OCTOBER 2016 • VOLUME 24 hua51fb975227d6640e4fe47854476d133.cdn.ilink247.com...Clive Tasker is the...
Transcript of OCTOBER 2016 • VOLUME 24 hua51fb975227d6640e4fe47854476d133.cdn.ilink247.com...Clive Tasker is the...
page 1
OCTOBER 2016 • VOLUME 24
In celebration of International
Mandela Day usM staff built cement platforms for two
company sponsored JoJo tanks at the sqondokuhle Early Childhood Development Centre (ECD) in one
of their small scale grower areas.
Umbonowethu
page 2
Absenteeism AwAreness: Hard work spotlights the character of people: some turn up their sleeves, some turn up their noses and some don’t turn up at all.
The First WordA very big welcome to our three new USM Board members Clive, Mandla and Lawrence. Making informed and timeous decisions is what will ensure USM remains sustainable over the long term. All three gentlemen bring a wealth of diverse experience and knowledge to the Board and we look forward to their long and fruitful contributions.
The impact of last season’s drought continues to challenge the operations of the mill. RV% cane has been particularly low, impacting our cane to sugar ratio. The fibre % cane has been excessively high, especially the ash / sand / mud component, compromising extraction and being aggravated by the good winter rainfall! If these good rainfall patterns continue, we can expect a healthy crop recovery next season. No doubt, the 2017/18 season will have challenges of its own; the prosed tax on sugar sweetened beverages has already come to the fore. As always, USM together with its partners will rise to such challenges. Our resilience is clearly evident in this edition of the Umbonowethu where the USM team is a source of hope and inspiration in our surrounding community. Well done to the cane supply team on supporting the three new grower cooperatives, the USM delegation that helped the Sqondokuhle Early Childhood Development Centre and our Heritage Day enthusiasts who remind us that we have so much to be thankful for living in this great country of ours, despite our challenges with the drought! The entire USM team has proved to be remarkably resilient during these difficult times, well done team! USM also proudly supports the Sugar Industry Trust Fund for Education; if your child is considering tertiary education in 2017 I am sure the flyer enclosed in this edition of the Umbonowethu will interest you.
We have a rich heritage at Umfolozi, dating back to 1927 at the current mill site, but with it come the responsibility to remain relevant in an ever changing global economy. Continuous improvement remains a key theme at USM and there are a number of initiatives underway, a principle one being Project Uptime (asset management). UCOSP over the decades have also being continuous improvement stalwarts with implementation of their flood mitigation measures on the Umfolozi flood plain. The prospect of above average rainfall going forward is welcome knowing that most flood events will be well mitigated by UCOSP’s interventions. This culture of continuous improvement needs to infiltrate all aspects of our business; it is part and parcel of being sustainable. Building one united Umfolozi team between miller and growers, management and staff by fostering understanding and respect is equally important. I trust you will be inspired by this edition of the Umbonowethu.
As always, work smarter, work together, have fun and be safe!
Lawrence McGrath is a director on the usM Board. Lawrence grew up in Durban and studied to become an accountant. He was later employed by Ithala Development Bank where he was involved in numerous agriculturally related development projects. The attractions of a rural context lead to Lawrence accepting the appointment as the Financial Manager of uCOsP, where he later became the General Manager and has been for an extended period. During his time at uCOsP, Lawrence has overseen significant engineering advances and capital expenditure on flood mitigation measures on the umfolozi flood plain. He also has a deep seated understanding of narrow gauge railways, transport logistics and sugarcane agriculture at umfolozi, which he brings to the usM Board.
Welcome to three new members of the usM Board of Directors
Clive Tasker is the Chairman of the usM Board. Clive grew up and was educated in Durban and Pietermaritzburg, where he qualified with a BA LLB and became a practicing attorney with Bowman and Gilfillan. Prior to joining the usM Board as chairman, he recently retired as CEO of standard Bank Advisory based in China and before that was amongst others during his career also the Head of standard Bank’s International, Corporate and Investment Banking division, the Chief Executive of standard Bank Africa and the chairman and/or director of numerous boards within the Bank. Clive was also the Chief Executive Officer of Educor (a listed company on the Johannesburg stock Exchange) and Managing Director of PPC Cement (Pty) Ltd. He brings a tremendous wealth of business experience and knowledge to the usM Board.
