© 2019 aveva group plc and its subsidiaries. all rights ... na 2019 day 1...

Presented by:

Session ID: MMM-01

Optimize the Value Chain from Pit to Port


Ammar Wahab, Global Sales Director

November 12th, 2019

DIGITAL TRANSFORMATION across asset and operational life cycle

© 2018 AVEVA Solutions Limited and its subsidiaries. All rights reserved.

DESIGN CONSTRUCT MAINTAIN

PLAN &

SCHEDULE

MONITOR &

CONTROLPROCURE REVAMP

OPERATE &

OPTIMISE

Operations

life cycle

Asset

life cycle

Agenda


Problem Statement

Our Solution

Use cases

Case Studies

Operations Management

Case study

●The supply chain is a balance of two key dynamic factors:

● Resource Availability Push (Supply) – What the mining company can

supply, how much and what quality.

● Market Pull (Demand) – What the customers want (product, quantity,

quality) and when they want it. How much they are going to pay for it.

These dynamics are constantly changing

Customer - Market Pull

(Demand)

Mining Company - Resource Availability Push

(Supply)

Value Chain Dynamics

Customer Needs and business imperative

Legacy of Point Solutions for Supply Chain Management

Reference architectures

• Different Solutions for Planning & Scheduling

• Different Scheduling Priorities

• Different Process Models

• Different Constraints

• Different Optimization Requirements

• Different Maintenance Plans

• Opaque, Point Answers

• Needs Toolset Expertise

• Discourages Collaboration

• Prevents Process Improvement

• Slow Decision Making

• High Maintenance Effort

Gaps & Lost Opportunities from Point Solutions

ShippingPortLogisticsProcessingMine Operations

Reason for Problem: Complexity & Risks of Point Solutions

Our Industry Solution: Value Chain Optimization

Prepare

optimized plan

Prepare operational

schedule

Prepare

execution tasks

Execute &

Capture tasks

Conformance

to shift targets

Conformance

to schedule

Conformance

to plan

Event Based

Daily/Shiftly/Hourly

Weekly/Daily

System of Records

Frequency Resolution

Yearly/Monthly

Weekly/Daily

Daily/Shiftly

Day of

Execution

@

@

@

@

Approver

Scheduler

Supervisor

Operator

Planner

Mining Value Chain OptimisationPlan – Do – Check – Act plan to execute workflow

Value Chain OptimisationBusiness Workflow

Confidential Property of AVEVA and Schneider Electric |

Value Chain Optimization

Short Interval Control - Use Cases

Closed loop task management

Break schedule down into task list with assets

Accurate assignment of operators through integration of live crew rostering informationPush task to employee mobile device (tablet / mobile) with SOP, and start-up procedures. Commence job notifications

Closing the loop with actual progress tracking against task, therefore against complete schedule and tracking to optimised planning target

Create Execution Schedule (Plan)

Final schedule goes through approval process to stakeholders to gather feedback including current status of equipment's and operators availability.

Promptly respond to unplanned events

Upon Downtime notification, notify scheduler, re-sequence subsequent tasks and alert downstream of alternative stacking plans

Case Study: Demurrage Cost Optimisation

Challenge

● An Iron Ore producer required to match concentrate& pellet production at their magnetite operation to

Sales Orders in order to minimize demurrage costs,product quality variability, and delays associated

with Rail & Ship sequencing

Solution

● Unified Supply Chain Management (USCM)

powered by Spiral Suite, accurately modeled thephysical constraints of the system

● Optimize planning & scheduling across multiple

competing financial objectives

● Configurable platform for expansion beyond Rail &

Ship, into upstream (ore development)

Result

● Potential saving of $388K/day by optimizing demurrage costs

● Enterprise collaboration by eliminating departmental silos andpoint solutions

● Planning efficiency by eliminating redundant planning tasksusing a consistent platform across the entire value chain

Magnetite Operation

Case Study: Production Planning Optimization

Challenge

● A Coal Producer required a short term planning solution tooptimise mine supply to contractual tonnage and quality

targets.

