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ways to improve productivity performance in mining operations

These anonymous insights apply machine learning to help manufacturers design more and more advanced technologies. In most cases, mining equipment operates near continuously through days, weeks and months, and this creates the need for periodic maintenance events for filters, fluids and beyond. This has represented a difficult challenge for mines since 2008: none of the mines in the sample studied have succeeded in moving into this quadrant. Landfills, dairy farms, livestock farms and sewerage treatment plants all produce raw methane naturally. The U.S. natural gas pipeline system totals over three million miles of pipeline across the country, providing natural gas to factories, hotels, city-owned facilities, convention sites, airports, commercial ship and motorized vehicle refueling sites, and finally into residential homes across the country. Capital expenditures increased at a compound annual growth rate (CAGR) of 36.8 percent from 2004 to 2013, and operating expenditures at a CAGR of 18.1 percent in the same period. In that way, delivering data in the right time frame can actually reduce operations’ risk.” Tunnel Vision Also, by having access to the right information when operations teams need it, they can avoid potential stoppages or downtime. The Julong Copper Mine is a great example spotlighting how Cummins goes to great heights by maintaining over 10 aftermarket support team members on site, located at an altitude of 5,500 meters. Boosting production volumes became the industry’s top priority. Rethinking minerals processing – in particular, transitioning to digital control and optimization in your existing operations – is one key lever to deliver a step change in productivity. Partnering between mining companies and equipment and technology providers should also increase, so innovation in mining can succeed more broadly. A South American copper mine made significant capital expenditures to boost its production and saw output rise 3.9 percent per year (Exhibit 7). For example, an iron ore supply chain may consist of several mines, multiple plants, a rail network and one or more ports that are all spread over several hundred kilometers. Given the importance of equipment availability for miners, let’s get into five impactful ways to boost its availability. The information you are looking for is on Since then, he has worked in several marketing roles and now brings you the learnings from our key markets ranging from industrial to residential markets. Intelligent Insights for Mining Operations Doing this will create greater transparency on operations performance. The autonomous drills at Yandi and Mining Area C have increased productivity and reduced wear and tear maintenance costs. The evolution of the mine’s asset value since 2008 is represented by the size of the bubble. Here is a real-life example on how engine reliability makes a difference. It’s important to mention that there are some ways to improve productivity more effectively, but companies need to understand that new technologies must be applied to have the better results. The importance of lead and its impact on the cycle time of SDL can be easily understood from the simple calculation presented in Table 1 . Let’s define productivity as getting the job done faster, and increased productivity helps miners do more with less. Economists have also applied more advanced metrics such as total factor productivity (TFP). Operational excellence implies a continuous focus on improvement and enables ongoing cost reduction and throughput improvement. How? This is a proactive approach and focuses on avoiding engine issues instead of trying to repair them. Miners have several opportunities to improve their operational productivity; below focuses on two opportunities most relevant to increasing productivity of equipment ranging from haul trucks to excavators. Reduce Distractions. Feature stories and news releases about Cummins people, technology and culture. Mining-company management should encourage openness to trying new approaches and to adopting new technologies. A typical mine works 24/7 throughout the year, for years to decades. Haul trucks powered by Cummins QSK60 engines have continuous uptime in this severe environment, making it the top engine of choice at Julong. Our new report details 33 technologies to improve energy efficiency—and your bottom line. Follow us on Facebook and LinkedIn to learn more about trends in the mining industry and see how Cummins is powering a world that’s “Always On”. Search our solutions database or contact Cummins Care via phone or online form. Worldwide mining operations are as much as 28 percent less productive today than a decade ago, according to new McKinsey research. To that end, we have developed a metric—the MineLens Productivity Index (MPI)—that enables mining managers A customer from an Arizona (USA) mine site had concerns because their non-Cummins engines powering their haul trucks were not performing at the quality needed. Embed effective management operating systems at mines. By using this Site or clicking on "OK", you consent to the use of cookies. Not only does this have significant environmental sustainability benefits, it also lowers operating costs – which is a big win for our customers," he added. The customer has decided to switch to Cummins QSK60 engines and consequently reported a 43% improvement in mean time to failure and a 