SUSTAINABILITY REPORT Cont’d SUSTAINABLE MANUFACTURING GRI 3-3 Why is this important? Sustainable manufacturing is important and should encompass continuous improvement and innovation in production processes which ultimately, aims to enhance productivity and efficiency while simultaneously reducing or mitigating environmental and social impact of aluminium manufacturing operations. By integrating sustainable practices into every aspect of the manufacturing process, Press Metal can achieve optimal resource utilisation, minimise environmental impact, and improve product quality while meeting customer demands. Our Approach SET IN ORDER Tidy, place, organise. SHINE Clean, upgrade. SUSTAIN Educate, communicate, maintain 5S standard STANDARDISE Simplify, order. SORT Sort and eliminate. 01 02 05 03 04 At Press Metal, we are committed to implementing best practices in sustainable manufacturing across all our operations. This includes embracing new technologies and methods, optimising resource consumption, and ensuring that our operations meet the industry’s standards of environmental and social responsibility. Our Sarawak Operations have implemented the 5S Principles, which include Sort, Set in Order, Shine, Standardise, and Sustain. With the implementation of 5S Principles, it has resulted in heightened safety, cost savings, and optimised asset utilisation. While the first three (3) principles have been applied across departments, we aim to implement the remaining principles through periodic audits and quarterly inter-plant competitions to promote the practice of 5S Principles. At our entities, we cultivate sustainability in our manufacturing operations by encouraging all employees to contribute to improvement projects. Our commitment to fostering a culture of innovation and continuous improvement is reflected in the establishment of improvement platform that enables employees to submit their improvement proposals. The improvement platform follows a methodical process which involves identifying and addressing key issues, implementing effective solutions, and tracking progress to ensure sustained improvement. The Sarawak Operation’s Improvement Programme (“SOIP”) is one of the platform that allows employees to contribute ideas and solutions to improve the manufacturing process; classified into Strategic Improvement Project (“SiPro”) and Improvement Project (“iPro”). SiPro is a long-term initiative that can lead to systemic changes and may consist of several iPro initiatives, while iPro is standalone solutions that is smaller in scale and requires less time for implementation. In FY2022, Press Metal implemented 4 SiPros under the SOIP such as digitalise the reporting process and improvements to manufacturing processes which can be viewed in the respective sections of this Report. Climate Change Initiatives SOIP Research & Development Department Initiatives Furthermore, we have established a Research and Development (“R&D”) team in FY2021 to look into specific R&D projects i.e. climate change projects. To spur research and innovation, we have partnered with several local universities to collaborate in areas such as research and academia, student and staff development, and human resource capacity building in Malaysia. Read more on Research and Development in the Climate Change section of this Report. ANNUAL REPORT 2022 112
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