Evaluating the ROI of Technology for Aggregates Chi… · Strip Drill Blast Load Haul Crush Waste F W E E E E E E F F F D D D D D D ... Reduced machine hours reduces fuel cost,

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1www.conexpoconagg.com

Evaluating the ROI of Technology for

AggregatesElliot Chisholm & Tony Gianni

#F11

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Transforming the way the world works

Overview

• Company founded in 1978

• Publicly traded on the NASDAQ since 1990

• 2014 Revenue $2.5B; 8,000+ employees

• Customers in 150+ countries

• Transforming industrial work processes through integrated positioning, communications andinformation technologies

• Over 2,000 patents issued

Unique Position

• Rich domain knowledge

• Field-centric

• Solutions focused

• Mixed fleet support

• OEM partnerships

• Global reach

• Local support


Presenter Introduction

• 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


“Return on Investment”

Improvements in• Revenues• Costs• Safety• Environment

Versus• Money spent• Time spent


Quarry Work Process


Extraction

• Load correctly/ improve haul truck loading

• Manage blasts

• Reduce cycle times

• Higher equipment utilization

Processing

• Increase profitability

• Monitor and improve crushing and screening

• Reduce downtime

• Measure production and throughput

• Calculate stockpiles

Load-out

• Measure and improve loader efficiency, performance, truck cycle times and customer satisfaction.

• Track materials

• Load every truck safely, quickly and accurately

Transport Distribution

• Manage fleets with real-time vehicle location and condition.

• Highlight operational improvements

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

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The Connected Quarry

Lean Operations

1. Task Productivity 2. Process Productivity 3. ContinuousImprovement

EXTRACTION PROCESSING LOADOUT


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Labour

Energy/Fuel

Location/GPSWeight

Downtime

Fill level

Secondary

crusher

Screen

Surge

Pile

Re-crush

Blending

Wash

Plant

Tertiary

crusher

Product Piles

Strip Drill Blast Load Haul Crush

Waste

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Product Offering

1. Task Productivity

EXTRACTION PROCESSING LOADOUT

• Pit loading scales

• Haul Truck Monitoring

• Drill positioning

• Dredge positioning

• Conveyor Belt Scales

• Downtime Entry

• Loader scales

• Loadout integration

• Conveyor Belt Scales

InsightHQ - Information Management Portal


Performance Indicators


Essential performance metrics for quarries

• 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


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

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Sample Quarry


Sample Quarry Operation• Production:

o 900,000 ton theoretical capacity

o Selling 730,000 tons per year, at $10/ton

• Fleet:

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

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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.


Haul truck management


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.


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


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


Cost improved by 11 cents/ton,With a system that costs about 2.2 cents/ton (over 7 years)

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ROI: Extraction

Additional Benefits:

1. Accelerate Operator learning curve Achieve more than the above, or faster

2. Improved Safety1. Ensure trucks are loaded appropriately for the circumstances priceless


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.


Monitor production and empty run time


Stockpile management

600 50


Effect of empty run (black belt) time

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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

Overall reduction in operating cost, reduction in power consumption and maintenance and increase in management productivity by remote monitoring of all sites

Internet


Cost improved by 10 cents/ton,

With a system that costs about 1.5 cents/ton (over 7 years)


ROI: Processing Summary

Additional Benefits1. 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


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).


Loadout Management System

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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


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

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



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).



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



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

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Operator management


Cost improved by 17 cents/ton,With a system that costs about 1.5 cents/ton (over 7 years)


Load out: Summary

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 priceless

3. Improved Safety

Keep operators in their machines, keep driver in their trucks,and keep other people away priceless


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.

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.


Performance metrics improved

• Throughput per hour, cycle times

• Utilization

• Cost per hour

• Sales / Extraction ratio

• Customer Satisfaction

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Financial Benefit Achieved

Cost improved by 38 cents/ton,

With an investment of 5.2 cents/ton (over 7 years)


Video


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Documents

Evaluating the ROI of Technology for Aggregates Chi… · Strip Drill Blast Load Haul Crush Waste F W E E E E E E F F F D D D D D D ... Reduced machine hours reduces fuel cost,