1. Newmont Data Cleansing Project Overview ECCMA International Cataloging Conference
October 26, 2006

2. Newmont Data Standardization Overview
Agenda
Company & project overview
Project approach
Lessons learned
Results & going forward

3. Company Overview 2005 Revenues: $4.4 billion 2005 Equity Production
6.4 mm Oz’s
2005 Equity Reserves
93.2 Oz’s mm
Large company and extremely spread out globally
Supply Chain intensive operations (equipment, housing, etc)
Purchasing and Inventory operate under various environments (sourcing, taxations, infrastructure, et. al.) creates both needs for standardization, as well as presenting unique challenges
Sites are very focused – as they should be – on digging for gold and Data standardization was initially a hard sell

4. Business Drivers for Standardization
NEV
NAL
MYSRL
NGGL
PTNNT
Site / Regional
Purchasing
Inventory
Item identification
Unique instances
of ERP databases
Newmont
Corporate / Global
Sourcing Leverage
Component Standardization
Opportunity Identification
Apples to Apple Comparison
Each site desired better data and improved business
Corporate has business need
Data infrastructure looks like this
Data standardization was required to meet business goals – site level and corporate
Site level…No single instance ERP
Move to center-led
Historically, de-centralized operations. Autonomy.
Goals now required a consolidated “world view”

5. Goal and Guiding Principles
All sites will catalogue the same items in the same fashion, including names, descriptions and associated classification links (catalog and associated data).
Guiding Principles
Adopt an open standard (eOTD)
Based on NATO Schema – familiarity and system base
Linked to UNSPSC for global spend analysis
Design a system and process to lower the pain across the sites
Level of effort – resources
Cost
Catalog the ‘right’ items
Remove duplicates and obsolete (archive)
Integrate eProcurement program to move items to Suppliers catalogs
Key decision made to “link” with a global open standards for catalog (some external and some internal for other data).
Someone has done the work
Ellipse NATO based also, formatting and structure built around NATO
End Users familiar with it
Maintenance and accessibility
Like UNSPSC due to spend analysis program using that
Knew there would be overlapping items site to site
Revisited philosophies about what items should be in our catalogs (although the definition of “right” items changed along the way)
This is still going on—ultimately site driven

6. 210,000 Items Globally - One Year to Cleanse
Project Approach
210,000 Items Globally - One Year to Cleanse
DEFINE
Select catalog standard
Define internal standards
IMPLEMENT
Cleanse catalog
Update tables & associated records
PERPETUATE
Implement Business process/workflow
Implement controls (Validation/Audits)
Provide tools/training
Some things are just obvious…
We needed a standard before we could clean (DEFINE)
Then we could IMPLEMENT
We needed to keep the data clean to prevent ourselves from doing this all over again in the future (PERPETUATE)

7. Implement: Catalog Cleansing States
Level I
Item Names assigned
Goal: 100%
Level II
Apply existing data
Automation and manual
Goal: 60%
Level III
Research to full attribution
Goal: 40%
Catalog cleansing is the real meat of the project
Could clean each item all the way in one touch, or focus on each level individually. Good case to be made for either.
Really more of a workflow for each item than project phases, as all three could be simultaneous
Doneness: Need to asses desires in light of reality. Impact by quality of legacy data—some items cannot be identified even by holding in hand.
All levels may be simultaneous at sites and globally

8. Implement: Global Team Structure
Denver
Nevada
1 – Program Mgr
1 – Project Mgr
Ensure the project is going smoothly, resolve issues, find resources
Total Team
1 Program Manager
1 Project Manager
4.5 Catalog Mgrs
.5 Dictionary Owner
7 Catalogers
1 3rd Party/Vendor
Additional outsourced cleansing
.5 – Catalog Mgr
.5 – Dictionary Owner
Clean NEV Items, ensure dictionary grows correctly
Peru
Ghana
1 – Catalog Mgr
2 – Catalogers
Clean MYSRL items, submit new Item Names
Challenge: Although individual sites are very bought into the need to cleanse, they are also busy digging up gold and are used to operating autonomously
COMMUNICATIONS
Weekly meetings with vendor
Biweekly meeting with Newmont team
Portal (collaborative environment & general awareness)
Brochures (company-wide awareness) …
Indonesia
Australia
1 – Catalog Mgr
1 – Catalogers
Clean NGGL items, submit new Item Names
1 – Catalog Mgr
3 - Catalogers
Clean PTNNT and NEV items, submit new Item Names
1 – Catalog Mgr
1 - Cataloger
Clean NAL items, submit new Item Names

9. Implement: Architecture
1. All Items into Central Repository
2. SW Auto-match to NMD
3. SW Match to OEM (part #)
4. SW facilitates global cleansing
5. SW Match to Newmont part #
NEV
NAL
Global
Repository
Level 1 Clean – Item Name
MYSRL
Level 2 - Partial Attribute
NGGL
Level 3 - Full
PTNNT
Newmont
Catalog
NMD
OEM

10. New operational activity to support clean data…
Perpetuate
New operational activity to support clean data…
CLEAN DATA
Perpetuate has defined new operational needs…
Business processes:
New item name requests workflow
Cataloging workflow
Data audits
Tools:
CIR
Globally standardized cataloging manual
Roles:
NMD Owner
Data “manager”
Biz Process Tools Roles

11. Other Deliverables In addition to data cleansing…
Newmont Master Dictionary (“complete”)
Cataloging Manual (complete)
Catalog Item Request (planning)
Enhanced supplier data (planning)
Governance/maintenance

12. Lessons Learned LOE Spreadsheet cleansing Cleansing not “linear”
Catalog = moving target
Track and collaborate
Catalog synchronization
New roles/responsibilities
Single instance ERP…
Shorten each line
Fully understand LOE
Appreciate that cleansing is not as “linear”
Accommodate your catalog being a moving target (scope and plan accordingly)
Again, don’t forget the peripheral elements
Set up an infrastructure to track and collaborate on standards and implementation
Expect new business process, training
Single instance ERP…
For us, a lot of selling upfront. And then…
1. LOE
Get data people involved in LOE and listen to them. Understand who is going to do this work and how much “free time” they really have. Strong project management structure for resource planning.
Plan to get outside help for project management, automated cleansing, and hands on cleansing
2. Linear
Easy stuff goes quickly, then cleansing gets more labor intensive the closer you are to the end, and progress slows
Phases can/should be simultaneous
3. Lock down scope, but leave room to feed newly cataloged items into the project (we have very active cataloging)
Accommodate project tracking/success without coming to the end of the project with a bucket of still to be cleaned items
4. Peripheral
In our case, dictionary work (big!), standards group (QTAG), managing vendors, et. al.
5. Track/Collaborate
A lot of data floating around in different states of doneness, discussion, approval, review processes, et. al.
Newmont used vendor application, spreadsheets and portal for sharing/discussing

13. Benefits Realized To-Date
Early results at our pilot site…
14,000 potential duplicates
25,000 archived items
Enhanced improperly coded items (“tens of thousands”)

14. Meeting 2007 Goals Catalog Item Request: 2006/2007
Standards and workflow automation
Standardized Manufacturer Mnemonics: 2007
Issue: How to maintain standard
Enhanced Supplier Data: 2007
Implement requirements
Catalog Synchronization: 2007
Issue: standard & external workflow
Implement “Data Steward”