Mandla Hlatshwayo is the independent Non-Executive Director on the usM Board. Mandla obtained a BA Law degree at the university of swaziland where he was also elected President of the student Body that lead him into active service in the African National Congress during the 1980s. He started his career in the sugar industry in Human Resources but amongst others was also the Managing Director of ubombo sugar, the President of the swaziland sugar Association and Executive Director of the Multi-national Illovo sugar Group. Mandla was also the founder and patron of the swaziland Youth Empowerment Organisation as well as having actively participated in a number of non-governmental organisations. He brings a tremendous wealth of sugar industry experience and knowledge as well as political acumen to the usM Board.
Mandla Hlatshwayo
Lawrence McGrath
Clive Tasker
page 3
Absenteeism AwAreness: You don’t get what you wish for. You get what you work for.
USM supports three new co-operativesUSM is thrilled with the establishment of three new co-operatives.The Umhlana, based in KwaMbonambi, Mnqobokazi in Hluhluwe and Sokhulu in Sokhulu, have been receiving training and access funding for ratoon management and replanting. Cane Supply Manager, Nhlakanipho Dlodlo, said the Mill offering support to co-ops is crucial for numerous reasons. ‘By lending a helping hand, we ensure more sustainable cane supply, community development and widespread training that boost successful farming as a collective. ‘But most importantly, it is much easier for a co-op to access government funding than an individual.’
USM is also in the process of implementing a replanting programme with funding from the Department of Agriculture and Rural Development. ‘The Seedcane Project will assist co-ops with necessary infrastructure and equipment, including 20kms of road gravelling for the Sokhulu and Mnqobokazi co-ops and fencing on 50 hectares of land for the Umhlana co-op. ‘The funding will also be used to purchase four tractors, two Bell Equipment loaders, four tip trailers and farm implements like ploughs, harrows, boom sprayers, rippers and ridgers. ‘Seeds are currently being planted on 145 hectares of land.’
Nhlakanipho added this project will assist community relationships, build trust and improve the standard of living for community members in the co-op areas. ‘Looking to the future, we want to develop another 28 hectares to supply approximately 2500 small scale growers. ‘The output for this project will be 17 000 tons of new cane supply, which is equivalent to 309 hectares. ‘Our hopes are to get small scale growers back to producing 200 000 tons per annum.’
page 4
The mill is 85,981 tons of cane behind budget. The sucrose % cane is below expectation. This has a negative effect on the recoveries. The ash % cane is high and also contributes to the low Overall Recovery. There has been a significant improvement in cane quality. The rain always brings challenges in the plant in terms of chokes in the cane conveying systems. The diffuser flooding has been severe this season too. The fibre % cane is 3.09 % above budget.
This is mainly ash in the cane. The OTE is 13.07 % below budget. The LTA is also 4.91% above budget. The high OTE and LTA have a negative impact on the Overall Recovery. The BHR is 2.58 % below budget. We experience sugar quality problems at the start of the season. The colour removal chemical, Hydrance, helped dropped the sugar colour from 3000 to 1200. The low pH of the Hydrance chemical contributed to sucrose inversion. We are now using Rheoclear colour removal chemical.
The UDL has dropped significantly. The Overall Recovery is 4.9% below budget. This is a product of the Extraction and BHR. The new Reheater has improved the molasses TPD. There is better control in the flow and temperature control of C Massecuite after the installation and commissioning of the new Reheater.
Production Update
Root Cause Failure Analysis Short Course
USM staff recently completed a short
course in Root Cause Failure Analysis.
