to clinker

All Kwhs consumed (Up to clinker, all types of clinker). Including the part of the quasi process and general services allocated to clinker. Jacques Denizeau

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CR076X

MWh

Power consumption : (Up to cement , all types of cement) Kwh Up to Cem all Cem

C-Up to Cement

All Kwhs consumed (Up to Cement in bin, all types of cement). Including the part of the quasi process and general services allocated to cement. Jacques Denizeau

CR077X

n

C/K - Additive coefficient : (by product and/or all products) C/K

P-Plant

Cement/clinker ratio: Tonnage of Cement produced, divided by the tonnage of clinker of any origin consumed. Slag and Cement Production Record Objectives: - Promote the approach that allows performance tracking in the plant - Reconcile the two reporting types: Technical (CKHC/MMP) and Financial (Control) General rules: - Former "Cement in bin" will be understood as "Cement in bin before packing and shipping". In this notion we will include mixing/blending operations. Blending operations are an extension of the grinding operations. Blender/mixer is part of the Grinding Shop. - Total Technical cost: indicator CE005X will include all the costs associated with the mixing/blending operations. - Other indicators. Ex: total power consumption: indicator CR056X will include the power, if any, related to mixing/blending. Same rule for other concerned position (ex: manpower) Consequences on slag/cement production record: • Slag ground with clinker in a cement plant enters in the C/K calculation. It represents the typical case. It includes: - Slag introduced in the cooler - Slag introduced in the finish mills NB: Please check on the ARM definition regarding the slag introduced in the kiln feed, kiln middle or at the kiln end. • Slag ground in a cement plant or in a grinding station and sold as pure slag (ex: Newcem) does not enter in the calculation of the C/K neither at the site level nor at BU level. The ground slag is reported in CKHC production for the respective finish mills. • Slag ground in a cement plant or in a grinding station and blended with cement in the same plant but after silage (ex: Maxcem) is included in the C/K ratio. The ground slag is reported in CKHC production for the respective finish mills. The cost for blending is part of "Cement in bin before packing and shipping". • Purchased ground slag blended with cement after silage but in the same plant is included in the C/K ratio. The purchased slag cost is included in the "Cement in bin before packing and shipping" cost. • Slag reground with cement in a regrinding station enters in the C/K calculation and in the "Cement in bin before packing and shipping" costs (including at BU level).

Kiln dust reintroduced in cement is counted as an additive and not as clinker. Clinker produced in the site or purchased by the site. Cement + cementitious material (excluded Special product, Lime) Benchmark with all plants

Sergiu Meauta

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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CR096X % Quantity consumed of clinker : (all types of clinker, all types of cement) All KK Consum

P - Plant

Tonnage of clinker (all types of clinker) consumed to produce cement (all types of cement) during the period. Clinker produced in the site or purchased by the site. Sergiu Meauta

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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KK001X

LMU/t

Average Unit Technical Cost : (all types of clinker) KKTotal

K-Up to Clinker

Weighted average unit cost of all clinkers produced in a site during a given period. Unit costs are computed according to Costing Methodology KK020X + KK019X + KK014X + KK007X + KK003X + KK004X + KK005X + KK021X the same economic group - all plants with similar economy based on labor cost

Benchmark with plants in

Pierre Tonin

KK015X LMU/t Maintenance expenses/t : (by type of clinker) KK Maint

K-Up to Clinker

Unitary Maintenance Cost (Cost lines 230, 240 and 250) for clinker (by type of clinker) during a given period. These expenses include all expenses for maintenance chargeable to clinker manufacturing. KK012X + KK013X + KK014X

Pierre Tonin

MA001X

n

MCI - Maintenance cost index : (all types of cement) Maint Cost Ind

P-Plant

Ratio of Maintenance Actual cost to Maintenance Reference cost for a plant. Only on a yearly basis. CE016X divided by MA002X Jean-Marc Albert

MA002X

LMU/t

Maintenance Reference cost per ton Ref

P-Plant

The maintenance Reference cost per ton is determined for each site on the basis of : target reference cost, type of process, ratio Raw mix/Clinker, ratio Cement/Clinker, technical particularities , plant capacity utilization, local economic conditions. The maintenance Reference cost per ton is the theoritical cost calculated for cement in bin (from Quarry to Finish Grinding process steps including cement storage and excluding Packaging and Shipping Costs). This Value is computed for each plant by DPC on yearly basis. Technical particularities are calculated by plant and Technical Center then validated by DPC. Jean-Marc Albert

MA074X

%

Equipment Failure Rate Burning Line (by kiln, all products) EFRB

3-Burning

For a given kiln, during a given period: Sum of stoppage hours caused by Equipment failure * 100 divided by (Effective operating time + Sum of Hours of shutdowns on incidents) For this indicator the "upstream concept" applies 1 - EFRB and PFRB (Process failure rate burning line) are related to Burning Line Reliability Factor as follows: RF (Kiln) = 100 - EFRB - PFRB Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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2 - EFRB measures the technological status of burning line through equipment incidents. It indicates if specific maintenance actions are necessary to improve overall reliability and actions from the past have been successful. 3 - There are 4 main impacts: · Loss of clinker production : especially for sold out plants this has an important economical impact · Each stoppage (short or long) causes quality fluctuation · Start up after a long stoppage has a significant cost · During stoppage and start up phases equipment are stressed, suffered cumulative fatigue that could lead to major failure. t2(equipment)

