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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
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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
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“Return on Investment”
Improvements in• Revenues• Costs• Safety• Environment
Versus• Money spent• Time spent
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Quarry Work Process
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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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D
W
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L
F
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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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F
F
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WD
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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
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Performance Indicators
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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
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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
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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
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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.
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Haul truck management
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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.
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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
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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
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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
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Processing
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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.
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Monitor production and empty run time
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Stockpile management
600 50
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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
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Cost improved by 10 cents/ton,
With a system that costs about 1.5 cents/ton (over 7 years)
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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
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Load Out
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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).
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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
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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
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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
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Load out: Improvements
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).
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Load out: Improvements
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
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Load out: Improvements
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
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Cost improved by 17 cents/ton,With a system that costs about 1.5 cents/ton (over 7 years)
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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
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Summary
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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.
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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)
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Video
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