Mining & Construction Transforming your fleet performance
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- David McLaughlin
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1 Mining & Construction Transforming your fleet performance
2 Giving you greater focus on your business Today s difficult economy challenges organisations within the mining and construction sector to deliver more for less. This pressure can often result in companies spending disproportionate time on reviewing efficiencies and processes rather than focusing on growth. Babcock recognises that, whilst equipment is core to your operation, the day to day fleet management isn t a core activity. You need optimum availability and performance; but in reality the management of this in-house can lead to a costly centralised function or a more localised activity with limited overview on costs and standardisation across the fleet. We are working with leading sector organisations, such as Lafarge and Aggregate Industries, to help them to transform the performance of their fleet, whilst enabling them to focus on their core business. ALCAMiE, our proven asset management approach, is rooted in an engineering-led whole life solution that is both customised and delivered in partnership with the customer. Our independence is valued by our customers, who benefit from decisions based on what s best for them, now and in the long term, rather than being hooked into a single manufacturer/ dealership relationship that can prove costly. We actively challenge the supply chain and have rigorous procurement processes in place that leverage a range of customer-led advantages. Whilst our focus is on improving equipment availability, we believe that our teams should constantly be adding value through innovation and sharing best practice. That s why we review new industry developments, helping you avoid the quick fix snake doctors, and enabling you to standardise processes and introduce tried and tested innovations that deliver real benefits. We share the highest commitment to health and safety with our customers, introducing best practice at every opportunity. Delivering proven whole life fleet management capability Partnering with you - every step of the way We recognise that your fleet management will be unique to you. That s why Babcock works closely with our customers to deliver a customised solution that meets their immediate and future needs. As your independent partner, we add value every step of the way innovating, delivering efficiencies and working in partnership with you whatever challenges you face. Research and development Fleet planning & advice Strategy, design and fiinance Asset financing; purchase & leasing Forecast reviews Disposal, renewal & recycling Auction service Market watch Fleet optimisation Your trusted partner knowledge Component life span Supply chain management Optimal service programmes Procurement & transformation Fleet MIS Centralised costs & control on every asset Training Streamlined mobilisations Proactive health monitoring Integrated telematics platform Operating, maintenance & monitoring
3 Working with our customers Babcock works at the heart of our customers operations, planning together for future success. This is achieved through building a long term relationship as a trusted partner, focused on working with customers to deliver outcomes that benefit their organisation now and in the future. Well managed complex assets Assets can be complex for many reasons - from their technical detail, to their geographical spread or the skills needed to service and maintain them. Babcock has a pool of knowledge, accumulated through working across a variety of industries. This enables us to address problems our customers face in managing complex assets, and we work in partnership to solve them. A single independent partner As the single point of contact, Babcock provides an independent bridge between customers and manufacturers, supporting any mix of assets with total objectivity. Babcock helps customers alleviate the management of a complex supply chain by ensuring that they only need to work with one organisation from start to finish. Safe working environment Babcock has a fully processed approach to health and safety, carrying out regular risk assessments and checks, sharing best practice and delivering regular toolbox talks. Innovation is key, and Babcock works on projects with the customer to effect meaningful changes. Shared risk and reward Our experience enables us to help customers understand their risks and reduce their impact. We work in partnership with them to share those risks, mitigating their impact today, and planning together for mutual future success. This can include innovative financing models that inject cash back into the customer s balance sheet. Greater customer focus By working with Babcock, customers can focus on more valuable areas that help the company to develop such as mine permitting and planning, processing and logistics. Innovative solutions Babcock is not bound by existing industry technologies, processes or systems. We encourage our customers to think differently about how they procure, manage, and decommission their assets to get the most from them. 30,000 BABCOCK MANAGES OVER 30,000 VEHICLES AND MOBILE EQUIPMENT WORLDWIDE