PA090X (equipment)

EFRB = ------------------- * 100 = ---------------------------- * 100 t1 + t2

PA088X + PA090X

t2(equipment): Equipment related incident stoppage duration: Each relevant incident which is caused by mechanical, electrical, instrumentation and civil work problem. Stoppage: An incident is counted as stoppage of the burning line if the kiln feed is stopped. Kiln Line: According to Lafarge Codification, the kiln line includes all equipment of burning line i, code 3i. The upstream concept requires that stoppages by equipment incidents of the raw mill, which result in a stoppage of the burning line, have to be included. Jean-Marc Albert

PA007X

n

Number of Cement types Nb Prod

C-Up to Cement

Number of marketable types of Cement produced during the given period. Cement + cementitious material (excluded Special product, Lime, Clinker) Information only Sergiu Meauta

PA012X

t

Quantity produced : (by equipment, all types of Cement) ProdCem by equip all Cem

4-Finish Grinding;C-Up to Cement

Tonnage produced of cement (by equipment, all types of cement) during a given period. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Sergiu Meauta

PA014X

t

Quantity produced : (all equipments , by type of Cement) ProdCem all equip by Cem

4-Finish Grinding;C-Up to Cement

Tonnage produced of cement (all equipments, by type of cement) during a given period. Sergiu Meauta

PA015X

t

Quantity produced (all types of Cement) ProdCem all equip all Cem

4-Finish Grinding;C-Up to Cement

Tonnage produced of cement (all equipments, all types of cement) during a given period. Cement + cementitious material (excluded Special product, Lime, Clinker) Information only Sergiu Meauta Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PA018X

%

Cement in bulk percentage : (all types of cement) PurchCem all Cem

5 – Packing and shipping

Tonnage produced of cement in Bulk (all types of Cement) divided by tonnage produced of Cement (all types of Cement) in bulk and bagged during a given period. Sergiu Meauta

PA019X

t

Quantity produced : (by kiln, all types of Clinker) ProdKK by equip all KK

3-Burning;K-Up to Clinker

Tonnage produced of clinker (by kiln, all types of clinker) (at cooler(s) outlets) during a given period. (Upstream dust, especially dust from grate exchangers when reintroduced is counted as an additive). Sergiu Meauta

PA021X

t

Quantity produced (all types of Clinker) ProdKK all equip all KK

3-Burning;K-Up to Clinker

Tonnage produced of clinker (all kilns, all types of clinker ) (at cooler(s) outlets) during a given period. (Upstream dust, especially dust from grate exchangers when reintroduced is counted as an additive). Information only Sergiu Meauta

PA022X

t

Quantity produced : (all kilns, by type of Clinker) ProdKK all equip all KK

3-Burning;K-Up to Clinker

Tonnage produced of clinker (all kilns, by type of clinker ) (at cooler(s) outlets) during a given period. (Upstream dust, especially dust from grate exchangers when reintroduced is counted as an additive). Sergiu Meauta

PA023X

t

Quantity received : (all types of clinker) RecievedKK all KK

4-Finish Grinding

Tonnage received of clinker (all types of clinker) during a given period. For example : Clinker acquired outside the site. Sergiu Meauta

PA026X

t

Quantity produced : (by raw mill, all types of raw mix) ProdRM by equip all RM

2-Raw mix preparation

Tonnage produced of raw mix (by raw mill, all types of raw mix) during a given period. On a dry basis. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Sergiu Meauta

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PA028X

t

Quantity produced : (all types of Crushed products) ProdQC by equip all pdts

1 - Quarry

Tonnage produced of Crushed products(all types) (Ending quarry) during a given period (e.g. prehomo outlet). On a dry basis. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Sergiu Meauta

PA035X

t

Quantity shipped : (all types of clinker) KK ship

5-Packing and Shipping

Tonnage shipped of clinker (all types of clinker) during a given period. Sergiu Meauta

PA040X

t

Quantity shipped : (all types of cement, all types of shipments) Cem shipped

5-Packing and Shipping

Tonnage shipped of cement (all types of cement, all types of shipments) during a given period. Sergiu Meauta

PA042X

t

Quantity shipped : (all types of cement in bags) Cem bags shipped

5-Packing and Shipping

Tonnage shipped of cement in bags (all types of cement) (including big bags) during the given period. Sergiu Meauta

PA044X

t

Quantity shipped : (all types of cement in bulk) Cem bulk shipped

5-Packing and Shipping

Tonnage shipped in bulk (all types of cement) during a given period. Sergiu Meauta

PA045X

%

Cement in bags shipped percentage : (all types of cement) % Cem bags shipped

5-Packing and Shipping

Tonnage shipped of Cement in bags (all types of cement) (including Big Bags) divided by total tonnage of Cement shipped (all types of cement) during a given period. Sergiu Meauta