Solution

● Unified Supply Chain Management (USCM) powered by

Spiral Suite, to accurately model the physical supply chain,the FIFO blending in silos, and the contractual & physical

constraints inline with financial drivers

● Manage material movements for storage of coal and itsselective loading onto trains considering current inventory

states, pit delivery, rail plans and planned maintenance

● Optimise the daily operational planning process over short

term intervals

● Configurable platform to enable scenario analysis and extensible for longer time horizon planning

Result

● Potential saving of $215K per fortnight by optimisingblending sequence, quality and contractual targets

● Minimize penalties that could result from under deliveryof contractual targets

Coal Operation

Roy Hill

© 2018 AVEVA Group plc and its subsidiaries. All rights reserved.Pag

e 15

• Industry: Metals, Minerals and Mining

• Products: Demand Chain Planning and Scheduling (DCPS), Inventory Tracking and Quality Management

(ITQM), Delay Accounting (DA), Capacity Simulation Model (Pre-CAPEX Analysis)

• “We have a mine up in the Pilbara which is one of the largest mines in iron ore. We also have a

processing plant and from there we have a 344-kilometer railway that takes the product through

to our port operation where we load it onto ships at Port Hedland. So our mining operation is one

of the largest in iron ore. We have an ore reserve of approximately 2.3 billion tons of ore. We will

mine that at approximately one million tons a day and feed approximately 73 million tons per

annum into our crushing facilities, which then gets turned into 55 million tons per annum of iron

ore product.”

• Mike Lomman, General Manager, Demand Chain Planning

LEAR N MOR E

• Goals

• Build a green field iron ore mine, mine process plant, a heavy haul railway system from mine-to-port, new port facilities, and a Remote Operations Center

• Meet Roy Hill’s capacity of 55 million tonnes per annum(Mtpa) of iron ore

• Realize resource-to-market potential

• Challenges

• Optimizing end-to-end demand chain visibility from the pit tothe port across different time zones, from long term planning downto weekly scheduling

• Results

• Improved efficiency by streamlining mining processes

• Increased collaboration among different functions

• Optimized resource-to-market opportunities with real-time execution

• Created a high performance team connected by a digitized process

• Provided key financial insights into production slowdowns and outages

• Established state-of-the-art Remote Operations Center (ROC) coordinating everything from mine to process plant to rail and port… from 1,300 km away from mine site

Roy Hill – Conceptual layout

© 2018 AVEVA Group plc and its subsidiaries. All rights reserved.Pag

e 16

Processing MinePort & Rail

Execution (day of)

Scheduling (1 week)

Planning (3 months)

Value Chain

Time

Production Optimization - Foundation for Value Chain Optimization

• Breaking down pervasive operational silos leveraging digital technologies

• Optimizing the supply chain, driving efficiency through the entire process, reducing redundant operations and maximizing utilization of operating assets

• Enhancing decision support and business agility with real time visibility

• Continuously improve conformance to plan and conformance to schedule leveraging analytics

• Increasing operational efficiency and plant productivity by empowering the mobile work force with access to information and collaboration tools anywhere and anytime

Mine Operations Processing Logistics Port Shipping

Horizontal

OperationsManagement

Ve

rtic

al

Process

Sensors &Actuators

ControlSystem

Supply ChainManagement

EnterprisePlanning

Production Optimization– Stabilise and Optimise your operations

• Weibull Analysis to define Maximum Sustainable Rates (MSR)

• Stabilize - AMPLA Operations Management

• Downtime/ Delay Accounting,

• Production, Metrics and Dashboards

• Energy Management

• Optimize - Advanced Process Control

• Grinding, Crushing, Flotation, Smelting

Built for Purpose- Mining Operations Management

Material Tracking

Asset Utilization

Energy Management

Material Tracking

Asset Utilization

Energy Management

Scheduled Time

Calendar Time – Demand Loss Time

Start/Stop of Plant

Performance Time

Available Time – Performance Loss Time

Slow Running at Grind/Mill

Quality Time

Performance Loss Time – Quality Loss Time

Recovery loss at Tails

Available Time

Scheduled Time – Availability Loss Time

Start/Stop at of Feed

Losses Measured in“Tonnes or

Metal Tonnes”

Production Losses are translated to

“Hours Lost”

MMG Case: How OEE was implemented

“The asset utilization project is already delivering

significant results. We have achieved around 10-20%

capacity improvement globally. Sepon and Kinsevere

continue to operate 12% and 34% above nameplate

capacity respectively, contributing a further 29,422

tonnes of copper production in 2015 compared to the

year ended 2014.’’

