An Asset Management strategy that yields results Obbie Lephauphau Principal Engineer: Asset Management Engineering Support Services Sasol Mining
Sasol Mining Background Sasol Mining is a division of Sasol Limited Consists of six mines, two plants & Central workshops Together they produce and handle about 43 million tons of coal annually
Underground Mining method- Board and Pillar extraction
Overview of critical underground Assets
Overview of Surface Assets
Asset Management definitions Coordinated activity of an organization to realize value from assets ISO 55000 Systematic and coordinated activities and practices through which an organisation optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan PAS55
Fundamentals on which asset management is based Bringing value for the organization and all its stakeholders from the use of its assets Promoting alignment across the organization to achieve organizational goals Managerial Leadership with commitment, along with an empowerment culture Achieving Assurance of producing required asset performance
Key themes (PAS 55 & ISO55000) Alignment ( line of sight ) of organisational objectives feeding clearly into asset management strategies, objectives, plans and day-to-day activities Whole life cycle asset management planning and crossdisciplinary collaboration to achieve the best value combined outcome Risk management and risk-based decision-making The enablers for integration and sustainability; particularly leadership, consultation, communication, competency development and information management
Asset life cycle
Percentage of the life cycle cost Significant life cycle cost are committed during asset creation phase Life-cycle cost reduction opportunity Committed cost (Cumulative) Actual Life cycle cost Asset Creation (Asset Design and development, Production and/or construction) Operation and Maintenance Asset Disposal
Process for acquiring new assets
Asset replacements or upgrades requires a business case Maximize Return on Investment Mitigate asset-related Risks Reduce asset-related Costs Improve asset performance Improve reliability Ensure regulatory compliance Improve environmental and human safety Reduce maintenance cost Extend asset Life Increase labour utilisation Reduce running cost Reducing operating downtime Increase asset output Improve asset efficiency Reduce Inventory
Life Cycle Costing is used for Asset Replacement decisions Achieving reduced Total Cost of Ownership, Reducing operating cost surprises, development of common objective criteria to be used. Providing a mechanism identifying major cost drivers to be targeted and optimized and maximizing the value of the asset over it's life.
Business case for asset replacement includes Asset Ownership Model Support Services Design/Redesign Manufacture Operation/ Function In-section Maintenance Major repair Overhaul Disposal/ Divestment 1. Complete Ownership in-house in-house In-house In-house In-house In-house in-house 2. Purchase Design & make asset & Own support services OEM/ Consultants in-house In-house In-house In-house In-house In-house 3. Purchase Asset & Own support serv 4. Purchase Asset & Partial-outsource support Services 5. Purchase Asset & Outsource support Services (Maint contract) 6. Purchase function (Leasing Asset) OEM OEM In-house In-house In-house In-house in-house OEM OEM In-house in-house OEM OEM OEM/in-house OEM OEM In-house OEM OEM OEM OEM/in-house OEM OEM OEM OEM OEM OEM OEM
Accum. Maintenance Cost Mitigated production loss and maintenance cost are used to justify asset renewals or overhauls cost 100 Life Cycle Maintenance Cost TTR without interventions TTR with interventions 0 0 Asset Life (Tonnes) 6 First CM life before 2Mt Millions Current Maintenance Profile Cost with with Overhauls interventions Poly. Maintenance (First CM Cost life before Without 2Mt) interventions
Optimal renewal or overhaul cycles are determined by economic life cycle Maintenance Cost Production Loss Renewal or Replacement Capital
ROCOF per day Performance of the renewal or overhauls is measured Rate of occurrence of failure (ROCOF) per day 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 Overhauls 0-0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Tons in Millions Asset life Cycle in tonnes
Replacement/ overhual strategy Technology Strategy Asset Management Plan: Continuous Miner `y JNA 2 upgrades Current Plan (0-1years) AC traction system (opti-drive) Integrated valve bank Expo spot Proximity detection 3.3 kv power supply Reliability Improvement technology Medium-term Plan (2-3 years) Equipment Matching technology Safety improvement Technology Upgrade or replacement Business case review Long term Plan ( 4-10 years) Asset performance Objectives Smart Systems Automation Dynamic overhaul or replacement cycle CM that will provide: - 3000 tons/shift - TCO of Rx/t - Zero SHE related incidents On-line Con-Mon system Real-time Business Intelligence. Low seam Machine configurations Business case development Major overhaul/ remanufacturing High seam Machine Configurations Mini-overhaul/ Major service Reliability performance monitoring overhaul scope and cycles review Disposal strategy contract management Condition Monitoring RCA & RCE process New Condition Monitoring techniques Prolonging subassembly lives Reliability performance Reviews Operator Training center of Excellence Work Management process Underground Communication System Improvement on Asset Information Management System Change Management Artisan training Maintenance Strategy Enablers
Individual asset management plans are prioritised and compiled into portfolio asset management plan
Asset management plans are communicated to stakeholders in a format, and appropriate level of details
Q&A