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PA087X

h

T- Available Opening hours All the hour of the given period except for Quarry and shipping :(local conditions) number of hours : month (31 days) 31X24 = 744 hours. Monthly duration could be 745 when daylight saving time is added (or removed). Year (365 days) 365X24 = 8760 hours. T = t1 + t2 + t3 + t4 + t5

Sergiu Meauta

PA088X

h

t1 - Effective Operating time : (for kilns only, by product) t1- kiln Hours of operation for kilns during a given period: hours of kiln feeding (by product). Sergiu Meauta

PA089X

h

t1 - Effective Operating time : (by equipment except kilns) t1-equip Hours of operation for an equipment during a given period: hours of rotation of the main motor (by product). Sergiu Meauta

PA091X

h

t2 - CHSI - Cumulated Hours of Shutdowns on Incidents : (by equipment) CHSI Cumulated Hours of shutdowns on incidents for a given equipment during the given period = Opening hours minus Effective Operating time minus Scheduled downtime minus Circumstance downtime (all products). Defined as unschedulded stoppages due to electrical, mechanical, production, process,etc.Events on which the site can impact. Jacques Denizeau

PA091X

h

t4 - Circumstance downtime Circumstantial Stoppages due to external factors such as strikes, market (full inventories), etc. Events on which the site has no or limited control (all products). Stoppages due to external factors such as strikes, market (full inventories), etc. Events on which the site has no or limited control (all products). Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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Downtime hours resulting from climatic conditions (rainfalls, wind, cold temperature…) should normally be recorded as Incident Stoppage Hours. For exceptional cases of freezing, flooding conditions, etc., the decision as to whether the downtime is an incident or a circumstance would have to be determined on a case by case basis. IMPACT OF AN INCIDENT FROM ONE SYSTEM TO ANOTHER: Hot clinker from the kiln has be diverted to the hot bin via an equipment which is part of the mill system. Therefore, the mill has to be stopped to allow the operation fo such equipment a necessary. The mill was able to run, but the shift foreman decided to divert the production to keep the kiln in operation. Mill downtime is counted as Circumstance Stoppage. POWER DOWNTIME 1) Power contract - If the power contract is such that a piece of equipment has to be down for a certain period of time during the day or during the year, there are two possibilities in case of Stoppages: a) no work is performed on the equipment (yard, maintenance. . . ), the downtime is a Circumstance type. b) the stoppage is used to perform some work, then it becomes Scheduled or Incident downtime depending on the degree of Scheduling. Most of the time it should be considered as Scheduled. 2) Electrical equipment belonging to the Power Company If a power stoppage happens on an equipment which belongs to the Power Company, the downtime should be considered as a Circumstance. Ex: Power Company’s sub-station tripped out due to storm. (Plant has no control of this). 3) Electrical equipment belonging to the plant A power stoppage occurs on a piece of equipment which belongs to the plant. It is an Incident stoppage. If, however, the failure is due to an “Act of God”, over which the plant has no control, or is not expected to have protection from, it is a Circumstance. Note: Each plant must develop a list of circumstances which would apply here. 4) Plant generates its own electricity When the incident on the power generator causes the shutdown of another equipment, this downtime is Circumstance Stoppage. The plant could have avoided the situation by purchasing electricity for production. However in the case of an incident on a piece of equipment due to a switch from plant power station to the local electricity distributor, the event would be considered as an Incident stoppage. Circumstance stoppage hours can be either scheduled or not. Examples: - Scheduled situation: At budget time, sales are forecasted to be low, allowing the kiln to be kept down for an extended period of time. Budgeted scheduled downtime should cover the time required to perform the work under normal conditions. If conditions allow to stretch the duration of downtime by using less overtime, etc., then the additional time is considered as Circumstance stoppage hours. - Unscheduled situation: The power company is on strike. - Scheduled or unscheduled situation: When the homo silo is full, the raw mill downtime is considered Circumstance. Jacques Denizeau

PA096X

h

MTBF - Mean Time Between Failure : (by equipment) MTBF

1-Quarry;2-Raw mix preparation;3-Burning;4-Finish Grinding

Effective operating time divided by the total number of shutdowns for incidents. If there is no shutdown for incident MTBF is equal to effective operating time. For a kiln, PA096X = PA088X / PA098X For another equipment PA096X = PA089X / PA098X Jean-Marc Albert

PA098X

n

NSFI- Incident stoppages : (by Equipment) NSFI

1-Quarry;2-Raw mix preparation;3-Burning;4-Finish Grinding

Total number of stoppages for incident during the given period, whatever each stoppage duration. Jacques Denizeau

PA104X

n

NSFI- Incident stoppages : (All kilns) NSFI

3-Burning

Aggregate of the 'NSFI' of each kiln (PA098X) In case of several burning lines, NSFI = Maximum (NSFIx for UFx >= 60%) if no line has an Utilization Factor >= 60% then NSFI = NSFI of the line with the highest UF. In case of one burning line, this is the NSFI of this line. Jacques Denizeau

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PA111X

t

Quantity produced : (by equipment,all types of Fuel prepared) ProdFuelprep by equip all pdts

6-Fuel preparation

Tonnage produced of Fuel prepared (by equipment, all types of fuel prepared) during a given period. Sergiu Meauta

