1. R&M and Power Costs analysis
and Reduction Strategy
 Aim -23% reduction in overall R&M and Power Costs in
the region
 How
 Reduce rate of breakdown – spares quality and correct use of
the machine
 Use of quality spares at the right price –eliminate the middleman
 Accountability – machine ownership scheme (artisan + operator)
 Moving towards Total Productive Maintenance –reduced
workshop labour from 34 to 23 and sawmill R&M from 43 to 25
@ 06/2012
 Key skills retention and training schemes –toolbox scheme

2. Charter Mobile
Equipment Age
Distribution
1 1
2
1
1
1
1
2
1
2
1
5
3
1
5
1
2
1
2
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10+.
Telleloggers Skidder FE Loaders
Haulers MAN Tractors
Fire Tenders Roads
• 77% of 34 production
mobile equipment is 4
years old
• Maintenance cost
increases with age

3. Focus on
61%
33%
6%
FY12 Mobile Equip R&M Costs-
Actual
Spares Tyres Oils
• Spares
• Quality- rate of
replacement &
quality of repair
• Price
• User -reduce
need
• Tyres
• Correct spec tyre
for the operation
• State of roads

4. Major Costs &
Strategy
0
2
4
6
8
10
12
14
actual2010 actual 2011 actual 2012 Budget2012 budget
2013
Target
Mobile Equip R&M for
Plantation($/Ha)
Plantation($/Ha)
• Budget cost
• 4 new tractor
engines
• 1 fire tender
gearbox
• Target -25%
reduction -$13 -
$9.8/Ha
• Strategy
• Partially rebuild
engines –too old for
new engines
• Replace the old
tractors in FY14

5. Major Costs &
Strategy
0
1
2
3
4
5
6
7
8
9
10
actual2010 actual 2011 actual 2012Budget2012 budget
2013
Target
Mobile Equip R&M for
Harvesting($/m3)
Harvesting($/m3)
• Budget cost
• 3 new Tellelogger
engines
• 3 new hauler
engines
• 4 new Walking
Beams
• Target – 30%
reduction $9.12 -
$6.38/m3
• Strategy
• Spread engine
replacement over 2
yrs
• Cover with rebuilds
@ a cost 20% of
new

6. 0
0.5
1
1.5
2
2.5
3
actual2010 actual 2011 actual 2012Budget2012 budget
2013
Target
Mobile Equip R&M for
Sawmill($/m3)
Sawmill($/m3)
• Budget
• 1 new FE Loader
engine
• Focus on
strategies to
eliminate FE
double handling at
the deck to save
on fuel
consumption

7. 0
5
10
15
20
25
actual2010 actual 2011 actual 2012 Budget2012 budget 2013 Target
Sawmill R&M ($/m3)
Sawmill R&M ($/m3)

8. Sawmill R & M costs Reduction
Strategy
 Aim -30% reduction in R&M cost from $10.51 to $8.4/m3
 Labour utilisation – moving towards TPM….50% reduction in units
 Integration of first-line maintenance personnel into production teams
 Reliability cost -rate of breakdown
 Spares quality –at least 60% reduction in premature bearing collapse when we fitted SKF
bearing in the plant
 Adhere to the planned maintenance schedule
 Equipment ZESA grid instability protection – reduce the rate of electric motor
rewinding
 Quality of repairs work to reduce rework -retain and train key skills –PLC;
SCADA; High Voltage Switchgear Services
 Spares cost
 Buy quality from the manufacturer –eliminate the middleman
 Transport cost –Lathe & Milling Machine on site will reduce the cost machined spares
sourcing by at least 2 Mutare-Chimanimani-trips cost

9. 0
2
4
6
8
10
12
14
actual2010 actual 2011 actual 2012 Budget2012 budget 2013 Target
Power($/m3)
Power($/m3)

10. Power Costs Reduction Strategy
 Aim – 27% reduction in power cost from $8.71 to
$7.5/,3
 Spilling engine generator
 Consistently run in grid mode @ 450kW – 40% of sawmill power need @ $0.05/kWH
compared to ZESA @ $0.13/kWH & diesel generator @ $0.32/kWH
 Timely spares procurement to reduce its down time
 Power Factor monitoring-maintain it at unit
 Maximum demand management- Daily checklist in place
 Lighting cost –phase-out and replace ordinary light bulbs with equivalent
energy savers in the Region

11. FY12 Structure
34

12. Engineer
Wkshop
Supt
Autoelec
+ Asst
3 mechs
5 Svcmen
Welder Chghand
Svcman
Bike mech
Trailer
mech
3 tyre
fitters
Wkshop
Clerk
Project
Welder
Planner23 heads
Workshops FY13