Quarry Work Process. Evaluating the ROI of Technology for Aggregates 3/15/2017. Transforming the way the world works. Return on Investment

Transcription

1 Evaluating the ROI of Technology for Aggregates Elliot Chisholm & Tony Gianni #F11 To earn Professional Development Hours (PDH): 1. Log into the CONEXPO CON/AGG App 2. Go to this session in Schedule 3. Check In using the Slider in Session Detail Return on Investment Improvements in Revenues Costs Safety Environment Versus Money spent Time spent 1 4 Transforming the way the world works Overview Company founded in 1978 Publicly traded on the NASDAQ since Revenue $2.5B; 8,000+ employees Customers in 150+ countries Transforming industrial work processes through integrated positioning, communications and information technologies Over 2,000 patents issued Unique Position Rich domain knowledge Field-centric Solutions focused Mixed fleet support OEM partnerships Global reach Local support Quarry Work Process 2 5 Presenter Introduction Extraction Load correctly/ improve haul truck loading Manage blasts Reduce cycle times Higher equipment utilization Tony Gianni 5+ years direct project experience with quarries and mines across Americas Trimble Loadrite Regional Sales manager for Americas Previous experience in Heavy Engineering, Technical Services roles Elliot Chisholm 10 years+ experience applying on board weighing technology Marketing Manager for Trimble Weighing and Aggregates product portfolios Previous experience in development and product management Civil Construction Materials are tracked all the way to the construction site Maximum paving quality with concrete and asphalt. Real time data flow measures progress and material quantities Processing Increase profitability Monitor and improve crushing and screening Reduce downtime Measure production and throughput Calculate stockpiles Transport Distribution Manage fleets with real-time vehicle location and condition. Highlight operational improvements Load-out Measure and improve loader efficiency, performance, truck cycle times and customer satisfaction. Track materials Load every truck safely, quickly and accurately 3 6 1

2 The Connected Quarry EXTRACTION PROCESSING LOADOUT Lean Operations Performance Indicators 1. Task Productivity 2. Process Productivity 3. Continuous Improvement 7 10 E D W L G L E D W G L E D W G E D W Re-crush Essential performance metrics for quarries G Strip Drill Blast Load Haul Crush E D W D W D Secondary crusher Tertiary crusher Wash Plant F W G F W G Product Piles Waste Blending D W E L G F Screen F W Surge Pile F Fill level D Downtime W Weight E Energy/Fuel L Labour G Location/GPS Actual production Sales Equipment utilization Production cost Inventory Production / target Sales / extraction ratio Utilization / scheduled time Cost / tonne (for each process and product) Inventory / sales ratio W 8 11 Product Offering EXTRACTION PROCESSING LOADOUT 1. Task Productivity Pit loading scales Haul Truck Monitoring Drill positioning Dredge positioning InsightHQ - Information Management Portal Conveyor Belt Scales Downtime Entry Loader scales Loadout integration Conveyor Belt Scales 9 Targeted Operational Improvements Throughput per hour Faster cycle times reduces the hours needed to achieve a certain task or output Reduced machine hours reduces fuel cost, maintenance cost, repairs, capital depreciation, for the same amount of output Cost per hour Treating equipment better reduces maintenance costs, regardless of the output / hr Operating a machine properly can reduce fuel cost and maintenance cost for the same productive output Idling, running empty Like idling for mobile equipment, black belt time in crushing and screening Reduce wasted material Sell as much as you can of what you make Value of service Better customer service leads to more business and better pricing 12 2

3 Sample Quarry Sample Quarry Operation Production: Fleet: o 900,000 ton theoretical capacity o Selling 730,000 tons per year, at $10/ton o Pit: 1 Drill (1 shot/ 2 wks), 1 excavator, 3 Haul Trucks o Processing: 3 crushers, 10 belts o Loadout: 4 Loaders, 1 water truck, 1 weigh bridge Other parameters: o 17 staff o 11 months/yr, 5 days/wk, 8 hrs/day operation Extraction

4 Extraction Load correctly starting right from the pit. Manage your blasting performance and eliminate the guesswork involved haul truck loading. Quickly identify opportunities for improvement in loading, cycle times, equipment utilization and maintenance. Shap Beck Quarry : Pit Optimization Shap Beck Quarry X2350 Excavator Scale Reporting software Eighty (80) day Payback Purely from optimizing haulage Additional value from: Better management of blasting contractors Hard data to right-size equipment Recommended to rollout on largest global sites Having Loadrite systems and reports was like putting reading glasses on. We could see and analyze every detail of our operation. - Chris Herbert, plant supervisor Shap Beck Quarry, UK Haul truck management Extraction Improvements Task Productivity Reduce the number of truck cycles Compress operating costs Process productivity Reduce truck cycle time Monitor blast yields Reduce inventories and re-handling Customer feedback: Reduction in cycle times H2250 data helped identify issues causing longer cycle times. Dumping time issues caused by waiting for traffic light. Change in practice to call for lights once in position. Achieved 50% reduction in dump time. Time saving of 1 hour per day. Cost improved by 11 cents/ton, With a system that costs about 2.2 cents/ton (over 7 years)

