Newmont Data Cleansing Project Overview

ECCMA International Cataloging Conference

October 26, 2006

Newmont Data Standardization Overview

Agenda

• Company & project overview• Project approach• Lessons learned • Results & going forward

Company Overview

2005 Revenues: $4.4 billion

2005 Equity Production 6.4 mm Oz’s

2005 Equity Reserves 93.2 Oz’s mm

Business Drivers for Standardization

NEV

NAL

MYSRL

NGGL

PTNNT

Site / Regional

Purchasing

Inventory

Item identification

Unique instances of ERP databases

Newmont

Corporate / Global

Sourcing Leverage

Component Standardization

Opportunity Identification

Apples to Apple Comparison

Goal and Guiding Principles

All sites will catalogue the same items in the same fashion, including names, descriptions and associated classification links (catalog and associated data).

Guiding PrinciplesAdopt an open standard (eOTD)

Based on NATO Schema – familiarity and system baseLinked to UNSPSC for global spend analysis

Design a system and process to lower the pain across the sitesLevel of effort – resourcesCost

Catalog the ‘right’ itemsRemove duplicates and obsolete (archive)Integrate eProcurement program to move items to Suppliers catalogs

Project Approach

PERPETUATE

Implement Business process/workflow

Implement controls (Validation/Audits)

Provide tools/training

210,000 Items Globally - One Year to Cleanse

DEFINE

Select catalog standard

Define internal standards

IMPLEMENT

Cleanse catalog

Update tables & associated records

Implement: Catalog Cleansing States

Level I

Item Names assigned

Goal: 100%

Level III

Research to full attribution

Goal: 40%

Level II

Apply existing data

Automation and manual

Goal: 60%

All levels may be simultaneous at sites and globally

Implement: Global Team Structure

1 – Program Mgr1 – Project Mgr

Ensure the project is going smoothly, resolve issues, find resources

Denver

1 – Catalog Mgr2 – Catalogers

Clean MYSRL items, submit new Item Names

Peru

1 – Catalog Mgr1 – Catalogers

Clean NGGL items, submit new Item Names

Ghana

1 – Catalog Mgr1 - Cataloger

Clean NAL items, submit new Item Names

Australia1 – Catalog Mgr3 - Catalogers

Clean PTNNT and NEV items, submit new Item Names

Indonesia

Total Team

1 Program Manager1 Project Manager4.5 Catalog Mgrs.5 Dictionary Owner7 Catalogers1 3rd Party/VendorAdditional outsourced cleansing

.5 – Catalog Mgr.5 – Dictionary Owner

Clean NEV Items, ensure dictionary grows correctly

Nevada

Implement: Architecture

NEV

NAL

MYSRL

NGGL

PTNNT

GlobalRepository

NMD OEM

Level 1 Clean – Item Name

Level 2 - Partial Attribute

Level 3 - Full

NewmontCatalog

1. All Items into Central Repository2. SW Auto-match to NMD3. SW Match to OEM (part #)4. SW facilitates global cleansing5. SW Match to Newmont part #

Perpetuate

CLEAN DATA

Biz Process Tools Roles

New operational activity to support clean data…

Other Deliverables

In addition to data cleansing…

• Newmont Master Dictionary (“complete”)• Cataloging Manual (complete)• Catalog Item Request (planning)• Enhanced supplier data (planning)• Governance/maintenance

Lessons Learned

• LOE• Spreadsheet cleansing• Cleansing not “linear”• Catalog = moving target• Track and collaborate• Catalog synchronization• New roles/responsibilities• Single instance ERP…

Benefits Realized To-Date

Early results at our pilot site…

• 14,000 potential duplicates• 25,000 archived items• Enhanced improperly coded items (“tens of

thousands”)

Meeting 2007 Goals

Catalog Item Request: 2006/2007• Standards and workflow automation

Standardized Manufacturer Mnemonics: 2007• Issue: How to maintain standard

Enhanced Supplier Data: 2007• Implement requirements

Catalog Synchronization: 2007• Issue: standard & external workflow

Implement “Data Steward”