DESCRIPTION WEEK WK BUDGET VAR TODATE TD BUDGET VAR
CANE & EXTRACTION
Tons Cane 21813 28666 -6853 488898 574879 -85981
Tch 231 220 11 226 220 6
Sucrose % Cane 11.89 13.56 -1.67 12.12 13.00 -0.88
Fibre % Cane 17.59 13.61 3.98 16.35 13.26 3.09
Mixed Juice Purity (Suc) 83.78 84.92 -1.14 84.26 85.16 -0.90
Extraction (Suc) 92.71 97.14 -4.43 94.18 97.09 -2.91
EFFICIENCIES
O.T.E. 56.2 77.56 -21.36 66.63 79.70 -13.07
Lost Time % Available 9.00 9.39 0.39 14.59 9.68 -4.91
ENERGY
Steam % Cane 61.87 56.00 -5.87 62.36 56.00 -6.36
Tons Coal Burnt 84 0 -84 3634 2323 -1311
SUGAR RECOVERIES
Tons Sugar M&E 2108 3258 -1150 46177 61877 -15700
Tons Molasses M&E 791 1380 589 22020 28919 6899
B.H.R. 87.19 85.78 1.41 82.18 84.76 -2.58
O.R. 80.83 83.33 -2.50 77.40 82.30 -4.90
Undetermined Loss 2.60 1.80 -0.80 5.26 1.80 -3.46
Molasses Loss 9.78 11.01 1.23 12.14 12.00 -0.14
Latest Molasses Tpd 4.00 3.00 -1.00 3.90 3.00 -0.90
We have our own Mt. Kilimanjaro here in Zululand at the Lebombo Mountains.
Sihle Myeni (Cane Supply) is challenging other departments or division to walk from the Makhathini Flats (SSG growers), to Mkhuze (LSG/Shareholder/Haulier). According to Sihle it is about a 30km walk up the mountain, pass Bethesda Hospital, down to Mkhuze. “It’s a very tough course starting with a steep and twisty gravel road up the mountain, then a very twisty and narrow tar road pass the hospital down to Mkhuze.”
Anyone up for a challenge to complete this course in 6 hours and 7 minutes as part of a fundraiser to support a local crèche as part of the 2017 International Mandela Day should contact Sihle Myeni on 0614287961 for more information.
Zululand’s Own Kilimajaro
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usM started crushing on the 13 may 2016 (sAsA week 11) and the current MGB anticipated closing date is the 4th December 2016, which equates to 29.3 weeks. As at the end of sAsA week 29 the mill has crushed 466 527tons which is 57.2% of its estimate with a balance of 360 319tons. At the snd os september all suppliers go onto balance to deliver. This will provide opportunity for those suppliers who are behind to catch up.
Cane qualityCane quality has been particularly low this season due largely to the drought. Nevertheless both cane supply team and growers have made a concerted effort to improve cane quality. In the month of August a marked change in cane quality became apparent a change in quality figures.
Small Scale GrowersWith respect to ssG’s, umfolozi has been allocated a total of 18 million through sAsA from the Department of Agriculture and Rural Development (DARD) this season for the development of three cooperatives (umhlana, sokhulu and Mnqobokazi). The implementation of the first phase has been completed and we are busy with the implementation of second phase which involves planting of 145ha.
Cane supply Report
Variances
MGB EstDelivered to
dateBalance to
Deliver% Delivered
to date% behind mill crush
Trams (LSG & SSG) 582 246 338 261 243 985 58.1% 0.9%
Senekals 155 000 74 562 80 438 48.1% -9.1%UVS (to USM) 1 672 9 523 -7 851 569.6% 512.3%Other road 25 600 10 313 15 287 40.3% -17.0%SSG (road) 27 954 20 412 7 542 73.0% 15.8%Mposa Group 26 523 13 456 13 067 50.7% -6.5%Management adjustment -3 995 MGB Mill Crush Target 815 000 466 527 360 319 57.2%
Deliveries (SASA Week 29)
EstimatesusM’s crush as at 25 september 2016 sAsA week 29:
The Makhathini Flats with the
Lebombo Mountains in the back. On
top of the mountain is a hospital and
on the other side the town Mkhuze.
Sugar tax cracks open can of troubleNews that government plans to implement a 20% tax on sugar sweetened beverages to fight obesity has been a bitter pill to swallow, not only for the soft drink industry, but also for local sugar cane farmers.
South African sugar cane growers have grave concerns about the consequences of the significant levy on the back of the successive drought years. Many farms make a substantial contribution to the economy, mainly in the rural areas of northern KZN and sugar cane growers in northern KZN provide an estimated 17 178 jobs on farms, being seasonal, temporary and permanent, as well as an additional 68 712 direct and indirect jobs in the sector.
