Management System

A management system is a set of policies, processes and procedures used by an organization to ensure that it can fulfil the tasks required to achieve its objectives.

PT Smelting Management System is Integrated Management System consisting of Occupational Safety and Health Management System ISO 45001: Environmental Management System ISO 14001; Quality Management System ISO 9001; and Security Management System.

PT Smelting also implement rule and priority of S-C-Q-D-E

S

afety

C

ompliance
& Environment

Q

uality

D

elivery

E

arning

Vision, Mission and Company Policy also represent the integrated management system, as shown in the following documents:

ISO 45001

PT Smelting has implemented Occupational Safety and Health according to ISO 45001:2018 in the integrated management system.

As the first copper smelter and refinery in Indonesia, PT Smelting has a major role in creating a safe working environment through the process improvement which is efficient and environmentally friendly as a model for future copper smelter.

PT Smelting has the basic responsibility to assure OSH for all of its employees and subcontractors. In this information era, this issue has become dominant and vital for company continuous existence. PT Smelting makes safety the highest priority for all workers and visitors.

One of its OSH objectives is to achieve zero Lost Time Accident (LTA). In 2010, OSH Department was established with its main tasks to manage all the efforts in risks, hazards control and accident prevention at all production stages. OSH Department later merged with Environment Administration Department forming SHE Department.

OSH Section has issued a general safety standard that must be followed by all employees, contractors and visitors. OSH Management System OSHMS consists of the entire safety standard prevailing in this company.

This system combines the safety and government rules into one safety manual which is maintained and updated regularly to cope with the latest condition. Safety audit, as one of management tool, is done regularly to check and monitor the system conformity throughout the activities.

ISO 14001

PT Smelting has a high and serious commitment to the environmental protection and environmental management by always trying to be environmentally friendly company. As a manifestation of this commitment is the implementation of Environmental Management Systems (ISO 14001: 2015) in the integrated management system.

ISO 14001 is an environmental management system that is recognized internationally, which requires companies that apply for managing all environmental impacts generated effectively through commitments to pollution prevention, compliance with regulations and to make continual improvements. PT Smelting has implemented an environmental management system according to ISO 14001 since the beginning of 2013 and received ISO 14001: 2004 Certificate from Lloyd's Register Indonesia in November 2014. Currently, it has been upgraded and renewed into ISO 14001:2015.

The company's commitment to environmental protection and environmental management is implemented in the Vision, Mission, Quality and Environmental Policy and Implementation Guidelines.

One of the requirements of the ISO 14001 standard is to establish and maintain a program for achieving the goals and objectives (clause 4.3.3). For its implementation, PT Smelting creates environmental management program to ensure the achievement of environmental goals/objectives. Environmental Management Program (EMP) in 2021 includes: Energy Efficiency, Water Conservation, Waste Management, Utilization of Renewable Energy (solar energy), Utilization of Hazardous Waste, Conservation of Mangrove Forest at Gresik Coastal Area, Conservation of Java Eagle, Komodo Dragon, Java Bull, CSR, 3R (Reduce, Reuse and Recycle) of Hazardous Waste and Non Hazardous Waste. To ensure that the company's operations has no impact to the environment, the company conducts regular environmental monitoring in collaboration with university and accredited environmental laboratory, such as:

Monitoring results show that the operation of PT Smelting has no negative impact to the environment. Regular monitoring results are also reported to the East Java Province Environmental Agency, Gresik Environmental Agency, Ministry of Environment and Forestry, as well as reported in the PROPER program held by the Ministry of Environment and Forestry.

For the obedience of environmental report submission, PT Smelting got award from East Java Governor and Tata Biwara Award from Gresik Bupati.

ISO 9001

ISO 9001 is well known as worldwide certification on quality management system QMS. ISO 9001 defines the standards of a quality management system to guarantee that the organization can produce the product or service based on requirement defined. These defined requirements are specific customer requirements, in which the organization responsible to guarantee the quality of its product or the market demand as defined by company. It is now common sense in· the world to get ISO 9001 certificate to show high and reliable quality management system.

In line with the company vision and mission, to deliver the highest quality of copper cathode and by-products, produced by environmentally friendly process at the safe and healthy plant, to our customers, PT Smelting has high commitment to produce copper cathode and by-products to world with the best quality, in order to give the highest satisfaction to all customers. To achieve that goal, stable operation and proper management system should be built as a footing ground of stable process and strong business circumstances.

