GMS Engineering & EHS Town Hall April 2010

Agenda

1. 2. 3. 4.

Introduction GMS Engineering Strategic Themes EHS Key Programmes Engineering Around GMS:

5. 6.

Engineering Capability ETC India Maintenance Efficiency Consumer Health

Recap Q and A

GMS Above-Site Engineering & EHS organisation

GMS Engineering & EHS Head

GMS Engineering Services Lead

Primary Control and Instrumentation CoE Operational Engineering CoE

Capital Projects Shared Service

GMS EHS Services Lead

Programme Management Project Control

Primary EHS Shared Service

Primary Operational Engineering Shared Services

Engineering Technical Shared Services

Regional Project Leads

Primary Process Safety Project

Site Services Shared Service

Environmental Performance CoE

Regional Project Managers Engineering Project Management Pool Capital Procurement

EHS Shared Sevice

GMS Engineering Strategic Themes

One Engineering community

Increasing Maintenance effectiveness

Underpinning sustainability

Building Global Engineering Capability

Tracking performance Engineering Safety and standards Business value from capital

CUT

GMS Engineering Links to GSK Strategy

Building global engineering capability One Engineering Community

Business Value from Capital

Increasing maintenance effectiveness

Engineering safety and standards

Underpinning sustainability

Tracking Performance

GMS EHS Programmes

Key EHS Programmes

1. 2. 3. 4.

Living Safety Process Safety Zero Access Respirator Free Red Task Elimination

5.

Professional Certification

Living Safety Underpinning all EHS Performance Improvement

What are the key elements of Living Safety?
Train Facilitators and conduct Gap Analysis with Site Leadership Team Appoint a Site Steering Team Use Workshops and/or Questionnaires to explain the desired behaviours and identify gaps Select actions from existing Toolkit or generate own solutions

What are the key behaviours?

Standards Communication Risk Management Involvement

What is expected of EHS/Eng Professionals?

Participate and get involved understand the Living Safety Programme at your site Set high standards Lead by example Challenge risk

Process Safety EHS and Engineering Driving Improvement

Primary Technology Sites

The process safety programme implemented in 2009 continues with a focus on risk mitigation and reduction Governed through the API Manufacturing EHS Board

Standardised site Process Safety Plans in place and tracked

Five Process Safety Performance Indicators (PSPIs) tracked monthly CAPA remediation and PS risk reduction (ongoing) Secondary and Consumer Sites

A standardised Process Safety assessment and control programme is being launched during 2010 This will be focused on needs of Secondary and Consumer Operations Qtr 2 2010 Questionnaire / Survey to take place Qtr 3 2010 Detailed plan development (e.g. Dust Collectors, Fluid Bed Dryers)

Zero Access
Programme support in place Chris Hurst GES 110 Machinery Safety Ed Rohowetz and Ricky McGowan now part of GMS EHS Shared Service supporting Zero Access 3-year project with the following deliverables 1. Upgrade physical guarding to Zero Access standard. (Engineering) 2. Upgrade Lock-out/Tag-out (LOTO). (Engineering / Operations) 3. Enhance site capability and systems to ensure improvements are sustained. (Living Safety Behaviours/Systems/Training) Programme Success depends on Living Safety Values

Respirator Free - Red Task Elimination 2010

GMS Task Status Summary end March 2010 (~3000 tasks)
1% 10% 7%
Uncharacterised
Respirator free
Respirator free - partially characterised

30%

35%

Ok with RPE Improvement needed

17%

Tracker incomplete

Forecast Activities for Next Period

Long term goal 80% Respirator Free by 2012. Currently at 52% Target for 2010 Elimination of RPE Red Tasks (~300 tasks) Key items for sites 1. continue to complete OH monitoring, 2 address red tasks 3. update Tracker Advice available from Ruzen Castenda CHS; Ritesh Patel ABEMS; Russell Collins - PhLGS Damien Boyd EHS SS and Bina Lowcock EHS SS Currently programme is on track

Professional Certification
Current Situation 50% of EHS professionals in GMS do not hold appropriate professional qualifications

60% are not certified members of relevant professional bodies

This is primarily due to lack of local professional qualifications of an international standard in many countries 3-year project with the following deliverables All GMS sites must ensure access to at least one certified professional in relevant EHS disciplines by 2012 Qualifications and memberships must be approved by GSK to ensure appropriate standard

Action plan must be agreed with divisional EHS Director and/or GMS Medical Director