Hit with the drought, northern KZN has already lost approximately R736-million in gross revenue and the financial pressure have resulted in numerous job losses and high levels of indebtedness as farmers and other institutions struggle to survive. The estimated loss over previous seasons has resulted in a loss of 162 000 tons of sugar, 1 850 000 tons of sugarcane and 5 470 job losses in the larger northern KZN. Now the sugar tax blow is expected to leave Zululand sugarcane farmers with between 15% and 30% reduction in net farm income.
On a national level, the South African Cane Growers’ Association (SASA) is also anxious. SASA stated the volume of sugar supplied by the industry to the Sugar Sweetened Beverages (SSBs) sector is approximately 600 000 tons per annum, making it the largest single sector for the industry in terms of sale.
With regard to production, approximately more than 100 000 hectares under cane are necessary to meet supply to the SSBs. They estimated the sugar market subject to tax on SSB for the 2016/17 season would be approximately 624 886 tons. Working on a price elasticity of -1.299 (20% increase in SSB price leads to a drop of 26% in sugar in SSB), this would equate to a loss of the local market of 162 000 tons of sugar, 1 400 000 tons of sugarcane, 5 817 job losses with a wider impact on 58 174 South Africans.
SU
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page 6
Absenteeism AwAreness: You can’t have a million rand dream with a minimum wage work ethic.
SUGA
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DUST
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FOR
ALL S
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Man
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Uni
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App
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hav
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SCIE
NCE,
EN
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, A
GR
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or
Th
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OF
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UG
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M W
OR
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who
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cane
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rem
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cons
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Clo
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dat
e: W
edne
sday
, 3
0 N
ovem
ber
20
16
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vers
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AG
RIC
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BU
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Can
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win
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aZul
u-N
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and
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mal
anga
•B
ursa
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are
onl
yav
aila
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for
stud
ies
att
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O
wen
Sitho
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f A
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Ced
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Col
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of A
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Uni
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of F
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Har
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Uni
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App
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r:
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tere
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hav
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low
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iplin
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SCIE
NCE,
EN
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, A
GR
ICU
LTU
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or
Th
eCH
ILD
OF
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UG
AR
CA
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M W
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KER
who
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ican
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•D
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lican
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ndfi
rst
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rin
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cons
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, 3
0 N
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page 7
Absenteeism AwAreness: the speed of the boss is the speed of the team.
page 8
No ‘blues’ for these guys only true grit and pride in what they do. The Fabrication
staff love their plant and make sure it is kept clean with regularly sweeping.
Heading off for their walk in the plant are Zwelakhe Ncube (left), Peter Adcock and Adey Wynne.
Showing off their immaculate workshop
before taking a walk into the plant are
Adey Wynne (left), Jethro Pydanna, Vukani Mbhele and Jacques du Preez.
Clean Sweep...
A Big Shout Out To All USM StaffOnce a month CEO, Adey Wynne walks and talks to staff in the factory to learn more about what their jobs entail and how a typical day would unfold for them. ‘I learn a lot and have so much appreciation and understanding for the hard work that goes into making our awesome sugar. Staff are proud of what they do and it makes me feel proud to be part of the team too.’ Adey Wynne, CEO.
usM bent on beating the drought There is no question the persistent drought dealt a heavy blow to the sugar industry, but usM will come out on top with its crop. Through basic water saving initiatives, re-using the resource where possible, cutting costs and implementing promising projects, Chief Financial Director Anthony Fowlds believes prospects are bright for sustainable profitability next year.
‘One of the biggest challenges to usM has been the reduced cane available to crush, severely stressed by the drought. ‘This has caused difficulty with maximising sugar extraction and has also affected the sugar colour negatively. ‘Fortunately, the factory team has been able to resolve the colour issue and usM is once again producing high quality VHP brown sugar that is sought after by the south African market. ‘And while cane quality is outside of the mills control, there has been constant communication with growers and as a collective there have been great improvements in getting the best possible quality of cane into the mill to crush. ‘ With the usM factory being the main consumer of water, teams have reduced washing in the plant to use less water.
