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Tomago AluminiumIntegrated management systemhelps fuel high performance

Company overview

Based in Newcastle, New South Wales, Tomago

Aluminium is the second largest aluminium

smelter in Australia and contributes significantly

to Australias position as the worlds third largest

aluminium exporter. With annual sales of some

$800 million and more than 1,000 employees,

Tomago has a reputation as one of the worlds

most efficient and low-cost aluminium producers.

The company, owned by a consortium of Alcan,CSR and Norske Hydrothe aluminium industrys

major players, produces aluminium mould ingots,

rolling slabs and extrusion billets, used in indus-

tries as diverse as building and construction,

transportation, consumer durables, packaging,

electrical supplies and machinery and equipment.

Business challenge

Tomago strives to continuously improve production

and IT capabilities to ensure that it can serve a

growing global demand. Particularly, the company

wanted to empower its entire organization to be

proactive about achieving its ambitious production

target of 517,000 tons of aluminium each year

an increase of 14 percent from the previous level.

Given the intensity of competition in the

aluminium marketplace, Tomago decided to

partner with Accenture to enhance key business

processes as well as design and implement a

scalable, state-of-the-art SAP-based integrated

management system. The SAP-based solution

would include three components: an employee

portal as a single internal and external resource

to give staff easy access to and retrieval of

important business information; the latest

SAP applications, including human resources,

document management, knowledge manage-

ment and business reporting tools; and a real-

time plant information capability to better

report on areas such as metal flow, casting

and production. Tomago and Accenture

expected these new capabilities to enable

maximum production, reduce losses and

improve employee engagement. Tomagos

plant managers and employees would have

complete access to appropriate information

for each respective area of responsibility.

Likewise, corporate executive management

would gain the deep insight into productionvolumes, efficiency, product quality and envi-

ronmental emissions required for faster, more

effective decision making. The solution would

also provide for multimillion dollar cost

reductions along with significant return on

investment (ROI).

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The team also built a third-party ware-

house management system to help

Tomago employees manage key ware-

house functions, using iris scanners to

manage the warehouse down to the

individual bin. Additionally, Tomago and

Accenture built a range of online support

tools, based on SAP Tutor and SAP

InfoPak, that are accessible through aninterface called TOM, or Tomago Online

Magician. Along with overall project

management support, Accenture provided

system testing, technology infrastructure

and architecture and user training.

The systems custom architectures will

support and accommodate targeted

efficiency gains, consistent growth and

future market expansionbalancing the

needs of today and tomorrow, a trait of

high performance businesses. Phil Hughes,

project manager for the Tomago

Integrated Management System, said:

The new system is simple to use and

easy to manage and run. It provides both

managers and employees opportunities

to reduce the time spent on administra-

tion and be more efficient and effective

on the job, while improving customer

satisfaction and providing long-term cost

reductions to the business.

High performance delivered

With the new integrated management

system, Tomago is continuing to take

steps to extend its high-performance

business capabilities by using IT as a

strategic enabler. Tomagos chief finan-

cial officer, Roy Gellweiler, said: Our

integrated management system, TIMS, is

a key factor in our effort to drive

improved performance from our opera-

tions, ensure the longevity of our man-ufacturing plants and maximize the

value of our industry know-how. Today,

Tomagos people can access precisely

the information required to do their jobs

effectively, whether in the management

suite, administrative offices or the man-

ufacturing plant. For example, Tomago

employees can now access selected

suppliers websites via the new system

and purchase goods through the

Internet with appropriate purchasing

information automatically imported toSAP R/3. The new system also makes it

possible for Tomago to use innovative

document and knowledge management

Copyright 2007 Accenture

All rights reserved.

Accenture, its logo, and

High Performance Delivered

are trademarks of Accenture.

This document makes reference to trademarks

that may be owned by others. The use of such

trademarks herein is not an assertion of own-ership of such trademarks by Accenture and

is not intended to represent or imply the exis-

tence of an association between Accenture and

the lawful owners of such trademarks.

Technology components

SAP ERP including:

- Asset and InvestmentManagement

- Materials Management

- Service Management

- Document Management- Knowledge Management

- Finance

- Human Resources

- Payroll

- Plant Maintenance

SAP NetWeaver Portal

SAP NetWeaver BusinessIntelligence

SAP Tutor SAP InfoPak

tools to manage and control sensitive

and critical business information, such

as quality and safety, throughout the

plant. Over the next 10 years, Tomago

estimates that its new integrated man-

agement system will save the company

$28.5 million and help sustain its lead-

ing position in the aluminium industry

using the tripartite approach of excel-lence in business leadership, business

process effectiveness and technology-

driven competitive advantage.

To learn more about how Accenture is

helping organizations leverage SAP to

become high performance businesses

and governments (and how we might

help you), contact Accenture at

www.accenture.com/sapgetcreative.

About Accenture

Accenture is a global management

consulting, technology services and

outsourcing company. Committed to

delivering innovation, Accenture collab-

orates with its clients to help them be-

come high-performance businesses and

governments. With deep industry and

business process expertise, broad global

resources and a proven track record,

Accenture can mobilize the right people,

skills and technologies to help clients

improve their performance. With more

than 152,000 people in 49 countries,

the company generated net revenues

of US$16.65 billion for the fiscal year

ended August 31, 2006. Its home page

is www.accenture.com.

Choice of Accenture

Tomago chose Accenture for its extensive

industry expertise, proven experience

and deep multidisciplinary business and

technology capabilitieskey attributes

endorsed by its award-winning imple-

mentation at QAL Alumina Ltd., a majorsupplier to Tomago of alumina, which

is the key raw material used to make

aluminum.

How Accenture helped

Working collaboratively with Tomago,

Accenture worked to first re-engineer

and design processes around key func-

tions such as materials and service

management, warehouse management,and plant maintenance. The team then

designed the software configuration for

SAP R/3 and key components of SAP

NetWeaver, and custom developed

required interfaces and functions.

Accenture provided extensive know-how

in a template form, customized specifi-

cally for Tomago. The employee self-

service portal, built using SAP NetWeaver

Portal, integrated 10 separate SAP

modulesincluding SAP NetWeaver

Portal, SAP Document Management,

SAP Knowledge Management and SAP

NetWeaver Business Intelligenceas

well as a number of legacy applications.