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Stabilising the supply chain - ArcelorMittal South Africa

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Quality improvements – Saldanha works<br />

• Customer complaint ratio of 0.102%<br />

of total sales revenue in 2012<br />

• 2013 YTD rate of 0.058%<br />

• Scrapped tons (ie scrap &<br />

secondary grade) in 2012 was<br />

6,510t<br />

• 51% lower than 2011 peak of<br />

13,308t<br />

• Surface defects make out 90% of<br />

claims with shape <strong>the</strong> balance<br />

• Cost of quality in 2012 was R16m<br />

• 16% below <strong>the</strong> 2011 result<br />

• 31% lower than <strong>the</strong> 2010<br />

Prime ratio<br />

99.5<br />

99.1%<br />

99.0<br />

98.5<br />

98.0 97.8%<br />

98.6%<br />

97.5<br />

97.6%<br />

97.0<br />

96.7%<br />

96.5<br />

2008 2009 2010 2011 2012<br />

3.0<br />

Rejections based on quality<br />

2.6%<br />

2.5<br />

2.0<br />

1.7%<br />

1.5<br />

1.6%<br />

1.2%<br />

1.0<br />

0.6%<br />

0.5<br />

2008 2009 2010 2011 2012<br />

12

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