James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2017)
30 slides from James Hardie Industries's investor day presentation, Sep 14, 2017
Slide 1: Operations
OPERATIONS Ryan Kilcullen & Dave Merkley September 2017 Exhibit 99.8
Slide 2: Agenda
PAGE AGENDA 2 Our Zero Harm Commitment Manufacturing Innovation & Operational Excellence Tacoma Greenfield Update JH Supply Chain Advantage
Slide 3: Journey to Zero Harm
() sames Hardie JOURNEY TO ZERO HARM
Slide 4: What Does Our Journey Look Like
PAGE WHAT DOES OUR JOURNEY LOOK LIKE 4 Zero Harm Safety Performance Driven by a Culture Shift that… Ensures that safety is our first gate Thrives on leadership commitment and visibility Empowers/engages all employees to proactively participate Results in a predictive approach to safety management in
Slide 5: Zero Harm Approach
PAGE ZERO HARM APPROACH 5 Safe People • Engaged, Empowered and Trained • Visible Leadership • Committed 24/7/365 Safe Plants • Clean & Organized • Facilities that Represent “The Brand” • Capable Machines and Processes Safe Systems • Real-Time Feedback • Data/Tools for Continuous Risk Reduction • Ver
Slide 6: Safe People
PAGE SAFE PEOPLE 6 A key component of our culture shift is to partner with world class safety programs that support plant floor ownership in safety… Peer-based observations Self-triggering assessments 3rd Party verification of JH execution
Slide 7: Safe Plants & Safe Systems
PAGE SAFE PLANTS & SAFE SYSTEMS 7 Safe Plants Safe Systems Safety as a core philosophy in plant & process design Significant reduction in operator-to-machine interface Facility maintenance to a JH brand standard Predictive measures of employee engagement Safety data management system World Class tra
Slide 8: Zero Harm Summary
PAGE ZERO HARM SUMMARY • We are fully committed to a significant culture shift that results in JH becoming a World Class safety organization • Core elements of our program are visible leadership commitment, operator empowerment and predictive systems • One year in, significant progress has been achi
Slide 9: Delivering on the Potential of JH Manufacturing
DELIVERING ON THE POTENTIAL OF JH MANUFACTURING
Slide 10: Manufacturing Advantage
PAGE MANUFACTURING ADVANTAGE 10 Unique throughput advantage in our manufacturing processes Engineered scale creates labor and capital advantage Flexible manufacturing achieves low unit cost through market cycles JH manufacturing: Major lever in our competitive advantage Proprietary technology delive
Slide 11: JH Manufacturing Evolution
PAGE JH MANUFACTURING EVOLUTION 11 Historical focus on step change innovation has delivered significant business value 4x4 FC Line 5x6 FC Line 5x9 FC Line She et Ma ch ine Th ro u gh p u t Platform Advancement with continuous improvement focus Actual machine performance Machine design potential Who
Slide 12: JH Reaching Its Full Potential
PAGE JH REACHING ITS FULL POTENTIAL We have created a continuous improvement organization, the sole focus of which is to shift JH manufacturing from… Reactive Operations Predictive Manufacturing Enabled by… Dependence on operator intervention Lean standard work & process control Maintenance on equip
Slide 13: Sample of Continuous Improvement Initiatives
PAGE SAMPLE OF CONTINUOUS IMPROVEMENT INITIATIVES 13 Creating a JH Approach to Lean Manufacturing Establishing Foundational Capabilities in Reliability Leader Standard Work Standard Work Initiative Visual Workplace Management Greater consistency within plants, and across our network, will significan
Slide 14: JH Manufacturing Step Change
PAGE JH MANUFACTURING STEP CHANGE 14 We have also doubled down on our ability to deliver break through engineering step change in all areas of JH manufacturing Next Generation Hatschek New Product Enablers Mfg Platform Development Step innovation in… …enables break through progress JH Man u fa ct u
Slide 15: Step Changing the Hatschek Process
PAGE STEP CHANGING THE HATSCHEK PROCESS 15 Current Speeds vs. Nameplate Enabled by step change innovation… • Significant increase in drainage rate • Raw material formation modifications • Felt technology innovation • New approach to sheet forming 5x6 Nameplate Textured Plank Product With Speed Disco
Slide 16: Manufacturing Platform Step Change
