Page 32 - HRC_AR2020

30 I 2020 ANNUAL REPORT I mANAgEmENT DISCUSSION & ANALYSIS

PERFORmANCE REvIEW

STRATEgIC DIRECTION 2 STRATEgIC DIRECTION 1
Enhance human Resource (hR) Function Capability and Continuous Improvement in Plant Availability
Execution
The following activities were carried out to improve plant
To better enhance the depth and width of our HR specialists’ availability for the year under review and contributed
capabilities, a HR Business Partnering approach was adopted, to our achievement of 95.4 per cent plant availability:
and a Centre of Excellence (COE) established. This enabled • Strengthening management process with prioritisation
the Company’s HR specialists to contribute more dynamically given to top threats.
to business units by focusing on strategic and proactive work
matters, and developing policy and processes to support • Following up on the asset risk prioritisation process
the business. and establishing four reliability task forces to focus on
Maintenance Execution (ME) Process Improvement, Pump
STRATEgIC DIRECTION 3 and Motor Rework Improvement, Chloride Management,
Strengthen Employee value Proposition and Talent and Instrumentation Protection Function (IPF) robustness.
management
• Improving jetty reliability.
Employee turnover decreased in FY2020. HRC continued • Execution of the Asset Rejuvenation Master Plan (AMP)
to provide job stability for all employees and invested in to better manage obsolescence.
strengthening our Employee Value Proposition through
training and development. • Engineering Key Performance Indicator (KPI) monthly
reporting for gap analysis and improvement tracking.
Employees benefited from a total of 17,746 training
hours conducted during the year, an average of 48 hours • Sharing of knowledge and learnings from incidents to
per employee. This is a marked increase from FY2019 as prevent future recurrence.
on-the-job training was also added to the total training hours
for 2020. There was an escalation of online training classes, STRATEgIC DIRECTION 2
encompassing both technical and non-technical skills, to Continuous Improvement in Product Quality
cater to the increased number of work from home employees.
There were several highlights achieved in being responsive
Another key effort made towards enhancing talent to meeting customer expectations and product quality
management was a thorough review and assessment of the requirements during the year under review. As jet fuel demand
current talent pipeline. This has resulted in the identification had dropped significantly due to the COVID-19 situation,
of key talents for future career paths and will positively immediate efforts were undertaken to maximise blending of
impact HRC’s business continuity and sustainability plans. jet fuel components as diesel to ensure the refinery continues
to produce products that are in line with the communities’
For more details on our Human Resource initiatives, please refer and market’s needs.
to page 43 of our Sustainability Report 2020.
In addition, the assessment and execution of product
quality certification for U95 Sulphur and Gasoil Distillation
Operational Excellence specifications via on-line analysers were completed in the first

In the refining business, operational excellence encompasses quarter. This provides enhanced product quality assurance
reliability, effective work processes, cost efficiency, refining and is also favorable from an economic angle to the refinery.
margins and product quality. HRC’s on-going improvements There were three (3) Product Quality Reliability Incidents
and focus on defect elimination continued to ensure good (PQRIs) in FY2020. However, these were identified and
business performance. HRC generally experienced high addressed early on so all customers continued to receive
reliability performance for most of the year but could not meet products that met their expectations. Zero product Quality
the target set for unplanned downtime (UPDT) of 2.6 per cent. Incident was targeted and achieved through key product

4.6 per cent of UPDT was recorded in 2020 due to new quality initiatives such as:
challenges that happened for the first time in HRC’s history, • A Process Effective Review (PER) to assess the site’s Ensure
such as the LRCCU experiencing an all-instrument air Quality Product (EQP) process.
compressor trip simultaneously. As a learning organisation
with mature experience and work processes, work was done
to implement the right solution and prevent re-occurrence.