PA133X

t

Potential Production Pot prod

3-Burning

Tonnage of clinker (all kilns, all type of clinker) during a given period that could be produced with a perfect Reliability Factor. It is defined as the ratio between the actual clinker production divided by the actual reliability factor. Note: On monthly level, in the possible case that the kiln reliability factor (PR039X) is zero then the Potential Production is calculated: PR050X * PA091X * 0.97 Site level: PA021X / PR038X Kiln level: PA019X / PR039X Sergiu Meauta

PA121X

h

MTBF - Mean Time Between Failure : (all kilns) MTBF

3-Burning

Aggregate of the 'MTBF' of each kiln (PA096X) according to the above formula In case of several burning lines, MTBF = Minimum (MTBFx for UFx>=60%) if no line has an Utilisation Factor >=60%, then MTBF = MTBF of the line with the highest UF. In case of one burning line, this is the MTBF of this line. Jean-Marc Albert

PE002X

n

Site headcount : (Internal population) (Average) Total Internal Pop

P-Plant

Average of site population (including shipping), for all categories of personnel. but excluding manpower under outside contracts. Includes Site general services, but does not include services usually located in a regional or head office. Plants hosting head or regional office staff must exclude them in the calculation. PE005X+PE004X+PE006X Jim Black

PE003X

n

Manufacturing population : (Average) Mfg. pop.

P-Plant

Average of population for cement in bin manufacturing (all types of cement), for all categories of personnel. excluding shipping personnel as well as the equivalent population for the maintenance of shipping and manpower under outside contracts. PE005X+PE004X Benchmark with all plants Jim Black Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PE021X

h

Hours worked Cement Division activity : (Lafarge employees) P-Plant Total worked hours on company authorised activites in the Cement Division activity. Includes overtime hours paid, normal working hours on the job, balance of banked overtime hours to be recuperated, shower, changing room time, professional training and coffee break and other. Excludes Personnel representation, paid vacation, days off, bank holidays, Maternity leave, sick leave. Cement Division Activity includes Building Materials Activity and Non Building Materials Activity. Lafarge employees : any person directly employed by a Lafarge company, including casuals (people employed from the street directly by site irregularly, on daily or weekly basis, agency staff, temporary employees, trainees, seamen & drivers. Jim Black

PE023X

h

Hours worked Clinker : (all types of clinker) h KK

P-Plant

Hours worked, overtime included, during a given period for clinker manufacturing, in Production, Maintenance and part of the hours of General Services, for all categories of personnel, but excluding manpower under outside contracts. Jim Black

PE024X

h

Hours worked : (Finish Grinding, all types of cement) Hours worked cement

P-Plant

Hours worked, overtime included, during a given period at the Finish grinding Process step in Production, Maintenance and part of the hours of General Services, for all categories of personnel, but excluding manpower under outside contracts. Jim Black

PE029X

h/t

Manpower productivity h/t Cem

P-Plant

Total hours worked Cement divided by the quantity produced of cement (all types of cement) during a given period. Expressed in h/t calculated using the ratio method for cement in bin. PE022X divided by PA015X Analyse trend of your plant Jim Black

PE031X

h

Overtime hours Overtime

P-Plant

Number of hours in excess of the theoretical hours.The theoretical hours are the translation of the hours on contract for a given period (a day, a week, a calendar month, etc.). For example, the theoretical hours of each month for an individual depend on the actual number of days of the month, the number of week-ends, the shift organization, etc... Jim Black

Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PE033X

h

Payed hours Payed

P-Plant

Paid hours are the hours on contract plus overtime (at one's post or not) minus non-paid absence. Hours on contract are the monthly hours used as a basis for the employement contract. For example, in France 169,58 hours are the regular monthly hours on contract which correspond to the legal 39 hours a week, 84,79 hours are the corresponding hours on contract for a half time employee, etc.. Jim Black

PE036X

%

Overtime % OT

P-Plant

Total overtime hours divided by total normal hours multiplied by 100 For all categories of personnel including staff and management. Jim Black

PE052X

h

Hours worked : (Packing & shipping, all types of cement) Hours worked P&S

P-Plant

Hours worked, overtime included, during a given period at the Packing and Shipping Process step in Production, Maintenance and part of the hours of General Services, for all categories of personnel, but excluding manpower under outside contracts. PE021X - PE022X - PE023X Jim Black

PR002X

n

KFUI - Kiln feed uniformity index : (by kiln, by main type of clinker) KFUI(C3S)

3-Burning

Calculated on C3S by: Sum [(Ii-Ic)(Ii-Ic)] / number of measurements; (by kiln, by type of clinker). On all samples taken during a given period (month or year). li = C3S measured on daily grab sample (mix of 3 samples taken within 5 minutes) at kiln feed, for the raw mix corresponding to the clinker. Ic = C3S target (set point). This indicator is calculated only for the main type of clinker. Jacques Denizeau

PR003X

n

KFUI - Kiln feed uniformity index : (all kilns, by main type of clinker) KFUI(C3S)

3-Burning

Average of [PR002X] "Kiln feed uniformity index, KFUI (by kiln, by main type of clinker)" weighted by [PA020X] "Quantity produced (by kiln, by main type of clinker)". Jacques Denizeau