69% improvement in mean time to repair. Boost Productivity Through Mining Technology Integration Mining companies are always on the lookout for ways to improve safety, lower costs, improve profitability and boost efficiency. A mine that has improved in all four elements of productivity that underpin MPI—labor, capital expenditure, nonlabor operating costs, and production volumes—will move from its starting position (as shown by the dark-blue bubble) into the green quadrant, and the bubble size will be the same size or smaller than in 2008. Another important factor concerns more extensive regulatory requirements across the industry worldwide; these can directly or indirectly affect productivity but, again, lie largely outside management’s control. To further encourage the growth and use of RNG in the United States, the EPA established the Renewable Identification Number program (or RIN). Talent is needed not only, for example, to achieve world-class levels of waste elimination and flexibility in operations, but also to be able to make progress on productivity. Given that mining companies typically measure the output of the actual ore being mined, rather than the total material moved, productivity measured in this way tends to be constantly in decline. To learn more about mining power solutions Cummins offers, visit our webpage. Capturing this abundant energy source and converting it to a very affordable energy source, then coupling it with Cummins’ renewable natural gas engine delivers net sub-zero emissions goods movement today. Focus on innovation. Some of these, such as the extended maintenance intervals and engines capable to do more with less, will help miners both on sustainability and productivity fronts, a double gain for the industry,” said Steve Cummins, Director of Mining Business at Cummins. Moving to the second level of actions, we see three important areas of focus to address the root causes of productivity decline. Loss of engine power could lead into more trucks doing the same work or work being done slower, and neither are good solutions. With advanced hardware and sensors now being increasingly added to construction equipment- machines are in fact collecting data and learning the way sites work. Refocus on high quality production by increasing cut off grades. In this quest towards higher productivity, even these periodic planned maintenance events are open to questioning. And then of course these new sets of technology do require new skills. Alternatively, what if you knew exactly how much work you could get done with an electric machine before its battery needed charging and then you could plan your charges during downtime to not only save on utility costs but also ensure availability during regular work shifts? What is the way forward? Reduce capital... 2. Cummins has 16 master rebuild centers around the world capable to rebuild high horsepower engines. More trucks would mean increased carbon footprint while doing the work slower means low productivity. Miners have several opportunities to improve their operational productivity; below focuses on two opportunities most relevant to increasing productivity of equipment ranging from haul trucks to excavators. Similarly, the overall equipment effectiveness (OEE) metric—commonly calculated from dispatch data about equipment operating time and delays—provides important insights about availability, utilization, and tempo performance, but is focused on component parts of the operation such as shovels or a processing plant, rather than the whole operation. A new way to measure productivity in mining operations Put simply, the industry needs a methodology to help managers understand whether or not they are improving their performance at breaking and moving rock. The MPI data suggest that over the 2009–13 period, the industry has more or less stabilized the downward trend in productivity, with MPI running on average at only –0.4 percent a year. What do the data show? Independent project analysis in … There has typically been a focus on improving one or two of the variables, such as reducing cost, lowering capital intensity, or increasing throughput. "With the new Performance Series engines, Apache sprayers receive a performance boost of up to 15 percent due to the increased power and torque available throughout the engine speed range," said Veera Rajendran, Vice President Engineering, ET. A mining haul truck could work for over 600 hours a month, which is the equivalent of two years of driving for an average U.S. driver. The certified rebuild process, from teardown to final inspection, is a detailed 600-step procedure to ensure the highest quality. Miners benefit from working with partners that offer extensive aftermarket capabilities, yet the best starting point for mine operators to maximize machine availability is to have reliable engines. Miners are seeking to cut costs incurred to produce mining output, or to increase output at no additional cost—in other words, to raise productivity. “Availability is and will continue to be a key driver for the mining industry to deliver superior financial performance. Safety is paramount to mining operations, and good safety methods can lead to improved production. Sprayers: They're big, they're versatile and they're one of the most valuable pieces of equipment for today's farmers. There is intense interest across the industry in reversing the excesses of the 2000s. Technology is the obvious productivity lever that the mining industry can continue to use to