Cummins engines accept the challenge of  extreme conditions  in a variety of applications at China’s largest copper mine site. Rebuilding an engine instead of buying a new one helps mining operators reduce total life cycle cost of their equipment. This paper presents a recent application of PIO methodology and emphasises the potential for increased productivity without capital spending. The initiatives described here are important enablers of those productivity improvements. Not only does this have significant environmental sustainability benefits, it also lowers operating costs – which is a big win for our customers," he added. If … Nevertheless, the decline may be less surprising when we take into account the fact that the industry has just ridden a demand supercycle and has succeeded in expanding production of certain major commodities by 50 percent or more over the past decade. Probably the most important are the variable nature of ore grades and the depth of the ore body. Dropping the sails and powering up with Cummins, How technology can help customers save over $30 million in fuel and avoid enough pollutants to fill a 15-mile long train. With such high costs associated with downtime, there is no question how important it is to improve equipment availability within the mining industry. “The mining industry will continue to find solutions to improve the productivity of its operations. 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. George said, “By having a total picture of what’s happening we can find patterns, which gives us insight to how mining operations can improve. It is also in evidence across most mining players and all the major mining geographies (Exhibit 4). Haul trucks powered by Cummins QSK60 engines have continuous uptime in this severe environment, making it the top engine of choice at Julong. Repurposing methane produced from landfills for a more sustainable refuse market, Machine of the Month: Apache AS1250XP Sprayer, Digging Deeper: Five ways to boost the availability of your mining equipment, by Aytek Yuksel, Content Marketing Leader - Power Systems. 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. Condition-based maintenance, offered through PrevenTech, is at the core of telematics and helps miners improve equipment availability by enabling miners to prevent unscheduled maintenance, and to better plan scheduled maintenance. 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. What is clear is that with the collapse in mining profitability over the past three years, the industry is seeking once more to raise productivity. "They are also more productive on the farm, saving farmers eight percent in fuel with an overall combined fuel and Diesel Exhaust Fluid (DEF) saving of three percent. While you are reflecting on it, take a look at how a Chilean mine operator saved over $1M and minimized downtime by taking advantage of telematics and data-enabled services. 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. Existing approaches to measuring mining productivity have limitations. For individual mines, productivity performance as shown by the MPI data can also provide useful insights. How much money would you have saved if you knew what component to change and when to change it? 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. If you’re like most modern mining operations, you’re facing relentless pressure to increase efficiency and reduce costs. Combined with a commitment to monitor productivity performance, they will be an important factor in that race. To learn more about how Cummins is powering a world that’s “Always On,” visit our webpage. Independent project analysis in … Our research identifies that capital expenditures and nonlabor operating expenditures have been the main drivers of the productivity decline. No. Compared with industries such as automotive, which obsessively focus on productivity gains, the numbers seem astonishing. Reduce Distractions. ... specialized consulting teams identify improvement opportunities and implement solutions to rapidly close the performance gaps. These worsen and deepen as a mine is exploited, leading to rising extraction costs and falling output. Aytek lives in Minneapolis, Minnesota with his wife and two kids. And then of course these new sets of technology do require new skills. Using work time to exercise may actually help improve productivity, according to a study published in the Journal of Occupational and Environmental Medicine. Let’s define equipment availability as the duration the equipment is ready when it matters. How smart is the worksite of the future ? 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. This decline stands after adjusting for external factors such as deteriorating ore grades and mine cost inflation, including escalations in the prices of mine inputs such as fuel and explosives. 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. At the same time, mining companies should use advanced analytics to harness the potential of the vast amounts of data generated in typical modern mining operations in order to boost productivity-improvement initiatives. Accordingly, MPI focuses on capital, labor, and nonlabor operating expenditure. With a few notable exceptions, it’s also unclear who is mandated to drive innovation in many mining companies. GET IN TOUCH. 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”. To that end, we have developed a metric—the MineLens Productivity Index (MPI)—that enables mining managers 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. The need for a highly effective mine is ever more present today, especially given the volatile and changing market conditions. With a specific reference to heavy-duty trucks and their impact on the environment, the refuse market has a unique opportunity to increase their use of renewable resources. Sustainable innovation. Here is a real-life example on how engine reliability makes a difference. If … As a full flow-sheet provider to the global mining industry, we have the knowledge and experience to enable your mining … Mining operators can reduce their downtime and prevent financial losses by leveraging spare engines while their primary engines are going through planned or unplanned service. It is important to note that the productivity decline would be even more pronounced if no adjustment had been made for ore-grade deterioration. Reduce capital... 2. Location and capability of these facilities are critical since an average mining dump truck engine weighs 20,000 pounds, equivalent to five midsize passenger cars combined. The WXO4’s high-strength steel frame design with heavy-duty, all-mechanical powertrain can help you hit your production Even the most durable engines need planned and, in some cases, unplanned maintenance. Having said that is clear that something is failing inside the mining industry and it is important to find solutions to improve these statistics. But the TFP approach measures output in terms of value added, and so is handicapped in two important areas: it is influenced by changes in geological conditions such as ore-grade quality, and it is affected by commodity prices, which are constantly moving. Such a mine will have reduced unit costs and raised output per employee without increasing its capital expenditures. 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. Located at an altitude of 5,500 meters, higher than the base camp for Mt. Xcoal Mining Services transforms underground mining operations to improve productivity, safety and profitability. It could cost the mine operator over thousand dollars per hour for a mining dump truck or a mining excavator not to be working. 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 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. Find your nearest Cummins professional by visiting care.cummins.com or calling 1-800-Cummins. 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. For example, the potential to implement advanced dispatching processes in underground mining operations is clear, but it has still not been adopted at scale. By digitizing your underground mining operations, you are not only improving safety, but also enabling your staff to achieve breakthrough performance in all areas of the mining life-cycle. By using this Site or clicking on "OK", you consent to the use of cookies. How? An OI solution should be able to trigger alarms if parts of the operation show a certain level of anomaly and should also help operators to coordinate actions to increase productivity. © Copyright 2019 McKinsey & Company | P.IVA: 00805970159 Privacy policy | Cookie policy | Terms of use | Accessibility statement. Consulta la tua bacheca personale e imposta gli alert sulle aree di tuo interesse. Talk to the experts in high-performance mining operations. Let’s define productivity as getting the job done faster, and increased productivity helps miners do more with less. 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