PR004X

n

UI(SO3) - Clinker uniformity index : (by kiln, by main type of clinker) U SO3

3-Burning

UI(SO3) = 100 x sigma (SO3 KK) / (1 + average (SO3 KK) On all samples taken during a given period (month or year). Sometimes called KSUI. Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PR005X

n

UI(SO3) - Clinker uniformity index : (all kilns, by main type of clinker) UI(SO3)

3-Burning

Average of [PR004X] "Clinker Uniformity UI(SO3) (by kiln, by main type of clinker)" weighted by [PA020X] "Quantity produced (by kiln, by main type of clinker)". Jacques Denizeau

PR009X

%

s'(FCaO) - Clinker Free Lime standard deviation : (all kilns, by main type of clinker). U f CaO KK

3-Burning

Average of [PR008X] "Clinker Free Lime standard deviation (by kiln, by main type of linker)" weighted by [PA020X] "Quantity produced (by kiln, by main type of clinker)". Jacques Denizeau

PR010X

%

FCaO - Free lime Uniformity Index : (by kiln, by main type of clinker). Free Lime

3-Burning

s'(Free Lime) divided by (0,2 * Mean (Free Lime) +0,1) during a given period. The free lime uniformity index is the main indicator to characterise the stability of the burning conditions. We assume, that under very stable burning conditions the SD of the free lime is not more than 20% of the absolute value (Coefficient of Variation < 20 %) - in this case a kiln is class A. The term "+0.1" in the calculation stands for the accuracy of the free lime analysis. Otherwise we would calculate completely meaningless values for very low absolute free lime figures. Of course this figure is more meaningfull, if the free-lime is a good measure of the burning conditions (what is not the case for some of our kilns - mainly some of our long kilns). Therefore, this indicator has to be seen in connection with the absolute amount of the free lime. Jacques Denizeau

PR011X

%

FCaO - Free Lime Uniformity Index : (all kilns, by main type of clinker). FLUI

3-Burning

Average of [PR010X] "Free Lime Uniformity Index, FLUI (by kiln, by main type of clinker)" weighted by [PA020X] "Quantity produced (by kiln, by main type of clinker)". Jacques Denizeau

PR013X

%

m(FCaO) - Clinker Free Lime average : (all kilns, by main type of clinker). % f CaO KK

3-Burning

Average of [PR012X] "Clinker Free Lime average (by kiln, by main type of clinker)" weighted by [PA020X] "Quantity produced (by kiln, by main type of clinker)". Jacques Denizeau

PR015X

%

Utilization factor : (by Crusher) Utilisation factor by crusher

1 - Quarry

For a given equipment, Effective Operating time divided by available opening hours. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Generally calculated with the LUCIE Expert system. Sergiu Meauta Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PR017X

%

Utilization factor : (by Raw mill) Raw Mill UF

2-Raw mix preparation

For a given raw mill, Effective Operating time divided by available opening hours. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Generally calculated with the LUCIE Expert system. Jacques Denizeau

PR019X

%

Utilization factor : (by Solid fuel mill) Fuel Mill UF

6-Fuel preparation

For a given solid fuel mill, Effective Operating time divided by available opening hours. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Generally calculated with the LUCIE Expert system. Jacques Denizeau

PR021X

%

Utilization factor : (by Kiln) Kiln UF

3-Burning

For a given Kiln, Effective Operating time divided by available opening hours. Sergiu Meauta

PR023X

%

Utilization factor : (by Finish mill) Finish Mill UF

4-Finish Grinding

For a given Finish mill, Effective Operating time divided by available opening hours. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Generally calculated with the LUCIE Expert system. Jacques Denizeau

PR028X

%

Operating time in automatic OTA : (by equipment) % auto by equip

2-Raw mix preparation;3-Burning;4-Finish Grinding;6-Fuel preparation

The Effective operating time on automatic control (Lucie) during a given period divided by the Effective operating time during the same period multiplied by 100 (by equipment). Only applicable to equipment automated by the Lucie automation software. For the CKHC report equipment having an OTA lower than 15 % is considered as not automated, the value will not be taken in consideration. Jacques Denizeau

PR030X

h

Automation Confidence Month :(by kiln) Conf Kilns

3-Burning

For a given month, the longest continuous operation of the kiln on automatic without manual intervention.