Effluent is also now going into the smuts dam to avoid having to use river water to pump out any liquid waste. Meanwhile, all forms of water usage are monitored and documented on a monthly basis and a tiered charging system has been implemented for water users in line with municipal principles of encouraging less water usage.
‘Our goals are to maximise available cane crush, maximise sugar make with available cane, cut all non-essential expenditure and continue to invest in long term value-adding projects like plant recapitalisation,’ said Anthony. ‘The focus is on two areas - the plant and usM employees. ‘The plant management is being looked at through the recapitalisation project with roughly three quarters of the funds to still be spent. ‘Then there are initiatives such as project uptime looking at people and the plant. ‘We are also looking into employees’ training needs and upskilling.’
Anthony highlighted the main aim this year is to crush all available cane in the season and to maximise sugar make to get the business as close to a breakeven profit as possible. But by next year, management forecasts a larger crop with better quality cane that will allow the interventions made in people and capital to surface and return usM to sustainable profitability. ‘Despite the drought conditions, usM is spending on equipment and people to ensure the long term sustainability of the mill.’
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Giving rise to Project uptimeEvery minute crushing cane will count as the usM engineering team prepares to introduce Project uptime. The project will entail periodic audits of the Mill’s current maintenance tactics to determine how usM is performing in comparison to international standards.
‘Uptime will assist us implement world class practices to achieve the best asset care for the company,’ said Mechanical Engineer Siphamandla Msane.
‘It is all about enhancing the uptime of the factory, in other words to ensure plant availability, efficient production and minimising plant stoppages due to breakdowns. ‘This will ultimately ensure more cane is crushed, which in turn means more profit.
‘We are really excited about this project. ‘So much can be achieved with our assets and with our old sugar mill by applying the correct maintenance techniques. ‘At the end of the day, this is crucial for the sustainability of our plant.’
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With a highly motivated team on constant standby to fix a leak, usM never has to worry about excessive waste.
The Leak Busters, led by supervisor Bheki Mdletshe, are mainly maintenance employees in the Fabrication and Rigging Department at the Mill. They respond to calls from the Operations, Process and Maintenance teams to fix anything that carries water, steam, juice and sugar, including pans, crystalisers, steam pipes and water pipes.
‘steam stops and rain stops is this team`s busiest time when they do an average of 12 hours per person in an eight-hour day,’ said Fabrication Manager, Albert Peters. ‘This team members pride themselves on an above average response time and don’t believe in leaving jobs behind at chaila time!
‘Their skill level also received a nice boost in the past year – the team’s assistant has done training up to B3 level, and the B3`s up to B5 level training. ‘This enables the team to upgrade people from within the team when the workload is up and extra
recourses are needed like on steam stops.’
Also an important part of the team is the Riggers, who assist the Leak Busters by building scaffold all over the plant to provide access to the affected equipment. They also lift pipes, plates and rig these into position for the maintenance team as well as supply them with the necessary lifting equipment to do the repairs in the plant.
In the Fabrication Workshop, the Mill have the Fabricators, who are boilermakers led, until recently, by steve
Cruden. They fabricate all the piping, tanks, guards, conveyors in support of the Leak Busters. All new piping made up by the Fabricators is passed on to the team who install them in the plant. ‘Together this team make up a very important part of usM,’ said Albert.‘They play a huge part in bringing down the LTA and increase the overall time efficiency of the Mill. ‘By repairing all steam leaks, they save energy from leaking out the pipes, which leads to less fuel burned to generate steam. ‘They also reduce sugar spilling onto the floor.’
It is all fair game at usM. The Department of Labour recently audited the Mill and confirmed we are substantively in compliant with the Employment Equity Act.
HR Executive Vusi Tembe said the company’s recruitment processes have been aligned with the amended act to ensure continued equality. ‘Our employment equity practices are important to promote equal opportunity and fair treatment. ‘We want a workplace free of discrimination through the implementation of affirmative action measures for suitably qualified people from designated groups in all occupational levels.‘usM has a number of employees with disabilities and we will always strive to see that all employees are treated equally, regardless of race or gender. ‘We have company rules and procedures to ensure that management has been trained on diversity management to stay compliant with the act.’
