Tomago Aluminium

Integrated management system helps fuel high performance

Company overview
Based in Newcastle, New South Wales, Tomago Aluminium is the second largest aluminium smelter in Australia and contributes significantly to Australias position as the worlds third largest aluminium exporter. With annual sales of some $800 million and more than 1,000 employees, Tomago has a reputation as one of the worlds most efficient and low-cost aluminium producers. The company, owned by a consortium of Alcan, CSR and Norske Hydrothe aluminium industrys major players, produces aluminium mould ingots, rolling slabs and extrusion billets, used in industries as diverse as building and construction, transportation, consumer durables, packaging, electrical supplies and machinery and equipment.

Business challenge
Tomago strives to continuously improve production and IT capabilities to ensure that it can serve a growing global demand. Particularly, the company wanted to empower its entire organization to be proactive about achieving its ambitious production target of 517,000 tons of aluminium each year an increase of 14 percent from the previous level. Given the intensity of competition in the aluminium marketplace, Tomago decided to

partner with Accenture to enhance key business processes as well as design and implement a scalable, state-of-the-art SAP-based integrated management system. The SAP-based solution would include three components: an employee portal as a single internal and external resource to give staff easy access to and retrieval of important business information; the latest SAP applications, including human resources, document management, knowledge management and business reporting tools; and a realtime plant information capability to better report on areas such as metal flow, casting and production. Tomago and Accenture expected these new capabilities to enable maximum production, reduce losses and improve employee engagement. Tomagos plant managers and employees would have complete access to appropriate information for each respective area of responsibility. Likewise, corporate executive management would gain the deep insight into production volumes, efficiency, product quality and environmental emissions required for faster, more effective decision making. The solution would also provide for multimillion dollar cost reductions along with significant return on investment (ROI).

Technology components
SAP

ERP including: - Asset and Investment Management - Materials Management - Service Management - Document Management - Knowledge Management - Finance - Human Resources - Payroll - Plant Maintenance SAP NetWeaver Portal SAP NetWeaver Business Intelligence SAP Tutor SAP InfoPak

Choice of Accenture
Tomago chose Accenture for its extensive industry expertise, proven experience and deep multidisciplinary business and technology capabilitieskey attributes endorsed by its award-winning implementation at QAL Alumina Ltd., a major supplier to Tomago of alumina, which is the key raw material used to make aluminum.

The team also built a third-party warehouse management system to help Tomago employees manage key warehouse functions, using iris scanners to manage the warehouse down to the individual bin. Additionally, Tomago and Accenture built a range of online support tools, based on SAP Tutor and SAP InfoPak, that are accessible through an interface called TOM, or Tomago Online Magician. Along with overall project management support, Accenture provided system testing, technology infrastructure and architecture and user training. The systems custom architectures will support and accommodate targeted efficiency gains, consistent growth and future market expansionbalancing the needs of today and tomorrow, a trait of high performance businesses. Phil Hughes, project manager for the Tomago Integrated Management System, said: The new system is simple to use and easy to manage and run. It provides both managers and employees opportunities to reduce the time spent on administration and be more efficient and effective on the job, while improving customer satisfaction and providing long-term cost reductions to the business.

tools to manage and control sensitive and critical business information, such as quality and safety, throughout the plant. Over the next 10 years, Tomago estimates that its new integrated management system will save the company $28.5 million and help sustain its leading position in the aluminium industry using the tripartite approach of excellence in business leadership, business process effectiveness and technologydriven competitive advantage. To learn more about how Accenture is helping organizations leverage SAP to become high performance businesses and governments (and how we might help you), contact Accenture at www.accenture.com/sapgetcreative.

About Accenture
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 152,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended August 31, 2006. Its home page is www.accenture.com.

High performance delivered

With the new integrated management system, Tomago is continuing to take steps to extend its high-performance business capabilities by using IT as a strategic enabler. Tomagos chief financial officer, Roy Gellweiler, said: Our integrated management system, TIMS, is a key factor in our effort to drive improved performance from our operations, ensure the longevity of our manufacturing plants and maximize the value of our industry know-how. Today, Tomagos people can access precisely the information required to do their jobs effectively, whether in the management suite, administrative offices or the manufacturing plant. For example, Tomago employees can now access selected suppliers websites via the new system and purchase goods through the Internet with appropriate purchasing information automatically imported to SAP R/3. The new system also makes it possible for Tomago to use innovative document and knowledge management

How Accenture helped

Working collaboratively with Tomago, Accenture worked to first re-engineer and design processes around key functions such as materials and service management, warehouse management, and plant maintenance. The team then designed the software configuration for SAP R/3 and key components of SAP NetWeaver, and custom developed required interfaces and functions. Accenture provided extensive know-how in a template form, customized specifically for Tomago. The employee selfservice portal, built using SAP NetWeaver Portal, integrated 10 separate SAP modulesincluding SAP NetWeaver Portal, SAP Document Management, SAP Knowledge Management and SAP NetWeaver Business Intelligenceas well as a number of legacy applications.

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