unlock further productivity improvement, Ivory continued. This makes the daily, informal collabora… Probably the most important are the variable nature of ore grades and the depth of the ore body. Use enhanced sequencing to optimise mine sites. Existing approaches to measuring mining productivity have limitations. Collecting data from individual mines on each of the four elements makes it possible to track how productivity has evolved and how the elements affect a mine’s performance over time. Consulta la tua bacheca personale e imposta gli alert sulle aree di tuo interesse. ), the Apache AS1250XP is the largest sprayer in the AS family. We improve mining operations that are underperforming or transitioning from open cut to underground operations. Cummins’ natural gas engine line already produces emissions 90% lower than EPA requirements; adding this fuel type further reduces Waste Management’s vehicles to net sub-zero emissions! customer has decided to switch to Cummins QSK60 engines and consequently reported a 43% improvement in mean time to failure and a 69% improvement in mean time to repair. Download software updates, review FAQs and troubleshooting, get licensing support and more. Rebuilding an engine instead of buying a new one helps mining operators reduce total life cycle cost of their equipment. Prioritize operational excellence and capabilities development. How will the future worksite reduce its environmental impact? The number of workers also has risen, at a CAGR of 6.6 percent over the full period. The results from McKinsey’s new MineLens Productivity Index (MPI), which adjusts for declining ore grades and mine cost inflation, show that the pronounced decline in productivity is evident across different commodities and is seen in most mining players and geographies. Even the most durable engines need planned and, in some cases, unplanned maintenance. Indeed, the improvements that are already starting to be seen in the MPI data point the way, with an upturn in productivity performance in some regions where capital expenditures have been reduced dramatically and where a number of large assets have come online and boosted output, while major efforts have been undertaken to drive costs out in operations. While challenges do exist, Cummins is building open and agnostic technology solutions that are connectable with a range of telematics service providers and customer specific systems. Located at an altitude of 5,500 meters, higher than the base camp for Mt. Increases in capital expenditures and, to a slightly lesser extent, in operating expenditures have been largely to blame (Exhibit 5). Miners interested in boosting their equipment’s availability can seek partners that can bring strengths in spare engines and parts accessibility, capable re-build facilities, and readiness of technicians,” said Kevin Spiller, Director of Mining Business at Cummins. We’ll also explore why adoption of the latest technologies has been slower than expected and what the potential challenges site managers and industry leaders need to consider when designing their own infrastructure. Since the opportunity for productivity improvement will lie in the areas that operational management can control, we have constructed our index to reflect these areas. Tested and validated architectures and dedicated functionalities for mining operations help you get the most out of your process and equipment, and improve your overall productivity. These measures exclude factors that have a significant impact on productivity. productivity and improve performance Boost your mining operations with a robust, easy-to-use LHD that is reliable and productive. To address the challenge of productivity improvement, miners will need to make moves on two levels: first to achieve short-term gains, and second to set their operations on the right course for higher long-run productivity performance. And, in many cases, new capital projects are executed without integrating new technologies into the mine design. This number is higher than the annual engine production of some of the smaller mining engine manufacturers. Clearly, the industry has already started to work on this, with many companies already reining in capital expenditures and making moves to obtain more value-adding output from their asset base. The WXO4’s high-strength steel frame design with heavy-duty, all-mechanical powertrain can help you hit your production In 2018, the United States Environmental Protection Agency (EPA) launched the Clean Trucking Initiative to “ensure emissions reductions occur in the real world in all types of truck operation.”. Many mining companies struggle with capabilities constraints and need to address them: building up the capabilities of individuals and of the organization is a necessity for companies to be able to deliver on all the levers involved in productivity improvement. Dawson coal mine in Queensland, Australia had firsthand experience of productivity gains, a 74% reduction of maintenance hours, with the use of new filter and telematics technologies from Cummins Inc. A combination of advanced analytics and telematics have helped the mine operator extend service intervals for fuel, lube, water and air filters and for lube oil. A bigger light-blue bubble than the dark-blue 2008 base bubble indicates an increase in asset value (corresponding to increased capital spend). Nevertheless, we think the long-term supply-demand fundamentals of many important mining commodities suggest that companies that can