PAGE MANUFACTURING PLATFORM STEP CHANGE 16 Platform A Platform B Platform C Manufacturing platform innovation has the potential to unlock significant process, product and cost levers in fiber cement manufacturing. Enabling Product Attributes Enabling Total Cost Optimization Enabling New Products Lon
Slide 17: Manufacturing Capability Summary
PAGE MANUFACTURING CAPABILITY SUMMARY • We have an established history in step change manufacturing innovation • We are adding to and enhancing the talent and capability of our engineering teams to accelerate the pace of step change in JH • The value associated with continuous improvement has increa
Slide 18: Tacoma Greenfield Core Concepts
TACOMA GREENFIELD CORE CONCEPTS
Slide 19: Tacoma Expansion – Site Overview
PAGE TACOMA EXPANSION – SITE OVERVIEW 19 • Nameplate Capacity – 300 Mmstdft/year • Capabilities – Plank, Backer, Heritage, ColorPlus® Technology • 130 Employees at full production • Site benefits • Low input cost • Proximity to growing markets
Slide 20: Tacoma Expansion
PAGE TACOMA EXPANSION 20 Q1 FY18 Building Erected Q4 FY18 Start-Up Q2 FY19 Break Ground Install Complete 85% Design Capability Q3 FY18 Q1 FY19 Equipment Install Commission Timeline Update People Operational Zero Harm trained – Day 1 Network-wide staffing plan Building on existing Tacoma base Maximiz
Slide 21: Tacoma Expansion – Pre-Autoclave Concepts
PAGE TACOMA EXPANSION – PRE-AUTOCLAVE CONCEPTS Safety Integrated into Design 3rd Party Safety Design Consultants Large Reduction in Human/Fork Lift Interface Housekeeping Integrated into Design Material Handling Step Change Zero Forklifts from Stacker to Finishing Enables Building Space Optimization
Slide 22: Tacoma Expansion – Post-Autoclave Concepts
PAGE TACOMA EXPANSION – POST-AUTOCLAVE CONCEPTS Safety Integrated into Design Focus on Operator Access & Work Floor for Safe Operation Total Plant Product Flow Designed to Minimize Human Interface Coating Line Process Step Change Integrated High Speed Break Out Line Nested Coating Lines Enabling Ope
Slide 23: JH Supply Chain Evolution
() sames Hardie JH SUPPLY CHAIN EVOLUTION
Slide 24: JH Supply Chain Overview
PAGE JH Supply Chain Overview 24 Procurement Network Planning Outbound Freight Channel Management Production Scheduling Customer Experience A fully integrated value chain that begins with customer value creation… ...and has capabilities that create a substantial competitive advantage: – Highly integ
Slide 25: JH Supply Chain – Capability Advantage
PAGE JH Supply Chain – Capability Advantage Automated Order Taking Software Sequential low cost tendering for delivery Optimization Planning Software builds & aggregates large production runs System Generates VMI Replenishments Trucks TMS Software combines job packs and VMI replenishments to optimiz
Slide 26: Capability Investments to Enable Growth
PAGE CAPABILITY INVESTMENTS TO ENABLE GROWTH 26 An expanding network enables a variety of optimization levers… …requiring a new level of network planning capability to… Achieve the true lowest landed cost network Fully exploit the scale of our VMI & reload network Appropriately level load production
Slide 27: Enabling Growth "Inside the Walls"
PAGE ENABLING GROWTH “INSIDE THE WALLS” 27 Increasing plant scale & value-add processing is changing our plant size & flow… …requiring new capabilities inside the walls… • Product flow optimization • Automated material handling • Warehouse management system • Work design & flow analysis We are inves
Slide 28: Freight Outlook
PAGE FREIGHT OUTLOOK 28 Continued economic recovery Market supply/demand dynamics continue to create upward cost pressure… JH continues to view freight capability as a core competency and expects to offset market pressure through continued performance gains Market Pressure Driver shortage Decreasing
Slide 29: Supply Chain Summary
PAGE SUPPLY CHAIN SUMMARY • We continue to invest in supply chain capability to enable customer value creation at an optimized unit cost • Our current efforts are focused on leveraging the full benefit of our network and plant scale • Freight market headwinds persist, but we are well positioned to o
Slide 30: Key Messages
PAGE KEY MESSAGES 30 • We are becoming a Zero Harm organization • Step change innovation in manufacturing will continue to deliver significant business value • We are increasing our focus on continuous improvement to become a more predictable manufacturer • Tacoma Greenfield on track and includes st
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