The value is not calculated If a kiln operates less than 10 days during a given month. Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PR033X

%

Reliability factor : (by crusher) Reliability factor by crusher

1 - Quarry

Effective operating time divided by ("Effective operating time" + "Production stoppages on incidents") during a given period. For a given period, if there is no schedulded and no circumstance hours :Reliability factor = Utilization factor. Jacques Denizeau

PR035X

%

Reliability factor : (by Raw mill) Raw mill RF

2-Raw mix preparation

For a given Raw mill, "Effective operating time" divided by ("Effective operating time" + "Production stoppages on incidents") during a given period. For a given period, if there is no schedulded and no circumstance hours :Reliability factor = Utilization factor. Jacques Denizeau

PR037X

%

Reliability factor : (by Solid fuel mill) Solid fuel mill RF

6-Fuel preparation

For a given Solid fuel mill, "Effective operating time (in hours)" divided by ("Effective operating time (in hours)" + "hours of "Stoppages on incidents ") during a given period. For a given period, if there is no schedulded and no circumstance hours :Reliability factor = Utilization factor. Jacques Denizeau

PR038X

%

Reliability factor : (all Kilns) Kilns RF

3-Burning

Average, weighted by the "potential production", of the reliability factor of each kiln (PR039X). Jacques Denizeau

PR039X

%

Reliability factor : (by Kiln) Kiln RF

3-Burning

For a given Kiln, "Effective operating time" divided by ("Effective operating time" + "Production stoppages hours on incidents") during a given period. For a given period, if there is no schedulded and no circumstance hours :Reliability factor = Utilization factor. For a Kiln, a stoppage is schedulded during preparation of the budget. If the schedulded stoppage is moved up more than 15 days, the first 5 days are considered as incidents. If stoppage is lengthened for technical reasons, the excess duration is considered as an incident. No more than two scheduled shutdowns can be planned per year. an incident on the raw mill which result in a stoppage of the kiln line is included in the RF burning line calculation. Jacques Denizeau

PR041X

%

Reliability factor : (by Finish mill) Finish mill RF

4-Finish Grinding

For a given Finish mill, "Effective operating time" divided by ("Effective operating time" + "Production stoppages on incidents") during a given period. For a given period, if there is no schedulded and no circumstance hours :Reliability factor = Utilization factor. Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PR048X

%

Performance factor : (by Kiln) PF Kiln

3-Burning

Output (by kiln) of clinker the most produced during a given period divided by the "Rated Capacity" of the kiln. The Reference Performance factor value is provided by the DPC: PR054X divided by PR050X Jacques Denizeau

PR050X

t/24h

Rated Capacity : (by Kiln) Rated kiln

3-Burning

Best historical Production (recorded on the main product type) during 7 consecutive days divided by 7, In case of major and permanent modification in operating conditions, the rated capacity may be reduced from the previous year value. Requests for decreasing the rated capacity must follow a specific procedure and revised value must be approved by DPC. Supplier's guarantee during start-up. A new production record set during a year will not come into effect until the following year. Jacques Denizeau

PR053X

t/24h

Output : (by Kiln, all types of Clinker) All KK output 24 by kiln

3-Burning

Quantity produced of all types of Clinker (t of clinker cooler exit) divided by the "Effective operating time" (hours of Kiln feeding) to produce all types of clinker for a given period multiplied by 24. Jacques Denizeau

PR057X

t/h

Output : (by Finish mill, all types of product) Finish mill Output

4-Finish Grinding

Quantity produced of all types of product divided by Effective operating hours to produce all types of product for a given period. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. Jacques Denizeau

PR061X

t/h

Output : (by Solid fuel mill, all types of Solid fuel) All Solid fuels output

6-Fuel preparation

Quantity produced on a dry basis of all types of Solid fuel divided by the total operating hours for a given period. Jacques Denizeau

PR063X

t/h

Output : (by Raw mill, all types of Raw mix) Outp Raw

2-Raw mix preparation

Quantity produced on a dry basis of all types of Raw mix divided by the total operating hours for a given period. Not separable equipments (example : press plus ball mill) are accounted as a single equipment. PA026X(all types of raw mix) divided by PA089X(by equipment). Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PR069X

FU

Fineness : (by mill system, by product) 2-Raw mix preparation;4-Finish Grinding Average on the given period of Fineness measurment. (Specify the Fineness unit). It should be: - for cement: Specific Surface Blaine in m2/kg - for raw mix: retained on screen of 90 µm or 100 µm (or equivalent in mesh (ASTM series)). Jacques Denizeau

PR073X

t/h

Output : (Crushing, all types of crushed products) Crush output

1-Quarry

Sum of Output (By crusher, all types of Crushed products) for a given period. Sergiu Meauta

PR074X

h

Automation Confidence Month : (by raw mill) Confidence raw mill

2 – Raw mix preparation

For a given month, the longest continuous operation of the raw mill on automatic without manual intervention. The value is not calculated If the raw mill operates less than 10 days during a given month. Jacques Denizeau

PR102X

%

Process Failure Rate Burning Line (by kiln, all products) PFRB

3-Burning

For a given kiln during a given period: Sum of stoppage hours caused by Process failure * 100 divided by (Effective operating time + Sum of Hours of shutdowns on incidents) For this indicator the "upstream concept" applies The burning line reliability is linked with the PFRB and the EFRB (Equipment failure rate Burning Line) as follows: RF(kiln) = 100 - PFRB - EFRB Explanation: A poorly mastered process very often causes stoppages of the kiln line. This indicator allows measurement of the influence of the process on the overall reliability of a kiln line and is a basis for corrective actions. Over time it also shows the success of previous corrective actions. There are three main economic impacts for this indicator: 1) Loss of clinker production has an important economic impact especially for sold out plants 2) Each stoppage reduces the refractory life, stresses all mechanical equipment and increases heat consumption because of heating up the system. Even if these influences are not so easy to measure, they have an important economic impact. 3) Each stoppage causes quality fluctuations t2 (process)

