RTIO Critical Order
Communication
Context
– In 2013 a focus on controlling hotshots /express freight was implemented
following an almost year long engagement process to manage the costs
through operations.
• Little impact was evident in terms of a change in costs and items that
were being express freighted
• Action implemented to escalate approvals to manager level via ServU/RTTMS
– Since then Goal 250, a plan to significantly reduce spares inventory to $250M
by the end of 2015, with $325m to be achieved by June 30, 2015 was
launched
– As part of this work a significant focus was placed on warehouse managed
parts and adjusting the stock max levels based on a set of stocking principles
primarily aimed at distinguishing inventory carried based on lead time,
criticality and “planned versus unplanned” nature of the work.
– As part of this the critical order process has been raised as a potential issue
to operations that result in undue delays attributable to a number of different
factors
2
Purpose
The purpose of this work was to:
•
Understand current critical order process end to end, in full.
•
Identify the Gaps: Define and Understand the issues being experienced by the
users and participants in the process.
•
Generate solutions: Prioritise to maximise the effectiveness of the process for the
end user, while ensuring appropriate financial controls and accountability remain
in place.
•
Formulate an action plan with accountable and targeted delivery.
3
High Level Plan, Output and Actions - Phase 1
Identify the
issues
Target
Acc’table
Deliverables
Proposed
Actions
Design
• Define current
end to end process
• Develop tools &
templates
• Finalise core
project teams
• Identify
stakeholders
•
•
•
Communication plan
Risk Register
Map and confirm the
current critical order
process from End 2
End
•
•
•
•
•
Problem analysis Complete brain
storming session
Identify areas of
improvement
Develop actions to be
completed
Design solutions
Allocate team
responsibilities
• Input gathered/collated
from working team
• Improvement Plan
finalized
• Reports for tracking of
results
•
Conduct team meetings
Core Project
Team
Core Project
Team
Site teams
Stakeholders
Oct 2015
Nov 2015
Measure
and track
Implement
• Understand IS&T
timelines
• Develop
Communication
packages
• Implement BPO
Process improvements
• Conduct team
meetings to ensure
deliverables are met
• System upgrade
• All communication
packs gathered and
sent to stakeholders
• BPO process
updated with new
requirements
Core Project Team
IS&T
Stakeholders
Site teams
Dec 2015
•
Follow site reviews
to determine impact
Review actions
progress and
support
Report site
successes &
learning's
Track impact and
reengage if required
•
•
•
•
•
•
•
Baseline Data
Track to targets
Celebrate success
Ongoing reporting
Core Project Team
Site teams
Q1 2016
Communication Context
To help improve and understand the current process & highlight the nature of
improvements to date From:
Critical Order & Centurion Flow
Chart
Critical Order Process Improvements
–Phase 1
Centurion Information and Contact
Details
Westrac Process
RTTMS Change
Confusion of
process flow
Slow response
to requested
upgrades
Lack of clarity &
who to contact for
issues
Why are they
different from
other vendors
Frustration on
time taken for
approval and
lack of options
to modify
approvers
To:
Clear understanding
Increased head count
and improved mail box
process
Clear guide lines,
accountability and time/cost
expectations
Clarity of Westrac
process
More flexibility for site
users, which in turn
will improve the time
for approval
5
Process Flow – (confirmation of current flow chart )
Click
for Centurion Express Freight and Hot Shot Process Flows
6
Critical Order Team Management Improvements
Monitoring
Staffing
•
Action
Expected
Outcome
•
Additional resources being
added to the Critical Order
team. Currently one is in
training. The goal is to have
a minimum of 4 dedicated
resources. (Completed)
Buyers are being cross
trained to support Critical
orders. (Completed)
•
Cross regional training to
give BPO even greater
flexibility to ensure
adequate staffing levels.
(This is still in the proposal
phase)
•
Improved turn around on
responses from
Vendor/Site
•
Overall improvement in
response time
•
Greater flexibility to
manage team support
levels
•
Sufficient resourcing
•
Creating a Critical Order
lead buy team role. This
position will be
accountable to constantly
monitor the urgent freight
inflow to ensure adequate
staffing (Completed)
•
Developing reports to
analyse the Critical Order
inflow across different time
slots including weekends
(end Q1 2016)
•
Team leadership at all
times allowing corrective
measures can be initiated
immediately
•
Trends analysis for greater
team management levels
Prioritization
•
Categorizing Critical
Orders the emails /
Identification and
prioritization
•
“High Importance” priority
implemented for critical
order responses by the
Critical Order Team
(Completed)
•
Identification and
prioritization of Critical
Order mailbox
•
Urgent responses actioned
in a more timely manner
during peak periods
The goal is to have every Critical Order actioned within 60 minutes
Centurion Transport Options
Hot Shot requirement also needs to be logged on the Centurion website
Westrac Critical Orders
• Westrac have a very high level of system automation within their business, which means that an
order received is picked and sent to the dispatch yard, within 5-7 minutes of receipt.