4 Core Asset Management Our unique approach It s clear to see the value that Babcock has delivered, even in a short period of time. Their excellent fleet management reporting tools enable better and quicker decision making. Xavier Therin VP Land Mineral Resources and Mining, Lafarge ALCAMiE is our sector unique approach to asset management, providing a proven engineering-led customised solution to managing complex fleets. Key customer driver Optimise availability, confidence & performance Key customer driver Reduce ownership and whole life costs Key customer driver Core business focus for competitive advantage Key customer driver Reduce costs and non-core activities Using ALCAMiE, we manage the complex combinations of technical assets in challenging environments, tailoring each solution to meet individual customer requirements. This enables you to focus on core-business activities while Babcock optimises fleet performance and availability, providing information that guides long term investment decisions. What ALCAMiE delivers to organisations Fleet Reporting ALCAMiE ALCAMiE ALCAMiE Managed Service Centre Customer Accounts Function ALCAMiE Key operational outcomes Key management outcomes Access to a responsive managed service desk and clear communication of asset status and job criticality Increased asset availability for effective operational planning and effective placement of resources Clear performance, availability and status reporting Global fleet information to drive future investment decisions Access to experts for fleet procurement advice Reduced cost of ownership by up to 20% Removal of depreciation from balance sheet (if required) A single monthly availability fee aligned with actual production volumes Increased through-life availability Performance & Payment regime for performance measurement and accountability Key operational outcomes Direct financial savings Key management outcomes Indirect financial savings Maximising availability through proactive rebuilds and condition monitoring Direct financial savings Our experienced asset management team achieves savings in maintenance costs against industry average Through-life supply chain management and access to bulk purchasing agreements Indirect financial savings Lower fuel costs from improved fleet information and usage data Reduced costs of managing maintenance internally Reduction in transactional processing one invoice from one supplier rather than numerous invoices from multiple suppliers Fleet Reporting Integrated Management Information Systems Live Availability Monitoring Cost of Ownership by Asset Core Asset Management Managed Service Centre One-Stop-Shop Job Prioritisation by Criticality Managing Suppliers Customer Account Function Removing the surplus fleet through optimisation of use saving up to 10% of the fleet Reduced supplier management requirements one supplier only Common Operational Approach Centralised Control Benchmarking Performance Procurement Leverage Reduced capital costs and upfront cash injection through unique off-balance sheet approach, including capital-free asset renewal programme Condition Monitoring Rebuilds Prior to Failure Health and Safety Continual Improvement Culture
5 Adding value to your operation Babcock works closely with customers to share best practice and innovations at every opportunity. Tyres Babcock delivers savings to customers by minimising tyre operating costs, maximising equipment availability and productivity, as well as leveraging tyre supplier/manufacturer relationships. In looking to extend a tyre s life, Babcock delivers best practice in tyre management and maintenance, as part of a wider fleet management programme, and produces regular management reports on local and national performance. Lubes & oils We work with customers on improving fluid and lubricant management through following the manufacturer s recommendations, encouraging good contamination control and performing dynamic condition monitoring. As part of this, Babcock recommends a fail safe system that uses special dispensing hardware and prevents service personnel from adding the wrong fluid to the machine. Babcock s response fleet Through its new fleet of mobile maintenance units, Babcock is looking to provide customers with an increased level of support, efficiencies, greater flexibility and information on assets. The fleet is driven and manned by skilled technicians who are located in key areas. This provides support for heavy mobile equipment whether it be assessing a Criticality 1 equipment failure or carrying out repairs when already on site. Procuring the best option We use our Fleet Selection Protocol when procuring new equipment with the customer. This is designed to flag the key decisions that need to be made when selecting equipment, taking a straightforward approach towards the processes, activities and process outputs that influence or are impacted by fleet selection. Telematics Babcock is working to combine varying manufacturers telematic data platforms into a single dashboard within ALCAMiE to deliver consolidated quality that can help drive quicker and better strategic decisions. This consolidated information reveals a wealth of key data including the amount of fuel being consumed (fuel burn), location, system faults, driver behaviour, and engine idling time. This data provides valuable insight as to what proactive or preventative repairs or maintenance are necessary to maximise equipment efficiency and increase productivity. The 3 Rs Every asset reaches a point in its life cycle when reliability diminishes and an insightful financial and technical decision has to be made to either Repair, Rebuild or Replace the asset what Babcock calls the 3 x Rs. We recognise that in certain cases it may not be viable to repair or rebuild an asset - and therefore a replacement would be more appropriate as a result. However, where viable and in the customer s best interests, we will always look to rebuild equipment to deliver a prolonged operational life span. 20% BABCOCK LOOKS TO DELIVER SAVINGS OF UP TO 20%