PA090X (process)

PFRB = ------------------ * 100 = ---------------------------- * 100 t1 + t2

PA088X + PA090X

t2 (process) : Process related incident: Each relevant incident which is caused by a not fully mastered process. Kiln line: According to Lafarge Codification, the Kiln Line includes all equipment of burning line i, Code 3i. The upstream concept requires that stoppages by process incidents of the raw mill, which result in a stoppage of the kiln line, have to be included. Jacques Denizeau Copyright 2007-2009 Lafarge SA – DPC/ Confidential

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PR103X

h

Automation Confidence Month : (by Coal mill) Conf. coal mill

6-Fuel Preparation

For a given month, the longest continuous operation of the coal mill on automatic without manual intervention. The value is not calculated If a coal mill operates less than 10 days during a given month. Jacques Denizeau

PR105X

h

Operating hours in Automatic : (by equipment) Auto

P - Plant

Operating hours in automatic (by equipment) Jacques Denizeau

QU004X

MPa

28 day strength: (by type of cement) 28d str

C – Up to cement

Cement strength on mortar after 28 days determined following the local Standards (by type of cement). Grab sample taken at least once or twice per week depending on requirements of local standards. Grab sample to be taken from shipping load point, except if another method is proved to give the same result, and consist of either one whole product bag, or a composite of 3 grab samples over a 5 minute period. Total sample weight to be more than 3 kg. Yves Guitton-Fumet

QU009X

MPa

28 day strength uniformity (by type of cement) 28d SU

C – Up to cement

Standard deviation is calculated on the value of all 28 day strengths (by type of cement) corresponding to the 12 months considered. If the strength target changes during the year (agreed by management only), then a new data population must be started. Weight each data population, if applicable, by the number of samples within the 12 month period. Yves Guitton-Fumet

QU014X

MPa

28-day strength Uniformity "main types of cements" P-Plant 28 day strength uniformity of main products calculated as the Standard Deviation of mortar strengths for 12 months for the "main types of Cements". Grab sample taken at least once or twice per week depending on local standard requirements. Grab sample to be taken from shipping loading point, except if another method is proved to give the same result, and consists of either one whole bag, or a composite of three(3) grab samples over a five(5) minute period. Total sample weight to be more than 3kg. If the strength target changes during the year (agreed by management only), then a new data population must be started. Weight each data population, if applicable, by the number of samples within the 12 month period. Note: the former exclusion and/or limitation of blended products is removed from the definition. Main types of cements are defined as the largest cement shipment then the second largest cement shipment and so on until at least 50% of the total cement shipment, during the 12 month period, is considered. Yves Guitton-Fumet

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QU026X

%

IQP (product quality indicator) IQP

P-Plant

The IQP measures the percentage of time results for up to 5 quality parameters selected for each product produced by the plant, are at or within set upper and/or lower limit(s). The IQP (Indicateur Qualité Produit or Product Quality Indicator) is an indicator of product quality, as agreed between marketing & sales and manufacturing staff, based on customer requirements for all product(s) produced at a plant.

The indicator measures the percentage of time results for up to 5 quality parameters selected for each product produced by the plant, are at or within set upper and/ or lower limit(s). Parameters selected should reflect the performance characteristics desired by the main customers using each product e.g. cement physical, chemical or paste, mortar, micro-concrete or concrete test results. The upper and/or lower limit(s) for all parameters of each product are jointly set by manufacturing & marketing personnel based on market requirements and plant capabilities. The limit(s) are set, such that an IQP of 100 should result in zero customer complaints attributed to cement quality. For reporting purposes, the IQP will be a single number calculated for each plant based on results obtained during a calendar year. A plant can be a cement plant, or a grinding facility (cement or slag) Yves Guitton-Fumet

4.0

Definitions

4.1

Incident Category

4.1.1 Fatal Injury (FI) – is a work-related injury that results in a loss of life, with no time limit between the date of the incident and the date of the death. Excluded in all cases are all fatalities in transport to and from home and work, criminal acts, and natural causes. FI Example 1 – Two sales representative are driving a vehicle to visit a customer for a work meeting. The sales representative’s vehicle is struck by a second vehicle that ran a stop sign. Both sales representatives die from complications related to the accident. This counts as two fatal injuries. FI Example 2 – an electrical contractor sustains severe burns to his body while working in the plant. Two months later the electrician dies as a result of a systemic infection related to the burn. This counts as one fatal injury.

4.1.2 Lost Time Injury (LTI) – is a work-related injury causing absence from one or more scheduled workdays (or scheduled shifts), counting from the day after the injury occurs to the day before the individual returns to normal or modified work. LTI Example 1 – an office administrative assistant falls and sustains a fracture to her arm on Monday. The medical clinic immobilizes her arm with a cast and instructs the administrative assistant to stay home until Wednesday and will be required to wear the arm cast for six weeks. The employee misses one day of work and has limited use of her arm for six weeks. LTI Example 2 – a QC technician falls off a ladder while collecting a sample and strains his shoulder. The technician returns to work the next day on modified duty (i.e. a medical injury). Two months later, the doctor determines the shoulder requires surgery to repair the injury. The technician is required to be absent from work for two weeks to properly recover from surgery (i.e. this injury is reclassified from a medical injury to a LTI with 14 lost work days). LTI Example 3 – an auditor is traveling from the office to the plant for a meeting. His vehicle is struck by an oncoming truck. He sustains a fractured wrist and is required to miss two weeks from work (i.e. this injury is a LTI with 14 lost work days).

