Upload
pahiggins
View
652
Download
2
Tags:
Embed Size (px)
Citation preview
Condition Based
Asset Management
Program
MINExpo 2008
Background
2
Newmont One Nevada Goals (2006)
• Overall Goal - reduce One Nevada Costs applicable to sales to $300/ounce by Jan 2008
– Offset higher prices in labor, diesel, cyanide, u/g contract services costs
– YTD 2006 $425 YTD 2005 $327
• Maintenance is a piece of this pie
– This project represents approx $2.00 / ounce
• Make this a team effort gaining best from:
– Newmont (One Nevada, Batu Hijau, Peru experience)
– Dingo
– Cashman / Caterpillar
– ConocoPhillips
– Other Newmont OEMS
• Desired relationship:
– Sustainable change, owned by Newmont
– Accountability for results on both sides
– Win-win
– Long term
3
4
Previous Experience
0 5,000 10,000 15,000 20,000 25,000
785 Engine
785
Transmission
789 Engine
Pre 2002 (LT,TC only)
Post 2002 (LT,TC Only)
2004-2006 (All sites)
Hours
Program Scope
5
Scope - Process
•Identify opportunity
•Quantify Financial Return
•Solution
Business Case
•Focus
•Change Management
•Deliverables
•Tools
•Processes
Implement
•WeeklyMeetings
•Measurement
•Condition Intelligence
•Periodic Coaching
Sustained performance
6
6-12 Months Ongoing1 Month
Scope – Newmont Operations
Surface
Twin Creeks
Gold Quarry
Phoenix
Underground
Leevilee
Deep Post
Process
Twin Creeks Mill
Phoenix Mill
SAL
Mill 5
Mill 6
Scope - Programs
Breakdown Avoidance
• Condition Intelligence
• KPI Measurement
• Weekly Meeting
• Troubleshooting Guides
• Sample Point ID’s
Component Life Extension
• Monthly evaluation of all
components:
– approaching expected life
– being “extended” past expected life
and in critical condition.
• Incorporates condition monitoring
data, performance tests and
financial data.
• Monthly on-site component
evaluation review with equipment
group “owners”.
8
Results so far…
9
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000D
ec-0
6
Ja
n-0
7
Fe
b-0
7
Ma
r-0
7
Ap
r-0
7
Ma
y-0
7
Ju
n-0
7
Ju
l-0
7
Au
g-0
7
Se
p-0
7
Oct-
07
No
v-0
7
De
c-0
7
Ja
n-0
8
Fe
b-0
8
Ma
r-0
8
Ap
r-0
8
Ma
y-0
8
Ju
n-0
8
Cu
mu
lati
ve $
Actual Savings Target Savings Project Costs
Program Results
Cash flow breakeven
in 3 months
Total project Payback in
July 2007
Total project cost $3.5MM
10
Total Benefits to June 2008
$15,111,271
11
Projects/ Sites 12/53 7/34 4/16 1/3 1/5 1/2 1/1
Return on $1 $3.07 $3.70 $5.20 $2.10 $5.00 $4.32 $3.07
Focus
All typesComponent and
lube extension
Breakdown
avoidance
Component
extension
Component and
lube extension,
Breakdown
Avoidance
Component and
lube extension,
Breakdown
Avoidance
Component
extension,
Breakdown
Avoidance
Months 237 132 84 39 36 36 36
Program Return on Investment
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
Retu
rn o
n e
ach $
investe
d
General Foreman comments
12
“The program forces communication between the planners and the shop floor – they track down shop floor technicians to get feedback on actions taken as a result of the CI recommendations and work order generated.
Things are going well with the CBAM program; we have made great improvement from the start.”
Ken Andress (Newmont East)
“This will allow our guys to see what is really going on with their components. They get expert condition reports back that will give them specific instructions of what is wrong and how to fix it; vs. the Fax we get now.”
Bilbo Bessert (Process Plants)
Observations
13
How is CBAM different?
14
CBAM is complete system which delivers results, not technology.
Condition Intelligence (find) + Action Tracking (act) produce results,
measured monthly accounting of value of our service
•Find Problems
•Technology
Focus
•Do Something
about them
•Results Focus
Condition
Monitoring
Focus
CBAM
Focus
Key Learning
• CBAM is an ongoing series of Daily, Weekly, Monthly, Quarterly and Annual
activities
• In today’s dynamic environment, Mining companies struggle to maintain the
disciplined routine required to ensure benefits are derived
• Three long term customers have decided that Dingo provides a cost effective
way to ensure the benefits of CBAM, despite strong initial desire to bring totally
in-house
• Newmont experience has been similar.
• Site based planners have a different career path and experience to Dingo
project managers
• Dingo has shifted offering from Project to System in response to these trends
15
The Future
16
Global Labor Shortage Trend
•CBAM enables current workforce to focus on critical activities.
•CBAM enables savings from IP, not in house site-based people
One Nevada - One Database
1818
Group Trending
• All on one database
• Group Trend for 33 Newmont
Nevada 793D Engines
• A powerful way to determine if
results are abnormal for the
component
• Scattergram allows easy, accurate
alert limit settings
Global System
19