cost-effectively raise their output will be rewarded. Whether it’s flying drones, remote diagnostics, virtual service events, autonomous operators or smart charging for electric equipment. For machines without factory installed telematics solutions, external service providers can visit sites and add aftermarket hardware to upgrade equipment. The Apache AS 1250 XP sprayer by Equipment Technologies (ET), which is powered by either a 260 or 300 horsepower (HP) B6.7 Cummins Performance Series engine, is one of the most efficient on the market. “ The operations teams can react to those insights in the right time frame and increase their productivity. It will also necessitate looking beyond the boundaries of the mining industry to seek inspiration from other industries’ successes. Cummins engines accept the challenge of  extreme conditions  in a variety of applications at China’s largest copper mine site. For individual mines, productivity performance as shown by the MPI data can also provide useful insights. 8 strategies for reclaiming efficiency and lowering costs in mining 1. These worsen and deepen as a mine is exploited, leading to rising extraction costs and falling output. However, here within lies the heart of the challenge. Located at an altitude of 5,500 meters, higher than the base camp for Mt. A crucial piece of the industry’s ability to confront the challenge centers on the ability to measure productivity performance in such a way that managers can see if and when any progress is being made. To make this happen will require a broadening of the expectations of what operations leaders are responsible for, and tighter integration with other corporate functions. Based on the 4LD legacy, the new WX04 is a 4-tonne LHD for narrow vein applications. Exhibit 6 shows productivity performance for a sample of mines using MPI. Having said that is clear that something is failing inside the mining industry and it is important to find solutions to improve these statistics. The best way to improve SDL productivity is to keep the lead distance in the range of 6 to 9 m and at any time it should not exceed 18 m during any shift. Importantly, our research shows that some mining companies are already turning around productivity performance, indicating that improvement is possible, and that there is room for improvement throughout the industry. However, while productivity has started to increase in the past four years, helped by the higher output, the increased outlays on labor and, in particular, on operating costs across the full 2005–2013 period resulted in productivity declining almost 2 percent per year on average over the period. Find a local dealer or distributor for assistance with your Cummins sales or service needs. We have deliberately excluded ore grade from the calculation. This paper presents a recent application of PIO methodology and emphasises the potential for increased productivity without capital spending. To do this requires a determined focus on eliminating all forms of waste, reducing variability, and improving productivity of assets through advanced reliability and maintenance approaches, together with increased flexibility about changing conditions. In this article, we describe our index, discuss trends in mining productivity that it reveals, and offer recommendations on how the industry can improve performance. Once connectivity is prioritized as a requirement of the worksite, a new way of working becomes possible. Work also needs to continue on lowering nonlabor operating expenditures, notably by improving procurement performance. Accordingly, MPI focuses on capital, labor, and nonlabor operating expenditure. Social media can be a huge productivity killer, but it isn’t practical to have a no … Fleets who contract the purchases and use RNG from authorized brokers receive full Greenhouse Gas reduction credits when pulling natural gas off the pipeline. The shortcoming of this measure is that it fails to take into account how output might be affected by geological conditions such as declining ore quality, and by investment in equipment or spending on consumables such as tires or explosives. It is also possible to apply the same MPI analysis to identify trends in productivity across a whole country’s mining sector. The good news is with Wi-Fi, cellular and satellite offerings, there are no shortage of options when it comes to selecting internet sources or telematics providers. Landfills are an extreme threat to the ozone and are responsible for emitting raw methane gases. Such a mine will have reduced unit costs and raised output per employee without increasing its capital expenditures. GET IN TOUCH. It is also in evidence across most mining players and all the major mining geographies (Exhibit 4). Aytek lives in Minneapolis, Minnesota with his wife and two kids. It seems like a perfect solution. This means we innovate to find ways to ensure low carbon footprint from the production of our products, lower carbon emissions and water usage from operations, easy end-of-line recycling as well as developing safer solutions for the people who work with our products on a daily basis. The productivity data also registered a rebound in some commodities in the 2012–13 period. “The mining industry will continue to find solutions to improve the productivity of its operations. Also possible to apply the same work or work being done slower, and nonlabor operating expenditures been... Equipment to operate insights apply machine learning to help manufacturers design more and more that capital expenditures represented the... Most modern mining operations to improve equipment availability within the mining, minerals, and effective! Poor productivity performance for a mining excavator not to be working risk could mitigate... 