James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor/Analyst USA Tour September 2012
12 slides from James Hardie Industries's conference presentation, Sep 12, 2012
Slide 1: Investor/Analyst USA Tour September 2012
Steve Conaway Manager Ryan Kilcullen Engineer Investor/Analyst USA Tour & September 2012 Exhibit 99.3
Slide 2: Supply Chain Structure
Order Entry Production Planning Procurement Manufacturing Distribution Network Transportation Demand Planning Capacity Matching Made to Inventory Made to Order JH Warehouses Customer Channel VMI Reload Centers Customer Orders Distribution Replenishment Orders Rate Optimization Mode Optimization Spot
Slide 3: Lower vs Higher Complexity Supply Chain
Lower Complexity Supply Chain Higher Complexity Supply Chain SUPPLY CHAIN Primed Supply Chain ColorPlus ® Supply Chain Relatively small SKU set Low complexity orders Made to inventory 14 day lead times Full pallet orders 7 manufacturing locations Large SKU set High complexity orders Made to order 8
Slide 4: Evolution of Order Entry
Manual Order Entry EDI HardieLink ORDER ENTRY Evolution of Order Entry Gives customer ability to order material, check order status, obtain pricing and view technical support / training real time Option to use EDI which provides immediate feedback on order errors Electronic Data Interchange Allows f
Slide 5: Production Planning: Demand Planning
- # and Location of Manufacturing Sites - Basis is Plan for Category and Market Share Growth along with Housing Market Assumptions - Capacity and Product Specific Additions - Basis is mid range demand forecast - Sales and Operations Planning Process - Monthly review - Capacity Control Charts - Weekl
Slide 6: Connecting Planning to Capacity Management
CONNECTING PLANNING TO CAPACITY MANAGEMENT Week Week Week Week Week Week Manufacturing Block Schedule Capacity Control Chart Upper Control Limit Lower Control Limit Target NC C NC C NC NC NC NC C C C C
Slide 7: A Sample of Pilot Program Results
A SAMPLE OF PILOT PROGRAM RESULTS Pilot Plant Weekly On-Time Service Results Pilot Plant Make-Item Inventory Level Pilot Plant Sleeve Consumption Time Time Time
Slide 8: Distribution Network
DISTRIBUTION NETWORK Reload VMI Plants
Slide 9: Transportation
TRANSPORTATION Primed Products ColorPlus ® Technology Products 7 Manufacturing Locations Full Truck Loads <500 mile shipping radius 4 Manufacturing Locations Less Than Full Truck Loads >500 mile shipping radius Multi-stop loads Higher rate lanes / regions Cross-docking
Slide 10: Mode Optimization
MODE OPTIMIZATION Rail and Truck Truck, Rail, Intermodal Utilize rail/intermodal for long distances to reload distribution centers Truck to customers Cross dock to minimize necessary inventory at reload distribution centers
Slide 11: Multi-Stop Optimization
MULTI-STOP OPTIMIZATION Bead Approach Lollipop Approach
Slide 12: Questions
Questions
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