6 Proven international delivery Babcock recognises that the right solution starts with a seamless transition that minimises impact on the customer s operations. We have proven capability in delivering the full mobilisation of large asset management contracts within new territories, regardless of an established Babcock presence. This was successfully used in mobilising Aggregate Industries heavy mobile equipment within the UK, and Lafarge s complex fleet of vehicles and equipment across the UK, Canada and the U.S. Whilst Canada and the U.S. were new territories for its Critical Services business, Babcock swiftly established an operational base to manage and support the contract within North America. Underpinned by ALCAMiE IT is critical in preparing for mobilisation and, in new territories, requires robust systems to be installed to support all elements of the service including capability for high speed data transfer. This is particularly important in supporting ALCAMiE which delivers a live operating system, displaying customer fleet availability in real time through wall boards within the managed service centre and via the secure web portal, and is also available to customers. Data is essential for Babcock - both to understand the fleet before mobilisation, and to optimise its performance once operational. Once the fleet information is captured, Babcock is quickly able to identify efficiencies by sharing and analysing information from its global asset management operation. Building the partnership Babcock recognises the importance of gaining the trust of the customer s team. Within North America, we quickly established a presence with strategically placed regional managers. This quickly helped to build strong relationships with Lafarge s people and suppliers, and share information in a way that benefits Lafarge s operations. Early engagement with the supply chain is critical for a swift and seamless transition. Babcock looks to segment suppliers into three tiers to reflect their relationship with the customer and puts together an engagement plan around the key activities to ensure a continuation of service on Go-live. 28,000 BABCOCK EMPLOYS 28,000 PEOPLE ACROSS THE WORLD
7 Delivering to customers Lafarge Babcock is helping Lafarge, a global leader in building materials, to reduce costs and increase equipment availability by transforming the way it manages its complex fleet of heavy mobile equipment (HME) across the UK, US and Canada. The Challenge Babcock faced a series of challenges in delivering the Lafarge contract which included: Delivering efficiencies across a highly complex mixed fleet Gathering global granular data on the whole life costs and performance of the fleet Dynamic mobilisations within set timeframes across different territories Optimising commercial relationships with a variety of manufacturers The solution Babcock successfully achieved a seamless transition in the UK and North America, setting up a standalone management team and control centre that was in tune with the culture and dynamics of the territory. Babcock tailored ALCAMiE, its proven fleet management approach, to help Lafarge optimise fleet availability and reduce costs. Following mobilisation, the supply chain was challenged to find ways of delivering a more efficient process. Babcock also put in place a formal procurement process with suppliers and manufacturers which gives a clear message to the market about how they need to engage with Babcock and Lafarge. The outcome 27,000 jobs managed since 2011 Over 50 million invested in new assets 153 rebuilds 15% reduction in North American fleet saving 21m in replacement costs Increasing supplier efficiencies for Lafarge NEWS READYMIX WESTERN CANADA 10 - YEAR CONTRACT AWARDED TO BABCOCK. 800 ASSETS ACROSS 45 SITES
8 Delivering to customers Aggregate Industries Babcock is working with Aggregate Industries (AI) to improve its fleet performance through an innovative industry solution that focuses on whole life asset management. The challenge In delivering the contract, Babcock faced a series of challenges across AI s 150 UK sites that included: Managing and improving the availability of over 540 HME a high number requiring a resolution within 2 hours Management of a complex supplier base Taking ownership of workshops and required staff Bringing together the different fleet processes and management practices used across the sites A seamless transition Babcock was credited by AI for a seamless transition to the new service which included: Outcome Since commencing delivery in June 2013, Babcock has delivered 98% availability, carried out over 4,500 jobs and overseen 36 rebuilds. Key outcomes of Babcock s delivery includes: Managed and reduced hire activity Cost savings through identifying & disposing of surplus machines Babcock mobile maintenance engineers allocated to providing service improvement Rebuild of long term standing assets to replace those due for disposal Procurement of refurbished replacement parts resulting in large cost savings on new parts being fitted Collating data on AI s HME to provide critical information for managing the service Fully operational managed service centre in place Successful TUPE of critical staff Full communications programme Full supplier engagement prior to Go-live
9 Babcock s reach across the world About Babcock - Leader in engineering support services - Over 28,000 people employed across the world - Over 200 offices worldwide - 42 billion worth of assets managed worldwide Babcock Mining and Construction offices For further information, please mining.construction@babcockinternational.com Europe Headquarters Babcock International Group Blue Fin Building 110 Southwark Street London SE1 0TA Tel: North America Headquarters Babcock Support Services (USA) LLC 1954 Greenspring Drive, Suite 480 Timonium MD USA Tel: Australia Headquarters Babcock International Group 4E, Endeavour House 1 Forth Avenue Mawson Lakes SA 5095 Tel: Babcock is based across the world; please contact one of the offices above to find your nearest office.
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