5 ROI: Extraction Monitor production and empty run time Additional Benefits: 1. Accelerate Operator learning curve Achieve more than the above, or faster 2. Improved Safety 1. Ensure trucks are loaded appropriately for the circumstances priceless Stockpile management Processing Processing Increase the profitability of your operations by monitoring and improving your crushing and screening. Measure production from crushers and screens. Monitor throughput on conveyor belts to calculate stockpile tonnage. Effect of empty run (black belt) time

6 Regional Production Monitoring Solution Installation of belt scales on each site after the primary crusher Various pieces of data communication infrastructure to provide the best solution for each site, incl. Ethernet, radio and cellular modem Access to InsightHQ reports by regional and site management Benefits Monitoring of black belt time after each primary crusher; operating the plant only when material has to be processed Monitor the performance of all sites with the same type of scale Consolidate all data in one single data base Reduce software and hardware variations Internet Overall reduction in operating cost, reduction in power consumption and maintenance and increase in management productivity by remote monitoring of all sites Load Out Loadout Measure and improve loader efficiency, performance, truck cycle times and customer satisfaction. Track materials leaving your site, and load every truck safely, quickly and accurately. Use loader scales optimize truck loadout, and generate billable information and tickets straight from the loader scale (where available). Cost improved by 10 cents/ton, With a system that costs about 1.5 cents/ton (over 7 years) ROI: Processing Summary Loadout Management System Additional Benefits 1. Improved Employee Satisfaction Less manual reporting, less data re-entry hiring and training costs 2. Improved Safety Keep people away from heavy machinery when not necessary priceless

7 Onboard Performance Monitoring Transparency of current workload o Empower decision making Instant performance feedback for operator o Proactive Truck cycle time o Sense of urgency Weighbridge crosscheck o Improve confidence Load out: Improvements 2. Load the right material on the right truck More accurate loading = less material wasted Better loading information = less material that is misloaded and needs to be dumped by the truck (or worse: gets sent back from the construction site or the concrete plant) Loadrite 360 Success Story Hunua Quarry, Winstone Aggregates 1M tonnes annual production > 500 truck loads per day Delivered an 8% improvement in Truck Cycle time > $28k saving p.a. per loader 26% improvement in loading to target contracts completed with fewer truck movements Load out: Improvements 3. Sell more product, at a better price Faster turnaround times higher customer satisfaction win more bids and charge higher prices Better service may also allow to charge a higher price per ton Load out: Improvements 1. Task improvement: reduce machine hours needed to load product Spend less time idling: waiting for trucks in the wrong place, communicating with truck drivers, confirming load instructions over busy radio channels, etc. Coordinate loaders: spend less time driving around from one stockpile to another Save on engine hours and fuel Load out: Improvements 4. Improve Operator behaviors Collect detailed information, down to the second, minute and hour for Exact quantities, bucket by bucket For each type of material For each loader For each truck For each operator Benchmark the strongest against the weakest, identify areas for improvement, and focus training and supervision on the weakest operators or the most difficult situations

8 Operator management Summary Extraction: Measure loading and haul truck productivity. Optimize haulage. Measure Blast performance Processing: Measure total production. Tonnage per product and specific stockpile tonnage. Downtime reporting and monitor plant utilisation. Cost improved by 17 cents/ton, With a system that costs about 1.5 cents/ton (over 7 years) Load-out management: Load your customers trucks more accurately, eliminate overloading, reduce waiting time, improve safety. Fully integrated solution with site ERP or dispatch systems Load out: Summary Performance metrics improved Additional benefits 1. Accelerate Operator learning curve achieve more than the above, faster 2. Reduced project liability risk Reduce the risk of incorrect product / truck / quantity 3. Improved Safety Keep operators in their machines, keep driver in their trucks, and keep other people away priceless priceless 45 Throughput per hour, cycle times Utilization Cost per hour Sales / Extraction ratio Customer Satisfaction 48 8

9 Financial Benefit Achieved Cost improved by 38 cents/ton, With an investment of 5.2 cents/ton (over 7 years) 49 Video 50 Questions? Please complete the session evaluation on the CONEXPO CON/AGG Mobile App Go to Schedule and Select This Session 51 9