Newsletter
Fit 4 Future
F4F Programme Update
The F4F programme was developed to identify initiatives and deliver value in a structured manner supported by governance processes.
For a recap, the following initiatives fall under the F4F umbrella, which are financially tracked:
Over the past few months, 12 initiatives were planned, with nine initiatives implemented across the business. The safety enabler and RDO Office have already been put in place, whilst the balance of the initiatives is still closely monitored.
Optimise MCP Yield
The initiative expected to increase sucrose production through specific initiatives and incorporating two farms previously outsourced. We are behind the forecast mainly due to the harvest programme.
R16M
R9.2M
Reduce Recovery Losses
Our sites have adopted a “Back to Basics” approach for recoveries. Enablers to support the initiative include: embedding the operating model, implement shift handover and MDT meetings, KPI cascades and use of visual management.
All business units were affected at the commencement of this financial year (fire cane, frost, re-heater issues) and as a result continue to track behind prior year actuals.
R49m
(loss)
R139m
(loss)
Reset Procurement Spend: External Spend
The top five external spend initiatives account for almost 80% of the forecast savings. These initiatives include; coal and woodchips (buy better), boiler efficiency and steam optimisation (spend better), outbound logistics (buy better), yeast optimisation (spend better), cane haulage (buy better).
Work is still on-going on the export of power from Eston site, energy and mechanical consumables.
The coal and woodchips and discretionary allowance initiatives have moved into the business as usual - processes are integrated into everyday work and budgets are aligned.
R46.1m
R40.7m
Non - shift overt
Increased season crushing length (shorter off-crop) has led to significant cost increases in non-shift overtime.
We need to explore opportunities to do in-season work in preparation for off-crop
We look forward to your support on these initiatives and the achievement of their deliverables.
Please feel free to reach out to us on fit4future@Illovo.co.za should you have any questions.