AltaSteel is a steel plant in Edmonton, Alberta, Canada seeking to improve equipment performance and reduce costs through a Proactive Maintenance Initiative (PMI) focusing on reliability culture change and continuous improvement. The PMI involves a joint effort between management and the union to implement reliability best practices through focus groups, new roles, training, and asset management software. Initial results include improved skills, collaboration, processes, and overall equipment effectiveness, with an estimated $15 million return on investment over time.

1. Reliability Excellence Culture Change and Continuous Improvement

3. AltaSteel Edmonton, Alberta, Canada Established 1955 315,000 tons/year $200M/year 420 employees

4. AltaSteel

5. Seeking Improvement

6. Seeking Improvement

7. External Practices Assessment IVARA Corporation AltaSteel Largely 1 st generation - Some aspects of 2 nd generation

8. External Practices Assessment IVARA Corporation Practices & Technologies Adoption

9. Improvement Plan Sound Technical Solutions = Quick Wins Company Culture Change = Sustainable Results Repair-focus > Reliability-focus

10. Proactive Maintenance Initiative (PMI) Purpose: Improve equipment performance, reduce costs Continuous improvement Sustained by AltaSteel personnel

11. Proactive Maintenance Initiative (PMI) Securing future prosperity Knowledge retention Company culture change Urgent !

12. Engaging the Union Letter of Agreement: Partnership to jointly implement PMI

13. Change Methodology Involvement = Ownership = Sustainability

14. PMI Steering Committee Purpose: To jointly establish the culture and business practices that achieve and sustain reliability excellence.

15. PMI Organizational Structure Life-Cycle Engineering

16. PMI Organizational Structure Life-Cycle Engineering Work Management Focus Group Materials Management Focus Group Reliability Focus Group

17. Focus Groups Unity Cooperation Purpose

18. Process Development

19. Process Development

20. Key Performance Indicators

21. New Roles Stores personnel Maintenance Planner/Schedulers Reliability Specialist Maintenance Manager

22. Training and Communication

23. Pilot Area Test and adapt to processes

24. Celebrating Successes

25. Asset Management Software Implementation Set-up Data loading Integration Training “ Live” September 21 st , 2009

26. Lessons Learned Leadership Vision Leadership Involvement Managing Expectations

27. Lessons Learned People Not Just Maintenance Resistance to Change Collaboration Ownership

28. Benefits Realized Skills Union/Management relationship Collaboration Increased acceptance Workforce involvement Knowledge transfer

29. Benefits Realized Processes & organizational structure System for managing work Best practices applied Storage facilities Reduced contractors Overall Equipment Effectiveness

30. Overall Equipment Effectiveness (OEE) Availability x Efficiency x Quality

31. Asset Optimization Commitment Overall Equipment Effectiveness (OEE) Year Actual OEE OEE Targets Best In Class OEE = 80%

32. Return on Investment Estimated Net Present Value $15M XXXXXXXXXXXX Annual Operational Profit Benefit (USD Million) Year

33. Conclusion