Never fear when the Leak Busters are near
Equity at USM gets thumbs up
These are the USM LEAK BUSTERS who fixes anything that carries water, steam juice and sugar in above average response. This team plays a huge part in bringing down Lost Time % Available (LTA) and increasing the Overall Time Efficiency (OTE).
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Absenteeism AwAreness: DO what is right. nOt easy.
Peter Adcock, Maintenance Foreman- Power Gen, shared this story of true camaraderie and teamwork with umbonowethu.On 21/9/2016 one off the wheels on the scratcher bearing collapsed, without having to be instructed my team immediately responded, they not only were successful in doing the job in a speedy fashion but the following points stood out.
They responded as a team which is commonly referred to as TEAMNEss ABOVE THE LINE. They made a plan to get the job done with great commitment. The feeling of togetherness was very evident which sent sparks of energy around them. Their ABOVE THE LINE approach is highly commendable. They decided to take their meal break later in order to finish the work at hand. As a leader I am blessed with a team with this level of commitment. I also need to mention my colleague Johan Visagie, Maintenance Foreman - Front End who heard this on the radio and immediately responded by rushing over to help and he was a great help to our team. This type of spirit is a great example to us all and I am so very proud to be a part of such a group of people.
We would like to share your story of TEAMNEss ABOVE THE LINE. submissions to [email protected]
1. TREES PRODUCE OXYGEN – A single tree produces approximately 260 pounds of oxygen per year.
2. TREES CLEAN THE SOIL by filtering sewage & farm chemicals, reduce the effects of animal wastes, clean roadside spills & clean water runoff into streams.
3. TREES CONTROL NOISE POLLUTION as effectively as stone walls.
4. Trees Slow Storm Water Runoff by reducing flash flooding e.g. a Colorado blue spruce (either planted or growing wild) can intercept more than 1000 gallons of water annually when fully grown.
5. TREES ABSORB CARBON DIOXIDE as much in a year as a car produces while driving 26,000 miles.
6. MATURE TREES CLEAN THE AIR by removing almost 70 times more pollution than a newly planted tree.
7. Trees provide summer shade and wind buffering that can reduce annual heating and cooling costs by billions of rands.
8. Trees Act as Windbreaks by lowering home heating bills up to 30%, reducing snow drifts and help keep precious topsoil in place.
9. Trees Fight Soil Erosion and conserve rainwater. They reduce water runoff and sediment deposit after storms.
10. TREES INCREASE PROPERTY VALUES by up to 14%.
Trees are a national heritageUSM celebrated Heritage Day on Monday 26 September by planting two Natal Mahogany trees at the USM Village. These trees will grow to provide ample shade for the residents of the village. At USM trees are seen as a NATURAL HERITAGE because they are the longest living organisms on the planet and one of the earth’s greatest natural resources. Here are some reasons as to why trees are so important to us;
Never, Ever Give Up
Displaying the ultimate TEAMNESS ABOVE THE LINE recently during a breakdown is (back) Curon
Horsely, Bhekani Dlamini, Peter Adcock, Zwelakhe Ncube and Sibongiseni Nkabane (front).
page 12 Published by: Umfolozi Sugar Mill +27 (0)35 550 7700Writing, Layout & Design: SeaFrog Communication +27 (0)79 495 7126
usM sTAFF’s 67 MINuTEs ON MANDELA DAY
actions are in alignment with the needs of the community in the area
where the mill operates and each one of our staff’s contributions, no matter
how big or small goes a long way in fulfilling those needs. This year usM
donated two JoJo Tanks to the sqondokuhle Early Childhood Development
Centre on Friday 15 July.
In a world where knowledge truly is power, education and literacy are the
basic building blocks that unlock the gates of opportunity and success. Our
focus on crèches in our ssG areas will leave a legacy behind. We all have
a responsibility as parents, as caregivers, as educators, as leaders and as
citizens, to instil in individuals, children and communities the critical drive
for building and maintaining their literacy and learning so that we can give
them the chance to fulfil their dreams. Let’s lead through education.