Dan Curry, Group Manager Processing Operations

The Company

MMG operates and develops copper, zinc and other

base metals projects across Australia, the

Democratic Republic of the Congo (DRC), Laos and

Peru. It also has significant exploration projects and partnerships across Australia, Africa and the

Americas.

Case Study Online

MMG OEE Case Study

Increase Production by 10% by Improving Overall Equipment Effectiveness (OEE)

Case Study: MMG

http://software.schneider-electric.com/about-us/success-stories/mmg-limited/

© 2018 AVEVA Solutions Limited and its subsidiaries. All rights reserved.

Alumina Refinery• Ship (Bauxite) unloading

• Increased by 1 ship a year

• 0.45% production improvement

• $6.6M increased revenues

Zinc & Lead Filter Plant• 5 filter presses (4 Zn, 1 Pb/Zn)

• Increased utilization 78% to 94%


• 100Ktpa increased production

Manganese Mine• Primary crusher to final product

• Targeted production rate loss

• 20% production improvement

• 600Ktpa increased production

Cement Plant• 2 Cement Kilns

• 50% reduction in stoppages


• $1.6M increased revenues

Coal Operations• 8 wash plants and 1 port

• Targeted production rate loss


• $200M increased revenues

Olympic Dam Mine• De-bottlenecking underground rail

• Increased availability by 3 hrs/day


• 1.7Mtpa increased production

Disclaimer:• Names of some operations were withheld as the information was supplied to Schneider Electric only and not available in the p ublic domain

• Numbers provided for unnamed case studies were rounded (approximated) based on “best guess” commodity prices and annual produ ction levels

Glencore Hail Creek Operations• Train Loadout (TLO)

• 2 Coal Handling Preparation Plants (CHPP)

• 44% Reduction in duration of delays within CHPP• 48% Decrease in delay occurrences in CHPP

• 25 % Increase achieving Train Freight Incentive Scheme

Mining/Crushing:• BHP Iron Ore (Pit)• BHP OD (U/G)

• Illawarra Coal (U/G)• Kestrel Coal (U/G)

• Glencore Clermont (IPCC)• BMA Crinum (U/G)

Concentrators:• BHP Olympic Dam• BHP Cannington

• BHP Nickel West (All)• MMG (5 sites)

• Rio Tinto ERA• Kennecott Copper

Refine/Logistics:• BHP OD Refinery• BHP Nickel West KNR

• BHP Iron Ore Rail• Glencore NCA Pit-to-Port

• Glencore Hail Creek Rail • RT Alcan Gove Ship

Users:

BENEFITS REALIZATION IN MINING & METALS

From supply chain to demand chain

Control Room

Island control systems

Operating in Silos

Central Control Room

Remote or On site

Standardization across operation

HMI, Process, Systems

Manage by exception

Centralisation of information

Validation, reconciliation, consolidation

Integrated Planning and operations optimization

Operations Command Centre

Integration of planning and scheduling

Complete Elimination of paper work

Closed loop Mining Execution system and Scheduling systems

Automated Stock yards

Collision Avoidance systems

(Onsite or Remote in case of multiple sites)

Business Intelligence

Comprehensive Pit-to-Port operations

Integrated Operations Centre

Collaborative environment

Feeding back Market demand into operations –

Demand Chain Management

Integration of the value chain

Forecasting, what if scenarios

Benchmarking

Autonomous systems

Moving towards business intelligence operations

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ABOUT AVEVA

AVEVA is a global leader in engineering and industrial software driving digital transformation across the entire asset and operational l ife cycle of capital -intensive industries.

The company’s engineering, planning and operations, asset performance, and monitoring and control solutions deliver proven results to over 16,000 customers across the globe. Its customers are supported by the largest industrial software ecosystem, including 4,200 partners and 5,700 certified developers. AVEVA is headquartered in Cambridge, UK, with over 4,400 employees at 80 locations in over 40 countries.

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© 2019 aveva group plc and its subsidiaries. all rights ... na 2019 day 1...

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