Actual vs Forecast. A productivity and cost improvement enabler for exploration drilling rigs.
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1 Actual vs Forecast A productivity and cost improvement enabler for exploration drilling rigs. Requirement The team at BHP Billiton Mitsubishi Alliance (BMA) realised that in order to efficiently manage their exploration business processes and costs, and to develop and adhere to realistic project plans, timely access to reliable, accurate data relating to all drilling activity, was essential. Equally, for the drilling companies contracted to the business, immediate access to information on current activity assisted in the efficient management of their operations and payment of invoices. Access to this information, on demand, together with the ability to use historical data for predicting and planning future drilling, would enable more effective planning and forecasting, while also providing visibility as to current activity. This, in turn, would enable the company to control and potentially decrease costs across their drilling activities while making decisions quickly and confidently. The Software as a Service offering proposed by REFLEX was attractive to BMA for a range of reasons; the solution was for the most part off the shelf, so apart from enabling the real-time flow of data to provide the information required, implementation of the solution was rapid. With no additional hardware requirements and no need to install software, the time and effort required to access the working solution was minimised. Solution REFLEX s solution, tailored specifically to address the issues highlighted by BMA, was in 3 parts. In order to enable near real-time approvals of shift activity, customised mobile forms were developed for their Daily Drill Reports (DDRs or plods ). The REFLEX Schedule of Rates (SoR) module was then employed in order to track current expenditure and reconcile contractor invoices. The Production Planning solution, newly developed at BMA s request, into which the 90 Day SRF is input, completed the full package and allows BMA to track project activity We have real time visibility on invoice information. It is a far more efficient way of managing our costs and forecast. Jaymie Perren, Superintendent Exploration Services, BMA against a defined budget and timing. Access to this information on a shift by shift basis allows us to deal with any discrepancies at the end of each shift, said Jaymie Perren, Superintendent Exploration Services at BMA, We have real time visibility on invoice information ease of approval. It is a far more efficient way of managing our costs and forecast.
2 Being able to monitor what is happening on site has allowed us to see where we are now compared to forecast, said Doug Dunn, Manager Resource Geology and Reporting at BMA on the reporting functionality of the mobile DDRs. Through real data driven conversations using common data and interventions with our contractors, we can make necessary adjustments to stay on track and reduce the impacts and likelihood of repeats later. Solution Detail In-field data collection through mobile forms Information collected on-site and displayed in a custom digital form provides instant visibility for BMA across all aspects of their drilling program.
3 Efficient and cost effective solution The ability to approve or reject the DDRs via the internet as well as on a handheld, digital device provides transparency as to the activity at the drill site and allows necessary changes to be communicated instantly. This, together with the ability to access the information directly from REFLEX HUB via the internet, without the need for any further investment in devices, provides an efficient and cost effective solution for BMA. Timely resolution of issues From BMA s perspective, issues can now be resolved on a shift by shift basis to ensure minimal disruption to drilling activity, while for the drilling contractors, issues resolved timely, ensure that invoicing can progress without delay or incident. This system has significantly reduced our data entry requirements. Nathan Kunst Drilling Contractor, BMA Drilling Contractor for BMA, Nathan Kunst, was pleased with the approval system to ensure punctual payments. The Supervisor (Client and Contractor) approval system ensures that data is accurately recorded and agreed on daily, said Kunst, which results in the timely approval of periodical invoices. Automated reporting Mobile forms generate accurate and timely data which is transmitted into REFLEX HUB on the completion of each shift, with the data then used for a range of reports and facilitating the efficient management of their drilling programme by BMA. Significant time savings are now gained by BMA in their day to day operation and administration. *Cost detail removed Visibility across all drilling activity provides valuable information for resource companies such as BMA to ensure their projects remain within budget and on time. Drilling contractors, on the
4 other hand, can monitor crews, equipment and consumables on a shift by shift basis to ensure they remain within the quoted parameters. It was easy to access and view all the drilling information we need to run our business, said Drilling Contractor, Kunst. This system has significantly reduced our data entry requirements and also gives us the ability to run reports around safety, production, availability and cost. From the contractors perspective, the automation has proved to save hours, It has saved us about 20 man hours per week for the entire East Australian Operations, said Kunst, that includes both my and my supervisors time as well as Head Office administration time. Activity summaries are generated through REFLEX HUB and based on the SoR. These report on a range of elements such as rig activity, daily drilling activity or shift activity and assist with effective monitoring and management of the drilling program. Drilling Metrics by Rig BMA s Superintendent Operations, Rowena Dickson, commented on the benefits of accessing near real time information generated without the need for data entry. We used to spend a lot of time entering data into spreadsheets to get graphs, now supervisors on the ground can access data immediately and make informed decisions to improve productivity. Schedule of Rates (SoR) The online solution into which BMA input their rates and measurement parameters ensures that forecasting and invoicing is based on approved data, significantly improving their accuracy and reliability.