By the above consideration, PT Smelting implements quality management system of ISO 9001. The quality management system of ISO 9001 activities in PT Smelting has been in place since January 17, 2001. Finally, on January 11, 2002, PT Smelting obtained ISO 9001 certificate from Lloyd Register Indonesia as the credible certification body. In order to implement this management system continuously, the certificate has been upgraded and renewed into ISO 9001:2015.

By implementing this international standard, PT Smelting can get more benefits such as:

Better planning and coordinated activities.
Any problems affecting product quality will be identified and effective solutions are implemented.
The plan-do-check-act approach of ISO 9001 will lead to more efficient and effective processes and more productive employees.
Higher quality products and customer satisfaction. Through the implementation of this management system, the customer satisfaction measurement result can be maintained in the high satisfaction level.

Sulfuric acid as by product of PT Smelting also has fulfilled Indonesia quality standard based on National Standard for Industry SNI 30:2017 since 2018.

Security Management System

PT Smelting is determined as National Vital Object company (Obvitnas) based on decision from Industrial Ministry No. 466/M-IND/Kep/8/2014. Therefore, PT Smelting implements security management system based on Police Regulation No. 7/2019 and got its certification on September 1, 2021 with gold level achievement.

The security management system helps company to place a key priority in securing and protecting the company's assets from threats and security disruptions by utilizing resources and infrastructure to create a safe, effective, efficient and productive working environment. The system enhances the involvement from all company members to bear and responsibility to support the stability of security condition in daily operational basis.

PROPER

COMMITMENT IN ENVIRONMENTAL PRESERVATION AND SUSTAINABLE DEVELOPMENT

Ministry of Environment and Foresting Company Performance Rating Assessment on Environmental Management Program (PROPER) is one of the Ministry of Environment's efforts to encourage compliance of companies in environmental management through information instruments. Implementation of various activities aimed :

1. to encourage companies to comply with the regulations through incentive and disincentive reputation, and
2. to encourage companies that have good environmental performance to implement cleaner production.

PROPER mechanism is divided into two categories. The first category is Self Assessment for Compliance criteria to gain the BLUE PROPER. The aspect of compliance composes of mandatory in regulation, such as Environmental Approval, Water Pollution Control, Air Pollution Control, Marine Pollution Control, Hazardous Waste Management and Prevention in Environmental Damage. The second category is Self Assessment for beyond Compliance criteria to gain the GREEN or GOLD PROPER.

The Beyond Compliance consists of Green and Gold level. In this level, the aspect of compliance consists of Environmental Management System, Energy Efficiency, Emission Reduction, 3R Reduce, Reuse and Recycle of Hazardous Waste and Non-Hazardous Waste, Water Conservation and Water Pollution Reduction, Biodiversity Conservation, and Community Development CSR.

MOEF conducted PROPER assessment starting in 2002 with a scoring system that is always being improved year by year. In line with the company’s vision and mission, to be the most reputable, reliable and environmentally friendly Copper Smelter and Refinery in the World Top Management of PT Smelting since 2013 establishing functional structure, a working group of PROPER Beyond Compliance that consist of representatives from several sections / plants.

The responsibility of document preparation is divided into two responsibilities, the first is the preparation of self-assessment document of PROPER Compliance under responsibility of the Environmental Administration Section, whereas for PROPER Beyond Compliance is under the responsibility of Working Group PROPER Beyond Compliance.

PT Smelting have participated in this PROPER activity from 2003 until now. During PT Smelting's participation in PROPER, PT Smelting was ranked in the GREEN PROPER rating 7 times (2003-2006, 2013-2016, 2022) and BLUE PROPER rating in other years. On participation in 2022 PT Smelting won a GREEN PROPER rating.

The successful of PT Smelting on achievement of Blue or Green-rating of PROPER is a proof of the seriousness of the company in realizing the vision and mission as an environmentally friendly company by always doing efforts to improve the quality performance in environmental management. And of course, these efforts can only be accomplished by the commitment of the top management and active participation of employees and also the cooperation of other relevant parties to maintain the environmental management quality.

