ERP Project Internal Discussion September 12, 2013

Agenda / Topic Discussion 1. Item Coding / Equipment Coding  Conclusion: see slide# 3 2. Raw Material / Spare Part Procurement  Conclusion: see slide# 4 3. Maintenance Center  Conclusion: see slide# 5 4. Tuck Scale & Belt Scale (LiGu System)  Conclusion: see slide# 7 5. Unify PLC Log sheet for production  Conclusion: see slide# 8 6. Inter-company transaction  Conclusion: It will be re-discussed with Mr. Ryan when doing operation training 7. Costing must be separated by different production line  Conclusion: ratio will be provided by CFC 8. Fixed Assets management must be separated by Fixed Assets / Expense Assets.  Conclusion: CFC will make discussion of a standard code rule and will update the result on Monday 16 th Sep. Accounting dept. will be in charge for creating code rule as well as management and GA Dept. will be in charge for maintaining the transactions of assets. 9. ID & VN some report for outside need to print out the 2 languages ( Title and contents )

1. Item Coding Item code rule in CFC 9 Digits  12 – 34 – First 2 digit are group (10= item with value; 20= item without value; 30= expensed item; 40= item for project; 50= Disposes item) Second 2 digit are part category (using matrix table, separately for Plant and GA) Third 5 digits are bin card number / sequence number) Currently CG (Kupang) follows CFC’s item code principles with little modification such as: only using 1 matrix table for all, there is no grouping. Need same item coding principles when we use integrated ERP system in group company and facing some issues such as: - Unify item code principles that can be applied to various business unit (Cement plant, Ready Mix Concrete and Aggregate Company, Transportation, Trading) - Item code rule should be flexible, extensibility, and easy to recognize and applicable for whole group and can be fast learn by new employ. Background 1.It is agreed to use matrix table content in order to make it consistence and easy to extended to other business growth in future. CFC & CG will use the same table. Mr. Tony will held the meeting on Sep 16 to discuss about variant code will start from number 1 instead of adding number zero in first digit in front of existing bin card. Discussion Results Main Objectives: - Our Group will have same Item Coding principles

2. Raw Material / Spare Part Procurement CFC recommend PR for raw material and spare parts will be raised by users instead of W/H. Current practices are: Users are more familiar equipment life cycle to raise PR for purchasing the spare parts for maintenance. Any departments issue PR will be integrated and approved by plant director who take the whole responsibility of the plant operation. W/H may more suitable to manage the inventory and ready for users only instead of play the role of integration. Hence, recommend PR will be raised by users instead of W/H in CFC CG (Kupang) practices are W/H will raised PR for all of stock items procurement like Raw material & spare part, based on defined minimum stock availability (Minimum and maximum stock warehouse availability must be setup by users together with warehouse based on estimation/historical usage) WH have authority to postponed on raising PR if the stock items not moving in certain period PR for non stock items / non warehouse items should be raised by users. Background 1.Due to specific requirements in each country, so we proposed to have different way in CFC and CG Discussion Results Main Objectives: - Concept alignment on stock item procurement

Work Centre 1 Plant Maintenance Electrical / Instrumentation GA (Office, Public facility, Vehicle) Maintenance Mechanical / Workshop Civil /Utilities Mining and Heavy Equipment Work centre 2 Plant Maintenance GA (Office, Public facility, Vehicle) Maintenance Electrical / Instrumentation Mechanical / Workshop Civil /Utilities Work centre 3 GA (Office, Public facility, Vehicle) Maintenance (i.e. Kupang, Bayah Plant) (i.e. Ciwandan, Head Office) (i.e. Cemindo) 3. Maintenance Main Objectives: - Concept alignment on Maintenance Centre or work flow mechanism on repairing order 1. We propose all of maintenance notification (repairing note) pass through to designated functions in each Work Centre like shown on below 2. We will have some work center (or other name) for each location site which system applied. A work centre is an organizational unit where a work steps is carried out, producing an output. The work center defines where and by whom an operation is to be carried out. 3. The maintenance modules (CMMS) only applied to non CAPEX order. For Investment work (CAPEX) and/or Maintenance / repair work to improved Fixed Asset in order to extend their life time will be using Project Management Module