• This means that an existing purchase order cannot be upgraded to a critical order.
• Making it imperative that potential “Critical Orders” for Westrac remain as PR’s (purchase
requisitions) until actioned by the Critical Order team.
For Westrac PR - to ensure no system conversion, the Requestor should change the buy group to 309.

Critical Order received as a PR. The Critical Order
team convert the PR to PO with the upgraded
freight method and ETA.
X
A PO has already generated and been accepted by
Westrac system. The Critical Order team will still
upgrade the order, but as the PO has been
received, picked and packed Westrac will advise it
is too late to change the freight method.
 The TNT road express load cuts off at 4.00pm. Orders placed after this time will not travel until the following day.
TNT pick up orders throughout the day with the last pick up departing at 5.30pm.
It is too late to upgrade the freight method if Westrac have received the PO.
Progress on open actions
•
RTTMS- waiting on IS&T implementation to add the option to select a manager for
approval : Delivery: Estimated end January 2016.
•
Communication sent to all vendors highlighting the importance of returning
information on parts availability.
•
SSC site email address to be added to email communication so all SSC can track
progress.
•
Reporting tool available to stakeholder on request to identify trends . (Contact
Nick Spada for more information)
•
Phase 2 of Critical Order End 2 End process will commence early next year.
10
Frequently Asked Questions
There are two different urgent upgrade processes in place, which one should use?
The RTIO Critical Express orders process is for urgent requirements during business hours.(MondayFriday 6am-6pm)
The Emergency Purchase Order process is for urgent requirements outside normal business hours
including weekends
Why do we need to complete a RTTMS?
The Business decided this control is needed to ensure no unjust Company expenses are committed
without Manger approval. The RTTMS allows improved visibility of exceptions based on request and
consideration by manager based on related production impact.
What is the escalation path for the off shore Critical Orders Team?
If there delays in actioning please refer to link
http://rtio.riotinto.org/BusinessServices/ProcurementGSB/DisplayContent.aspx?SectionID=213&Trail=
&TabID=1
What hours are the RTIO Critical Orders operating hours?
Please note that Critical Order team operates from Monday till Friday between 6:30am and 6:30pm
(WA standard time). For any urgent requirement outside this window; please refer the emergency
purchase order (EPO) process.
I urgently require a service order to be completed, do I need to use this process?
No - Urgent service order need to be communicated to the Buyer to complete. Critical Order relate to
parts that require express freight
11
Frequently Asked Questions
I just need a PO created ASAP, do I use this process ?
No - Critical Order Process is for freight upgrades only.
Do Centurion Good Receipt these orders?
No - The goods receipt must be completed by site, as these order do not go via Centurion depot.
Why are Westrac order completed differently?
Westrac are an integrated Quadrem vendor. This means they have a different highly automated
system for processing orders that enables orders to be received and ready for despatch within 7
mins.
I urgently require a service order to be completed, do I need to use this process?
No - Urgent service order need to be communicated to the Buyer to complete. Critical Order relate
to parts that require express freight
12
Frequently Asked Questions
Why do I need to go to the Rio/Centurion portal to request a Hotshot?
The Hotshot Portal is a dedicated 24/7 service whereby goods are picked up from a supplier and
travel directly to site.
The form detail includes email addresses – all receive updates
Site must nominate contact details for delivery on site for both safety and access purposes
Generally the service arrives at night – no warehouse people
It’s not reliant on Supply personnel – although most sites action Hotshots thru SSC’s
How do I access the Centurion portal ?
The Rio/Centurion portal is available to all RTIO employees in Prospect. Click on my Role and search
for the link.
13
Frequently Asked Questions
How do I apply for access to the Rio/Centurion services on the portal
To access the services within the Rio/Centurion portal, you will need to register your Prospect
logon details.
This can be done by emailing your details, including your SAP number to:
Rio.ctc.olssupport@centurion.net.au
How long does the Critical Order process take?
This depends on how a number of factors.
1.
Once Manager approval is completed in RTTMS the Critical Order Team receive a notification
to action a Critical Order request. (data concludes this take ~7 hours. Suggestion - contact
Manger first so they are aware of workflow)
2.
The Critical Order team endeavour to action all requests within a 1-2 hour time frame
depending on day.
3.
Once the Critical Order is created the vendor is asked to respond immediately to all
stakeholders if there will be delays.
4.
Centurion will organize shipping as soon as the vendor has notified them that the goods are
ready for pick up.
14