5 *Rate and cost detail removed Reduce the risk of erroneous data Drilling contractors enjoy the significantly reduced risk of data errors and delays inherent in manual data entry with the simple to use solution, while BMA can now monitor their budgets on a shift by shift basis to ensure no unaccounted costs are incurred. Fast and efficient Where multiple contractors are employed on a single or multiple projects, easy replication of all BMA s standard rates and measurements make the generation of a new SoR for each project quick, simple and accurate for BMA. This ensures that there is a continuity and consistency in the use of codes for efficient administration and accurate reporting, while rate increases can be
6 set to activate on a predetermined date. Managing multiple contracting companies with variable schedules of rates is effective in the SoR tool as no company has access to another company s information. Customisation reduces administration Resource companies such as BMA or drilling contractors are assured of billing or being billed correctly with controlled entry of the customised mobile forms. As a result, all elements included align with current inventories and processes. Based on this verified information, reporting is then more accurate and reliable. Production Planning Track current vs proposed activity In order to ensure their project remains within budget and scope, it is important for BMA to compare the actual costs to the budget, as the project progresses. As the data from the DDR is transmitted into REFLEX HUB, the relevant drilling data is married with the information stored within the SoR to provide an up to date measurement of the current state of play. Planning is based on accurate, actual performance data. Doug Dunn Manager Resource Geology and Reporting, BMA The comparison of this information, for example metres drilled, against planned, provides an accurate indication of the performance of the rig. This assists us with planning, based on accurate, actual performance data, explained Dunn.
7 Access to real, accurate data has enabled efficient reporting and the reconciliation of all activities across BMA s drilling projects to ensure that costs remain within forecast and project progress remains on track. The REFLEX solution for BMA is a real productivity improvement enabler for our exploration drilling rigs, said Dunn. Our target is to get an extra 30% production out of the rigs, this is an enabler with which to do this. Key elements facilitating efficient communication and management across the project, through REFLEX HUB and to the relevant personnel include: Real-time reporting o o o Daily Operations Report Drilling Summary Report (cost summary) Field Operations Daily and Weekly Production Reports including Consumable Summary Report Cumulative Daily Approval Status Report Employee Time Report Rig Activity Rig Activity Summary Report Secure access to the BMA database through the REFLEX HUB web portal with contractors permissions designed specifically to allow visibility only to the data relating to their activity, while BMA is able to view and report on all data. Data views, exports and reports based on the standard suite of reports Improving efficiencies in the acquisition of data, the inclusion of this data in our reports and visibility across our business are priorities for BMA, said Dunn. Being committed to this project and working closely with the REFLEX team has resulted in significant operational efficiencies that are already adding value to our business. You can only manage what you measure and we now have some good measures. This has resulted in significant operational efficiencies that are already adding value to our business. Doug Dunn Manager Resource Geology and Reporting, BMA REFLEX For more than 40 years, REFLEX has continued to innovate and develop leading, mining specific technology solutions to enable resource companies around the world to work efficiently, mine productively, and gain the most value from their projects.
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OVERVIEW Monsanto esolutions: Our Suite of Tools Monsanto esolutions provides cutting edge electronic business tools for Asgrow, DEKALB, and Deltapine seed dealers. Everything from seed ordering, inventory
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