Green Industry

The Green Industry Program is held by the Ministry of Industry which aims to continue to encourage all manufacturing sectors in Indonesia in the application of green industry principles in order to support the creation of environmentally friendly and competitive industries on the global scene.

The assessment criteria are distinguished between large, medium and small industries. For large industries, the assessment aspects consist of:

a. Production Process, including production efficiency programs, input materials, energy, water, process technology, human resources, and work environment in the production process;
b. Performance of Waste/Emissions Management, including GHG emission reduction programs, compliance with environmental quality standards, and waste/emissions management facilities;
c. Company management, covering operational standards, Corporate Social Responsibility

5S

5S was developed in Japan and stands for the Japanese words Seiri -> Ordeliness, Seiton -> Tidiness, Seiso -> Cleaning-up, Seiketsu -> Standardization, and Shitsuke -> Discipline. These words have been adopted to maintain "5S." 5 S is one of the methods of determining an organization approach to to evaluate its workplace organization capability & visual management standards. 5S engages people through the use of 'Standards' and ‘Discipline'. It is not just about housekeeping, but concentrating on maintaining the standards & discipline to manage the organization - all achieved by upholding & showing respect for the workplace every day.

Seiri | Orderliness

This means to identify the necessary things and unnecessary things. The necessary ones must be put in order, while the unnecessary ones must be disposed immediately. The importantance is to handle the essential cause of problem.

Seiton | Tidiness

This means to put things in order, makes things can be found quickly and easily. All the things should be well arranged, while the special place, label, name tag, and other necessary sign are provided. Then it is necessary to make the storing standard and rule based on necessity.

Seiso | Cleaning-up

This means to make clean the existing facilities and working area in order to find out the defects earlier. Cleaning is the responsibility of all persons.

Seiketsu | Standardization

This means to make the rule to keep the condition consistently and implement continous improvement in every working area.

Shitsuke | Discipline

This means all person should obtain and implement the spirit and behavior of dicipline through 5S Movement.

5S in PT SMELTING

PT SMELTING has applied and develops 5S movement since the company was born. The 5S movement in PT SMELTING is activities focussing on good organizing of working area and build employee discipline habit to follow the procedure correctly. By the good condition of working place, the defect equipment and other problem can be detected earlier and prevented. And by the high level discipline of employee, the stable operation and good quality of production will be achieved and prevented from occupational accident.

All area in PT Smelting divided in small area, we call segment. Totally PT Smelting has 87 segments and decided one PIC for each segment. To keep spirit of 5S and in order to improved the 5S culture several activities was conducted in PT Smelting which are:

General Cleaning Activity

This activity was conducted by all PT Smelting employee and sub-contractors every 2 weeks on Friday. In this activity, PT Smelting employee and sub-contractor will clean up their working area start from 12.45 until 13.15 WIB.

5S Monthly Evaluation Patrol

In order to evaluate and improved 5S movement in each segment, 5S Secretariat team will conduct patrol to all segments in PT Smelting one time in a month. The result of evaluation including ‘Best Segment’, ‘Most Improved Segment’ and ‘Worst Segment’ will announced on Monthly Managerial Safety Meeting. General Manager will give award for the best segment and most improved segment.

5S Yearly Evaluation

5S yearly evaluation was conducted one time in a year at the end of year. The evaluator team consist of 5S internal auditor from 5S secretariat and each section representative (including sub-contractor). Result of yearly evaluation is categorized segment by 5 classes of 5S implementation, which are :

GOLD : Area has excellent and develops 5S culture implementation.
SILVER : Area has very good 5S culture implementation
COPPER : Area has 5S culture implementation as standard.
NO TITLE : 5S implementation still below standard, and
NEED IMPROVEMENT : Area has no 5S culture implementation.

PT Smelting will give reward for segment which achieved GOLD, SILVER and COPPER category.

Suggestion & Proposals

Presentation & Evaluation

Reward & Appreciation

Kaizen Teian is a system or a formalized mechanism that encourages employees to contribute constructive ideas for improving the organization in which they work. This system is one of the tools that can be used to support stable operation and achieve company target.

PT Smelting installed this system on July 2000 and we have 5 category of Teian Idea, Copper, Silver, Gold and Diamond. So far thousands of Teians have been suggested, and got award by Top Management. Our operation is supported by both technical innovation and continues improvement through Kaizen, which is essential for PT Smelting.

PT. Smelting