Building Global Engineering Capability

GMS Engineering - Changing landscape

GMS Engineering Capability
GSK Strategy

GMS Supply Divisions 4 : 3

Regional Capability Engg/EHS Alignment PS Capability Reducing Capex Plan Network Changes EM Growth CCERP/Sustainability
Russia DMEA China India MENA Latina SSA Asia Pacific

Company/Site acquisition Steifel / BMS Pakistan/Egypt MENA and AP expansion in manufacturing footprint Strategic partnerships / Product Acquisition Where we gain access to brands e.g. Aspen Where we gain access to site footprints with brands

GMS Engineering Building Global Capability

Five Key Areas of Development:
Regional Capability

Reviewed by GMS ELT in March 10 Kicked Off Activity in Q1 2010

Engineering Structure

International Graduate

& Systems

Building Global Engineering Capability

Schemes

Job Rota tion

Talent Management

EXECUTION

Engineering Technical Centre

ETC Capability Chart

GMS Engineering

ETC Engineers

Who
Aman Kapoor Kanheya Mehrotra Rajinder Tewari Ravinder Bhardwaj Ritu Bhatnagar Rupa Kishore Syamal Kundu Sandeep Gupta Umesh Mishra Anil Relan Ashutosh Revo P K Verma M K Vardia Extra resources

Expertise

Projects

ETC Core Team Process engineering, VOC and containment Nashik, Thane, Efficient ETC operation & Defining Business Need for GSK GMS Project Mgmnt, Utilities and MEG Expert Gurgaon HVAC and mechanical and zero access Indonesia, Nashik Process Architect: Secondary, Labs & offices Sonepat, Nashik Project Manager for FES Nashik Process Engineering: Secondary & API Cork, Irvine, Montrose Low cost sourcing & second hand equipment GMS Planning & project Controls Indonesia, Thane Nashik ETC Extended Team Pharma Engineering Expert : Secondary, API & steriles Bangladesh Mechanical Equipment Expert Sonepat Civil & Structural Expert Algeria, China Electrical Expert Sonepat, Nashik 3-4 Civil, Electrical, Process, Environmental Engineers

+ 8 10 Draughtsmen

ETC engagement with GSK

Inception
Feasibility/Concep t Future

Cork Jurong Thane Montrose Irvine Nashik Emergency venting calculations. Facility Master Planning.

Sonepat Nashik Pulogadung Chittagong Gurgaon Studies for new facilities, expansion projects, or modifications.

Poznan Brasov Memphis Ulverston Port Fairy Baddi Expanding remit both geographically plus into new areas of site and project support.

ETC Efficiency improvement

45 40
35 30 25 20 15 10 5 0 Cork Montrose Irvine Thane 17 41

GES304 Emergency Venting Hours per calculation

31 26

ETC applying GES304 consistently across GMS sites. Shared service efficiency gains as same type of work is repeated. 19/hr vs Western rates of 60-80/hr.

Maintenance Efficiency Programme Consumer Health Ph1

Background
7 CH sites account for ~65% of maintenance activity and cost in CH division (~26m pa). (Total Cost of Maintenance Site OPEX) ~ 16% for this group. World Class Benchmark 6% - 10% Memphis Diagnostic Pilot Apr-09 Memphis Clifton Phase 1 Project approved at OPEC Nov-09 Potential Opportunities Maintenance Cost Reduction Increased OEE
St Louis Aiken Dungarvan Slough Maidenhead

Size of Opportunity - 5m pa

Maintenance Diagnostic
Follow-Up Support from CoE Critical to Success Benefit Tracking through CHS and OPEC

Preparation

Diagnostic Event

Implementation & Benefit Delivery

4 weeks

1 week

12 18 months

Typical Opportunities Labour efficiency (headcount reduction) Management and control of R&M spend Reliability improvement & OEE gains Spare parts management Work planning & scheduling

St Louis Diagnostic Event

Successes So Far
Benefit opportunities identified in line with 5m target. Generic tools and solutions developed or deployed:
Maintenance process flow map Equipment criticality tool Reliability based PM technique Engineering Failure Rate KPI

Examples of first benefits delivered:

Clifton OEE 39% 48% Memphis Lopez OEE 20% 45% Aiken 1 FTE reduction in parts store Clifton 3FTE reduction in maintenance team Memphis 1FTE reduction on FLT maintenance

Future Plans
CH Phase 2 5 further site diagnostics in 2010 Alcala diagnostic event completed ABEMS Secondary Sites 2 site diagnostics completed in 2009 9 further site diagnostics in 2010 PhLGS Secondary Sites 2010 CoE support focused on Failure Rate improvement

Town Hall Key Themes

Building Global Capability

Professional Accountability
Individual Leadership Shadow

Questions?