4.1.3 Medical Injury (MI) – is a non-lost time work-related injury that requires treatment by a trained health care professional (nurse, doctor, physiotherapist, etc). Treatment does not include first aid (as defined in 4.1.4) even if it is provided by a trained health care professional. 4.1.4 First Aid Injury (FA) – is a non-lost time work-related injury that requires one-time treatment of minor scratches, cuts, burns, splinters and so forth, but does not ordinarily require medical care by a trained health care professional. Such treatment and observation are considered first-aid even though provided by a trained health care professional. First aid includes: ⇒ ⇒ ⇒ ⇒ ⇒

Administration of tetanus immunizations Cleaning, flushing, or soaking wounds on the skin surface Use of wound coverings, e.g., gauze pads, BandAids™, or SteriStrips™ Use of hot or cold therapy Use of eye patches

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⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ .

Use of any non-rigid means of support, e.g., wraps Drinking of fluids to relieve heat stress Use of temporary immobilization devices while transporting an accident victim , e.g., splints, neck collars, or backboards Use of X-Rays Drilling of fingernails or toenails to relieve pressure, or draining fluids from blisters Use of simple irrigation or cotton swab to remove foreign bodies not embedded in or adhered to the eye Use of irrigation, tweezers, cotton swabs, or other simple means to remove splinters or foreign material from areas other than the eye Use of finger guards Use of massages Use of non-prescription medications at non-prescription strength

4.1.5 Near-Miss Incident (NM) – is a work-related incident that did not result in an injury but could have resulted in an injury under different circumstances. NM Example 1 – a crane operator raises the crane boom and it almost contacts an energized power line. NM Example 2 – a work crew is preparing to enter a newly excavated trench to perform work. The trench wall collapses before crew enters the trench.

4.1.6

Total Lafarge Employee Hours Worked – refers to actual hours worked (refer to 4.2.1).

4.1.7

Lost Work Days (LWD) – refers to calendar days. LWD Example 1 – an equipment operator is injured on a Friday. The doctor instructs the operator not return to his job until the following Tuesday. Because the operator was absent from his next scheduled workday (i.e. Monday), the injury is classified as a LTI with 3 lost work days (i.e. calendar days: Saturday, Sunday, and Monday). LWD Example 2 – an engineer sustains a LTI from a knee injury that initially results in 7 LWD's in December. Subsequently, the doctor instructs the engineer to receive surgery to repair torn ligaments on January 10. The doctor gives permission for the engineer to return to her job on January 25. This injury is classified as an LTI with 7 LWD's reported in December and 14 LWD's reported in January.

4.2

Affected-Individual Classification

4.2.1 Lafarge Employee – any individual that is directly employed (i.e. temporary or permanent) by Lafarge on a part-time or full-time basis or is managed by Lafarge whether or not the individual receives remuneration directly from the Lafarge payroll system. 4.2.2 Contractor – any individual that is employed (i.e. short-term or long-term) by a contract company or sub-contractor to perform work activities or services (including transport) for Lafarge. 4.2.3

Third-Party – any individual including vendors, suppliers, visitors, customers or others interacting with Lafarge (e.g. a Lafarge vehicle collides with a 3rd party automobile).

4.3

Key Performance Indicators

4.3.1

Fatal Injuries (FI) – the total number of FI’s: FI = Total Number of FI’s by Lafarge Employee, Contractor, 3rd Party categorized as Industrial and Road.

4.3.2

Lost Time Injuries (LTI) – the total number of LTI’s: LTI = Total number of LTI’s in two distinct categories: i) Lafarge Employees, and ii) Contractors.

4.3.3 Lost Time Injury Frequency Rate (LTIFR) – the number of LTI’s + FI’s per million hours worked: LTIFR = (Total Lafarge Employee LTI’s+FI’s) (1.000.000) / (Total Lafarge Employee Hours Worked)

4.3.4

1

Severity Rate (SR) – the number of lost work days per one thousand hours worked: SR = (Total Lafarge Employee LWD’s) (1.000) / (Total Lafarge Employee Hours Worked)

4.3.5

2

Medical Injury Frequency Rate (MIFR) = the number of MI’s per million hours worked: MIFR = (Total Lafarge Employee MI’s) (1.000.000) / (Total Lafarge Employee Hours Worked)

Notes: 1 For Lafarge employee fatal injuries, 365 lost work days will be used for calculating the SR. 2 MIFR does not include lost time injuries.

4.3.6

Total Injury Frequency Rate (TIFR)

= the number of FI’s, MI’s and LTI’s per million hours worked:

TIFR = (Total Lafarge Employee: FI’s+LTI’s+MI’s) (1.000.000) / (Total Lafarge Employee Hours Worked)

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