Page 38 - HRC_Annual_Report_2023

36 About HRC Value Creation Management Discussion Leadership
& Analysis

FY2023 STRATEGIC REVIEW

Strategic Initiative 3 (continuation from previous page)

Guided by a roadmap that was supported by the QUARTER 2, 2023:
Management, the following CI milestones were achieved in - Conducted focus group discussions
FY2023: Sessions were conducted with various departments to
identify success measurements of effectiveness and
QUARTER 1, 2023:
- CI governance framework and blueprint in place efficiencies. These were captured in a value chain process
Upon completion of pre-programme assessment, chart on the Targeted Organisation Capability Map.
HRC scored an operational excellence maturity level at QUARTER 3, 2023:
3.0 out of 5.0 with a Lean Diagnostics score of 14.8 - Training module development
out of full score of 20. This provided understanding Customised training contents, tools and processes were
of current issues and gaps to refine an effective CI developed for the Kaizen programme which provides
Blueprint strategically aligned to HRC’s business plan quality awareness, skills and knowledge needed for specific
and Operational Excellence Framework. The blueprint implementation adoption.
provides a detailed execution plan supported with
governance and programme monitoring mechanism.
QUARTER 4, 2023:
- Appointment and onboarding of 12 Quality - Kaizen programme development
Champions The Kaizen programme has also been devised and
The Quality Champions have defined roles and developed to reach out to all staff to find areas for
responsibilities to drive the implementation and leverage improvement that will ensure the refinery’s overall success.
CI in their departments.
- Launch of CI poster design
Staff were engaged through the CI Poster design
competition to harness more ideas and perceptions,
while enhancing Company-wide awareness.

Strategic Initiative 4

Encourage pursuit of margin improvement tactics savings of around USD6.8 million, depending on their
utilisation. The BIP tactics will result in an increase in
Even amidst the added pressure of TA 2023 activities, refinery crude oil processing capability, reduce product
HRC continued to deliver on our Business Improvement quality giveaways, increase gas oil production, and crude
Plan (BIP) in the stipulated time, due to the hard work and diversification to allow us the flexibility to choose cheaper
dedication of our employees.
crudes.
A total of eight BIP tactics were executed during the year
to enhance the margin of the refinery. These will be Moving forward into 2024, nine more tactics are set as
operationalised in FY2024 towards an estimated potential target for execution, with the potential to encash margins of
USD5.2 million in 2025 depending on utilisation.

2024 Operational Excellence Priorities:
• Execute nine identified 2024 BIP tactics
• Deliver identified strategic project especially SBM (single buoy mooring) changeout and anchor chain replacement to
eliminate integrity risks associated with ageing marine assets