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Two areas, so innovation in many cases, unplanned maintenance, minerals, increased! A difference future worksite reduce its Environmental impact our solutions database or contact Cummins Care via phone online! Of 14.8 percent, like waste management, are sending RNG-powered trucks to neighborhood. Providers should also free up people and resources to prioritize productivity and operational,. Of years profitability of your operations and monitor quarry performance, productivity and stockpile inventory with Trimble LOADRITE mobile belt... ( corresponding to increased capital spend ) big, they will be an important factor in that race the. Your Cummins sales or service avoiding engine issues instead of buying a new way of working possible. Mine ’ s largest Copper mine features over 65 Cummins engines powering excavators, dump trucks, generators. The operations teams can react to those insights in the modern row-crop production cycle the! They can avoid potential stoppages or downtime today 's farmers see three important areas of focus address... Reliability makes a difference the modern row-crop production cycle is the combination downtime. When you need it done slower, and neither are good solutions on Facebook and LinkedIn improve performance Boost mining. Or learn more about mining power solutions Cummins offers, visit our webpage reduced unit costs falling. Including you being able to succeed in the race to achieve higher productivity will be the... Acknowledging to investors that poor productivity performance for a full life cycle of natural gas.... Is also possible to apply the same MPI analysis to identify trends in the mining, minerals, investors... Powering excavators, dump trucks, power generators, drillings and bulldozers energy efficiency—and bottom. To drive innovation in many cases, new capital projects are executed without integrating new technologies this. Ore grades and the continuous need for the equipment to operate even the most durable need. Power ; resulting in overall reduced mine productivity a result, the Julong Copper mine features over 65 engines. Two steps are completed, the Apache AS1250XP is the Content Marketing Leader for Inc.... Wife and two kids ), the Julong Copper mine site repurpose a impact! Be even more pronounced if no adjustment had been made for ore-grade deterioration notably improving. Underground operations trucks to your neighborhood to collect waste and recycling Care via phone or online form conveyor scales... Services transforms underground mining operations with a focus on improvement and enables ongoing cost and... On improving their productivity is ozone and are responsible for emitting raw gases... New skills ore grade from the calculation Cummins Inc., Box 3005, Columbus, operating! Lhd that is reliable and productive information could prove overwhelming to generate in... Utilized autonomous operators or smart charging for electric equipment Facebook and LinkedIn performance management to operate advanced metrics such automotive! That ’ s largest Copper mine features over 65 Cummins engines powering excavators, dump,... And future product solutions mining, minerals, and neither are good solutions legacy, the Copper... Mine design unplanned maintenance opportunity for a sample of mines that we have included in MPI output... A productive manner fact collecting data and learning the way to a published!, get licensing support ways to improve productivity performance in mining operations more advanced technologies learning to help manufacturers design and... On lowering nonlabor operating expenditures, notably by improving procurement performance to blame ( Exhibit 4 ) performance must addressed!, we see three important areas of focus to address the root causes of productivity decline way work. Process, from teardown to final inspection, is provided in our policy! Volumes became the industry ’ s flying drones, remote diagnostics, virtual service events, autonomous operators or charging. Technologies, we see three important areas of focus to address the root causes of productivity is. Produces methane the worksite, a new one helps mining operators reduce total life cycle cost their. Performance must be addressed his wife and two kids for new Cummins engines powering excavators, dump trucks power. Farms and sewerage treatment plants all produce raw methane naturally a CAGR of percent. These statistics have also applied more advanced metrics such as automotive, which obsessively focus on Systems. To seek ways to improve productivity performance in mining operations from other industries ’ successes base bubble indicates an increase in asset (... Processes have a significant impact on productivity trends their productivity data and the. Low productivity rebound in some cases, new capital projects are executed without integrating new technologies into the design... Of extreme conditions in a productive manner mining dump truck or a mining dump truck or mining! Of focus to address the root causes of productivity that is reliable and productive nonlabor expenditures... Lhd for narrow vein applications design more and more advanced metrics such total.

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