Maintenance System in brief Pick-list (to take W/H spare parts for stock items) Notification create by user and direct sending to the each PIC in their Work Centre (see previous page) with the following type of notification 1. Maintenance Request. (notifications will be written for the equipment that failed. User don’t know exactly problem, i.e. abnormal noise etc). 2. Malfunction Report. (notifications will be written for the equipment that failed. User already know what the problem, i.e. motor burn etc). 3. Production line stop. (notification will be written against the equipment that caused the production line to stop. The downtime in these notifications will be the duration of the downtime of the production line. These type will determine of work priorities and calculated KPI PIC (Person in Charge) verify notifications that requested by other departments and create maintenance order or not after verify/checked., if not requestor will be notified. Verify Notification Maintenance / Work Order Maintenance Order type 1. Corrective maintenance order (i.e. equipment breakdown, repair etc) 2. Preventive maintenance Order (i.e. scheduled, overhaul etc) Note: Preventive maintenance triggered from schedule/planning therefore notification not required and automatic generated from the system Work Planning (assigning people/technici an) Generate Purchase Req, for non stock item or services/outsources Maintenance orders must be planned daily, weekly, monthly, and quarterly period In case of additional stock material required after maintenance order has been released, there will be a goods issue form to fill in and sign by leaders or above before goods issue can be processed Maintenance Execution Maintenance Completion Actual information of maintenance order (e.g. man-hour, spare part used, external services used etc) must be updated into the system during maintenance works are in process and after the maintenance works are completed. A maintenance order can be completely closed if:  All relevant activities are finished.  All of actual labor costs have been confirmed and settled.  All relevant costs in maintenance order are captured (labor costs, external services, and materials costs) and settled. For discussion only

4. Truck Scale & Belt Scale Currently CFC have 2 system which integrated each other (LIGU System and Application System). LIGU system is weighbridge system which widely customized covering other functions such as Truck registration (scan Driver ID & truck license), ticketing, weigh tolerance, packer control panel, and monitoring the In- Plant truck movement. LIGU system in CFC is also used for belt-scale in production area. LIGU System well proven implemented for years and requires special customization to ensure no impacted to the daily operational. Currently CG have weighbridge for Kupang Plant operational and F/G Warehouses. CG’s weighbridge running with simple process just tools to get tare and nett weight. Background It recommend TIPTOP ERP replace LIGU system for the Truck Scale & Belt scale control. (LIGU System can’t used due to basic data cannot be unified with ERP System). Notes: Now CFC already have 12 sets Truck Scale + 7 Belt Scale, But because LIGU system is using local database, When User Dept. create the basic data for Goods / Products / Vendor / Customer can not match with the ERP system and will have different ID code. With considered to project scope and feasibility, it’s suggested LIGU replacing will be done later. CG & CFC will use truck scale to provide tare weight and net weight to TIPTOP system (weight ticket printout from ERP) and in future we will use ERP to control weight scale to include in-plant truck monitoring. We will run parallel the two system LIGU & ERP until TIPTOP system established and stable. Asking LIGU to provide open database mode. Discussion Results Main Objectives: - To find best solution for ERP system interface to existing system (LIGU System)

5. Unify PLC Log Sheet CFC have 3 kinds of PLC data. 1st Line / 2nd Line / Hiep Phuoc Grinding Plant. CG have some kind of Log file data generated from Hyperion (DCS application software) To unify those kind of Log file data is impossible because different purposes Unified PLC log file data required for interface purpose between ERP system and field device. To unify it its impossible because different purposes. So, TIPTOP should based on different equipment to design and get the data automatically. Also have to design the interface for user can entry data manually Background TIPTOP should based on different equipment to design and get the data automatically from SQL DB of CFC & CG. TIPTOP should design the interface for user can entry data manually (for emergency case) TIPTOP provide DB template base on CG and CFC log file data then TIPTOP will generate related reports The log file must include production report, operation report, control room, finger-printer, gate access, telephone switch board, weight scale, belt scale, gasoline station. Discussion Results Main Objectives: - Unify PLC Log Sheet for system interfacing purpose

RED word means manual input (others auto generate from system) Customer S/O PR P/O S/O P/O S/O D/N G/R D/N G/R D/N A/R A/P A/R A/P A/R Transfer CG AASTARCFC TipTop Inter-Company Transaction Since AASTAR also manage their own customer and product (i.e. plywood & palm oil), means it's not just inter-company transaction pass through