Driving Transformational Change. Innovative Solutions for Optimising Performance in Quarrying & Mining Fleets

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1 Driving Transformational Change Innovative Solutions for Optimising Performance in Quarrying & Mining Fleets

2 Babcock International Group: In Brief The UK s leading engineering support services organisation Headquartered in London Delivering circa 600 services across six continents Employing a workforce of c.26,000 skilled personnel Annual Revenue over $6 billion Order book circa $26 billion Managing customer assets currently worth over $81 billion Established in1891 FTSE 100 company listed on London Stock Exchange

3 Delivering complex and critical support services around the globe Teaching Vital Skills Managing Critical Assets Delivering Complex Programmes

4 Providing critical international support to our customers operations Canada: Nuclear and Mining & Construction Bulgaria: Power Design Japan: Nuclear Design & Support USA: Mining & Construction France: Nuclear and Mining & Construction Middle East: Aviation Support South Africa: Power Generation, Transmission & Equipment Australia: Asset Management Babcock also supports the BBC s shortwave transmitter stations around the world: Ascension Island, Cyprus, Oman, Seychelles, Singapore and Thailand

5 Managing an asset base of over $81bn Babcock Manages over 30,000 mobile assets Babcock manages over 176,000 equipment stock lines 5

6 MOBILE ASSETS VIDEO 6

7 The Babcock Value Proposition ReFinancial Savings Operational Improvements Transfer of Risk Core Business Focus Release of Capital Catalyst For Change Aligned KPI s 7

8 The Babcock Value Proposition 8

9 Market situation (Babcock view) Focus is on Extraction / production tonnage Actual volume of assets often unknown Various equipment specification policies Poorly measured asset utilization Inability to measure asset performance Lethargic maintenance supply chain Poor daily / weekly check regimes Reactive maintenance culture Unlikely to measure true Whole Life Cost 9

10 Market data Entrenched complacency in reporting fleet availability 80% availability reported, but only 38% utilisation achieved Operational delays accounted for 32% Unproductive working hours accounted for 20% You can t manage something if you don t measure it....honestly! 10

11 The journey to asset management maturity 11

12 Asset management objectives 12

13 Asset lifecycle availability management 13

14 Fleet categorization Criticality 1 Front line critical equipment Criticality 2 Periodic usage equipment Criticality 3 Spares to support 1 and 2 above 14

15 Fleet Selection Protocol (FSP) The current OEM market place provides an ever greater choice Understanding the full business requirements is key A matrix management approach can deliver the right assets whilst ensuring lowest whole life costs The Fleet Selection Protocol is just the first stage in ALCAMiE

16 Fleet optimization Core Fleet Core operational fleet Seasonal Peak Fleet Used to meet operational peaks Maintenance Float Covering planned maintenance Accident Float Covering accidents & damage Shadow Fleet Available for transfer / disposal 16

17 Centralized control 17

18 Optimizing maintenance costs Standardise fleet specifications Standardise maintenance regimes Group and combine maintenance tasks Establish standard times for maintenance Plan maintenance re-builds to prevent technical failures Carry out maintenance around operational working peaks 18

19 Condition monitoring Pro-active machine health monitoring Collection of key data Performance strategy delivered through: Equipment maintenance history Use equipment data (telemetry) Measure fuel burn, idle time, bucket/skip loading Carryout and use Fluid Analysis reports Professional review of defect trend data and inspection reports Maintain site (haul roads) Enables informed decision making 19

20 Supply chain performance Supplier Selection: Technical and logistical capability Price Quality Health, Safety & Environmental credentials Performance Management: Management review and reporting Service Level Agreements (SLAs) Supply chain audits Performance KPI s Adherence to Agreed Terms Maintenance Schedule Adherence Calibration and Certification Quality of Documentation Documentation Receipt Customer Feedback 20

21 Continuous Improvement Culture Objectives Failure prevention Lower operational cost base Improve equipment performance Outputs Drive OEM specification changes Reduces equipment Whole Life Cost Lower cost per tonne Regular small incremental steps 21

22 Optimizing systems & data Use or develop a suitable asset management system Measure: True asset utilization (hours / miles) True downtime Actual maintenance spend v planned spend Warranty recovery rates Whole life costs 22

23 Benchmark performance 23

24 Performance dashboard 24

25 Management reporting Tailor incident management software One safe source Monitor response times Proactive alarms Custom reports External - Customer reporting - Supplier reporting - Performance KPIs Internal - Resource optimisation - Activity prioritisation - Cost control 25

26 What you can achieve. Increased Fleet Availability Machine Performance Management Supplier Management Procurement Leverage Fleet Optimization 26

27 Example achievements British Airways Maintain and manage 4,000 specialist vehicles Reduced fleet size by 15% in first 18 months Reduced overall cost contract year on year by 16% Ministry of Defence Construction Vehicles Supply, manage & support 2,500 Army Construction vehicles Reduced fleet size by 25% Increased availability performance Lafarge Availability contract covering UK / North America & Canada Optimized fleet by 5% and increased availability Invested $30m in new equipment 27

28 Key messages T OTAL LIFE COST R U C K 28

29 Key messages T OTAL LIFE COST R EAL TIME SYSTEMS U C K 29

30 Key messages T OTAL LIFE COST R EAL TIME SYSTEMS U NDERSTAND YOUR DATA C K 30

31 Key messages T OTAL LIFE COST R EAL TIME SYSTEMS U NDERSTAND YOUR DATA C ENTRALIZE FLEET MANAGEMENT K 31

32 Key messages T OTAL LIFE COST R EAL TIME SYSTEMS U NDERSTAND YOUR DATA C ENTRALIZE FLEET MANAGEMENT K EEP AHEAD OF YOUR COMPETITION 32

33 Robert Caprile - Business Development Director

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