1. Produced by: Cement Plant Shutdowns During Lean Times Seth A. Tyler TXI

2. Cement Plant Outages in Lean Economic Times Outage Preparation Outage Execution Key Learning's Questions Key Topics of Presentation

3. Introduction & Overview TXI-Midlothian Cement Plant Process o Limestone o Silica o Alumina o Iron o Fire o Clinker o Gypsum

4. Introduction & Overview TXI-Midlothian Cement Plant

5. Introduction & Overview TXI-Midlothian Cement Plant Major Equipment o Crushers, Vertical Roller Mill, Rotary Kiln, Finish Mills (6), Scrubber, RTO Typical Outages o Kiln (1 major and 1 minor per year) o Finish Mills

6. Slide 6 Cement Plant Outages in Lean Economic Times No Contractors, No Overtime, No Money Changing Goals o Production to Cash Preservation o Proactive (fix it) to Reactive (defer the cost) o Minimizing Risk to Taking on More Risk o Around the clock to four tens and everything in between o Two Weeks to Two Months, Three Mondays o Resource Abundance to Resource Constraint (contractors) o Lack of Sense of Urgency, Challenge of Motivation

7. Slide 7 Outage Preparation The Most Critical Step, Regardless of the Economy Pre-Planning o At least one meeting per month o We try for one per week (We have 6 mills, 1 kiln) Safety o Pre-Outage Contractor Safety Meeting  Set Expectations and Consequences  Send out Packets at least 2 weeks prior to meeting  Insurance Requirements

8. Slide 8 Outage Preparation The Most Critical Step, Regardless of the Economy Scheduling o Gantt Chart

9. Slide 9 Outage Preparation The Most Critical Step, Regardless of the Economy o Use Gantt Chart  Details-more time up front, but will help with the “little things” that always get you in the end  Assign Resources for each task  Use Critical Path Function  Cold Oil-Put the Task on the Chart o Excel vs. Project

10. Slide 10 Outage Preparation The Most Critical Step, Regardless of the Economy Parts Staging o Specific areas for parts, preferably near equipment location o Use a shipping container-Inconvenient, but you can lock up parts o Difficult in lean times due to lack of resources o Have suppliers tag parts and hardware so you know where they go—Work Order and Asset Number

11. Slide 11 Outage Execution It’s The Best of Times and The Worst of Times… Parts Staging o Chasing parts  Even though parts are staged, you still have to get them  Contractors stay on job, employees get parts  No contractors

12. Slide 12 Outage Execution It’s The Best of Times and The Worst of Times… Daily Planning Meeting o One formal meeting daily-All Stakeholders are Represented o Contractors present o Agenda-Follow it o Discuss progress in each area on Gantt Chart-This should be updated prior to meeting. o Rental Equipment, Scaffolding, Cranes, Electrical needs… o Give all an opportunity to speak-go around the room

13. Slide 13 Outage Execution It’s The Best of Times and The Worst of Times… Daily Planning Meeting-Financial Discussion o Contractors are not Present o All contractor time should be turned in and received daily  We have a specific Time Sheet we require them to use  We have their labor rates for each craft  We are watching each contractor total to see if we are getting in trouble in any specific area o All direct charges should be updated daily o All Inventory issues should be updated daily

14. Slide 14 Outage Execution It’s The Best of Times and The Worst of Times… Shift Handover meeting o We have these at each job location o Supervisors are there o No night shift!

15. Slide 15 Outage Execution It’s The Best of Times and The Worst of Times… Contractor Control o Start out with none, bring in as needs increase o Minimize weekend work if possible (start on Monday) o Bring in slowly and get out fast—don’t keep too many for too long o Kiln cool down o Watch the in and outs

16. Slide 16 Outage Execution It’s The Best of Times and The Worst of Times… Scope Creep o Management team discusses risk and rewards of performing unplanned work. Budget Shrinkage o We don’t have the money…  We re-prioritize the work  Willing to accept future downtime---but keep good notes

17. Slide 17 Outage Execution It’s The Best of Times and The Worst of Times… Expecting the Unexpected o Know there will be things o Depend on your Technicians to come up with solutions Rental Equipment Management o Assign one person to be responsible coordinating rental equipment  Understand the rental terms—28 days o Assign equipment to each job and share when possible  There are those who didn’t plan and they will “borrow”…

18. Slide 18 Outage Execution It’s The Best of Times and The Worst of Times… Consumables o Clearly dictate to contractors what you will pay for and what you will provide.  This should be in the pre-outage contractor package o Have hardware supplier restocking every day, twice a day when going back together. Utilize Production  Inspections and minor repairs

19. Slide 19 Outage Execution It’s The Best of Times and The Worst of Times… After Action Review Meeting o What went right o What went wrong o List for next year o Contractor evaluation

20. It’s the Little Things…. Hardware, Parts Staging are Critical to Success o Vendor managed at least daily, tag parts Plan, Plan and Plan Some More o Use detailed Gantt Chart o Stick to your meeting agenda Keep Track of Your Expenses o Receive contractor time daily o Keep up with inventory and direct charges daily Key Learning’s

21. Questions? Cement Plant Shutdowns During Lean Times

22. Produced by: Seth A. Tyler TXI Styler@txi.com