2. A Risk Based Approach to Asset Management of Alcoa’s Civil Infrastructure in WA Presented by DENNIS FOO, Industrial Maintenance Roundtable ( IMRt )

3. Business Case Across Alcoa’s WA Operations, Civil / Structural assets such as process buildings, workshops, offices, architectural buildings and other plant facilities are at a stage whereby some $10M is required annually for maintaining the long term structural and functional integrity of these assets in an acceptable condition.

4. Mission Statement Develop an Asset Management system to ensure that Alcoa WA civil assets are maintained at the required condition to perform their duties consistent with Alcoa values and strategic direction.

5. PROBLEM IDENTIFICATION RISK ASSESSMENT & PRIORITISATION FUNDS AUTHORISATION YEAR END CLOSURE & FEEDBACK Asset Management in Alcoa ….what is it all about ? PLAN & EXECUTE WORKS PROGRAM

7. WA Civil Asset Management Team WA Equipment Management Team Sponsor WA Civil Infrastructure Team Sponsor WA Principal Civil Engineer WA Senior Civil Engineer KW Team- Senior Asset Integrity Engineer ( Alcoa ) - Civil Mtce Coordinator ( External ) PJ Team- Senior Asset Integrity Engineer ( Alcoa ) - Civil Mtce Coordinator ( External ) WGTeam- Senior Asset Integrity Engineer ( Alcoa ) - Civil Mtce Coordinator ( External ) Mining Team- Civil Projects Manager ( Alcoa )

8. Where Have We Been ? WA Equipment Management Lead Team sponsorship - 1999  Longer-term planning & regular reviews  Site based teams  Civil database  Risk Assessment methodology  Projects risk rated & prioritised  Condition Assessment methodology  Internal Customers recognition & acceptance of process  On-line documentation of asset management process  2003 ASAT AUDIT Best Practice Recognition 

9. Key Features Integration with Corporate Risk Mgmnt Tool  Civil Asset health assessment  Best Practice Info sharing/networking - Atlantic, Vic Ops, Mining Group, Electrical, Mechanical assets  Senior Management endorsement & support  Education & awareness  Consistency across Operating Centers, Refineries and Smelter locations 

10. The “Big Hits” Process Tanks Concrete, sump and drain repairs Structural Steel Repairs Rail Sidings Plant Gas Line Plant Storm Sewers Roads Buildings

12. Risk Management Tool Are people upset because they think it’s dangerous …..or do they think it’s dangerous because they are upset ? Risk Assessment Matrices …RM_.xlsRM_.xls

14. Risk Consequences

15. Risk Likelihood / Probabilities

18. Maintenance Deferment Legacy

19. Budget Control and Cost Reporting

23. In Summary WA-wide process and teams Cross-site communication and info exchange Process recognition and acceptance at all levels Common electronic database Risk rated and prioritised projects in annual works program Condition assessment & rating protocols Budgeting and cost monitoring ( process transparency ) Asset Management Plans Engineering Technology input & support

24. EFFECTIVE ASSET MANAGEMENT People Resources Funding - $$$ Control Systems Intervention Strategies Inspections and Condition Monitoring Auditing & Reporting Systems Asset Mgmnt Know-How Customer Expectations Organisational Attributes Risks Assessments Condition Assessments, Trending Asset Performance Requirements Risk Prioritisation Asset Health & Remaining Life Asset Valuation Snr Management Endorsement Operation Dept Buy In Asset Management Team Service Providers / Contractors Training Do Nothing Repair – Strategic / tactical mtce works program Replace Dispose Statutory / Legislative Requirements Internal / External Standards QA and Document Control Systems Budgeting process Mgmnt Budget Review & Approval Process IT Hard & Software Systems Historical & “ Live” Database Time Based Inspections Condition Based Inspections Risk Based inspections Informal /routine Local Inspections Corporate Direction Leadership Teamwork Discipline & Commitment Professionalism