Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 114 115 Integrated Annual Report 2023 Upholding Good Governance and Economic Resilience Fostering Innovation and Research We strive to foster a culture of innovation among our workforce by encouraging employees to participate in improvement projects. To facilitate this, we have established an improvement platform where employees can propose initiatives to enhance our manufacturing processes. This structured platform requires the submission of proposals that include cost and benefit analyses, proposed improvements and expected outcomes, thus ensuring sustained progress. OUR APPROACH Implementing Lean Manufacturing Principles Across our manufacturing operations, we have integrated the 5S Principles – Sort, Set in Order, Shine, Standardise and Sustain – to promote lean manufacturing, while our operations in China have embraced an additional sixth principle: Safety. The implementation of these principles has led to improved safety, cost savings and asset utilisation. In tandem with this, we continuously strengthen related processes through regular audits and quarterly inter-plant competitions. 6S Principles 1 2 3 4 5 6 1 SORT Sort and eliminate. SET IN ORDER Tidy, place, organise. 2 SHINE Clean, upgrade. 3 4 STANDARDISE Simplify, order. SUSTAIN Educate, communicate, maintain 5S standard. 5 SAFETY Safety, cost savings and asset utilisation. 6 SUSTAINABLE MANUFACTURING GRI 3-3 M6 WHY IT MATTERS Sustainable manufacturing stands as a cornerstone in advancing decarbonisation and fostering innovation within the aluminium industry. By embracing industry best practices, we not only bolster workplace safety but improve operational efficiency and cost-effectiveness, all while conserving natural resources. Additionally, embracing sustainable manufacturing equips us to navigate evolving regulatory landscapes, fortify our brand reputation and cultivate stakeholder confidence. UN SDGs Capitals FC MC IC Upholding Good Governance and Economic Resilience SOIP Climate Change Initiatives Research & Development Department Initiatives Complementing this initiative is the Sarawak Operations’ Improvement Programme (“SOIP”), which enables our employees in Sarawak to propose ideas and solutions that objectively improve manufacturing processes. The SOIP is categorised into two (2) segments: SiPros for long-term initiatives leading to systemic changes, and iPros for smallerscale, standalone solutions. In FYE2023, we implemented 11 SiPros and 130 iPros, including initiatives covering the digitisation of reporting processes and the improvement of manufacturing processes, as detailed in the respective sections of this SR 2023. To further our innovation efforts, we established a research and development (“R&D”) team in FYE2021 that focuses on R&D projects specific to climate change. We also collaborate with several local universities, fostering partnerships in research, academia, student and staff development and human resource capacity building. Read more on our sustainable manufacturing initiatives in the respective sections of this SR 2023. In our China entities, around 52 continuous improvement projects were implemented in FYE2023, focusing on manufacturing and product quality improvement. OUR VALUE CREATION Innovating Towards GHG Reductions We are undertaking various R&D initiatives and improvement projects at both the strategic and operational levels of our entities with the aim of achieving our interim GHG reduction targets, and resource efficiency. These R&D projects focus on three (3) main themes: Industrial Revolution 4.0 (“IR 4.0”), decarbonisation and energy reduction. To drive our Sustainable Manufacturing initiatives and activities, we have spent RM50.6 million in FYE2023. Read more on our energy reduction efforts in the Climate Change and Energy Management sections of SR 2023. Specifically, we have increased data interconnectivity and integrated smart automation, adopt cutting-edge technologies and innovative solutions to further refine and optimise our operations and reduce our operational GHG emissions. Notably, PMI has actively embraced digitalisation and intelligent transformation. As a result, PMI is recognised as one of the Guangdong Provincial Engineering Technology R&D Centre, and receiving an honour as a high-end aluminium intelligent fine processing engineering technology research centre. Additionally, we have introduced digital transformation into our smelting plants, developing the Smelter Operation MES. This initiative utilises big data to streamline smelter operations, enhance efficiency and reduce operating costs. Moreover, we continued to drive operational improvements in FYE2023 by deploying several key systems, each with specific improvement objectives, and have allocated a budget of total RM4.5 million for R&D for 2024. Intelligent Crust Breaker and Pot Controller System Upgrade Upgrading our pot controller and conventional crust breaker to an energyefficient intelligent version, enhancing control over sludge and anode effects to reduce GHG emissions Pot Digital Measurement System Digitising our pot measurement data to expedite data production delivery Systems Deployed Purpose of Improvement NC
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