Engineering & Mining Journal

NOV 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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66 E&MJ • NOVEMBER 2018 www.e-mj.com OPERATING STRATEGIES When red-lined maintenance-cost items start jumping out with alarming regularity from gray columns of spreadsheet and bud- get report fi gures, most maintenance man- agers look for ways to regain control. Two recent data-analysis products introduced by well-known industry suppliers highlight the wide spectrum of tools that are avail- able to make the process less painful. For example, RPMGlobal (RPM) an- nounced it has developed a Maintenance Cost Budgeting (MCB) solution that it claims fi lls a gap that the industry has struggled with for many years. MCB, said RPM, is about continually reforecasting throughout the year, not simply preparing a budget and forgetting about it. MCB is not a product but a process, accord- ing to the company, offering capabilities unlocked through RPM's Enterprise solu- tions that provide the ability to connect information from disparate systems. RPM Executive General Manager of Product Strategy Michael Baldwin said, "The whole point of a budget is to mea- sure and control costs through a defi ned time period. Without an accurate budget, you have nothing to control. Budgeting is a control mechanism. How do I control my part of the business so that it fi ts with- in the company's strategic plan? "Well in maintenance, I make minor changes very frequently that correct my course and steers me to the right destina- tion," said Baldwin. MCB is SAP certifi ed and capable of integrating with other ERP's, according to RPM. It is currently active at a variety of sites, where maintenance planners use it to provide accurate forecasts for not only each machine, but the entire operation. It is a process that starts from a zero base to build a budget and continually updates as changes occur. Non-zero-based budgeting uses historical trends to determine future spend, but in the maintenance world, future spend cannot be determined his- torically. Maintenance costs can change month to month and week to week, as the usage, age and condition of assets change. MCB provides zero-based budgeting for a maintenance department by using live maintenance plans and strategies. Any changes to any maintenance ac- tivity automatically update the mainte- nance-cost forecast so it is always live. "There are still a lot of operations that take last year's numbers and add a percentage to determine next year's bud- get. Even if you apply some rudimentary calculations to more accurately forecast an amount, the strategy is still fraught with danger as the technique uses dis- connected summaries of data to make an assumption that could have a massive im- pact on your bottom line," said Baldwin. RPM said MCB also takes budgeting ac- curacy a step further by incorporating de- partmental overheads such as workshops, employees, management and training, all of which are typically very diffi cult to track and budget within a specifi c department. The solution allows users to forecast not only planned strategy tasks (those with a defi ned frequency and date) but also those without a frequency. These are the tasks that will occur, but at an unspecifi ed time. The fi nal piece of the puzzle is linking machine hours back to the mine plan. If the mine's production plan is not being used to determine machine hours and therefore maintenance events, then it is effectively an assumption as to how that machine will be used. RPM said its scheduling solutions can provide the expected usage of each machine through each period of the plan. Meanwhile, diesel manufacturer Cum- mins announced that the company is now offering its Data-Enabled Mining Solution (DEMS) plus Fleetguard Filtration Intelli- gence Technology (FleetguardFIT) free-of- charge for 12 months on all new QSK50, QSK60 and QSK78 Tier 4 solutions oper- ating in the U.S. and Canada. According to Cummins, DEMS, intro- duced at MINExpo 2016, has proven to be a signifi cant benefi t to customers. For one mining customer, the company said it was able to reduce annual unplanned downtime costs by more than $110,000 per truck, and the early issue detection logic used in DEMS prevented progressive damage ex- penses by $100,000 per truck per year. By combining advanced hardware sensors and expert analytics, DEMS al- lows Cummins to monitor engine system performance and deliver accurate, re- al-time operating information. Experts at Cummins Care facilities around the globe analyze the real-time data and provide proactive recommendations. Miners taking advantage of this pro- gram will also have visibility into fi lter life and oil quality. FleetguardFIT is a fi rst-of- its-kind solution designed for Fleetguard fi lters. It includes pressure sensors for fuel, lube, air fi lters and a fl uid property sensor that monitors oil quality. Intelli- Gain Greater Control of Mine Maintenance Budgets RPMGlobal says its Maintenance Cost Budgeting (MCB) solution provides zero-based budgeting by using live maintenance plans and strategies.

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