customer reference: iot to boost logistics
TRANSCRIPT
© 2015 Cisco and/or its affiliates. All rights reserved.
BHP Billiton Leveraging IoT to Boost Predictive Maintenance for Better Outcomes
Graham Reynolds
Head of Technology, WAIO, BHP Billiton
27 May 2016
© 2015 Cisco and/or its affiliates. All rights reserved.
BHP Billiton Operating Model
Operated Non-operated Non-Core
Petr
ole
um
Smaller assetsOnshore US Shenzi Pyrenees MacedonAngostura Mad DogAtlantis Bass Strait North West Shelf
Min
era
ls
Am
eri
cas
Samarco (Dean Dalla Valle portfolio)Jansen (Dean Dalla Valle portfolio)Escondida Pampa Norte Antamina Cerrejón New Mexico Coal
Min
era
ls
Au
str
alia
Nickel WestWestern Australia IO
Olympic Dam
Qld CoalBMA, BMC
NSW Energy Coal
© 2015 Cisco and/or its affiliates. All rights reserved.
Outlook of Compressed MarginsDecline in long-term commodity prices and low rate of innovation compresses margins over the long-run
Long-term metal prices decline at 1.2%pa
Mining industry productivity has
• Not kept pace with price declines; and
• Lagged manufacturing and computing.
Disruption is required to change the mining paradigm and sustain productivity growth
• We need thinking from outside the existing mining framework in order to achieve fundamental change
0
70
140
210
280
350
1940 1950 1960 1970 1980 1990 2000 2010 2020L
ab
ou
rP
rod
ucti
vit
y (
19
95
=1
00
)
YearMining Manufacturing Information Technology
2.5
3
3.5
4
4.5
5
1800 1850 1900 1950 2000
Meta
l P
rices*
Year
Decline in Metal Prices
0.7%
2.8% 4.4%
* Natural log of metal prices
BCA Research 2012
IMF 2015, http://www.imf.org/external/np/res/commod/index.aspx
Bartos P.J., Resource Policy, 32, 2007, pp 149-158
US Department of Labor 2015, http://www.bls.gov/lpc/
© 2015 Cisco and/or its affiliates. All rights reserved.
Technology Enabled Productivity
The mining industry’s Productivity Opportunity
0
70
140
210
280
350
1940 1950 1960 1970 1980 1990 2000 2010 2020
Lab
ou
rP
rod
ucti
vit
y (
1995=
100)
YearMining Manufacturing Information Technology
?
Bartos P.J., Resource Policy, 32, 2007, pp 149-158
US Department of Labor 2015, http://www.bls.gov/lpc/
© 2015 Cisco and/or its affiliates. All rights reserved.
So how do we do it?
Case study for discussion
© 2015 Cisco and/or its affiliates. All rights reserved.
Poll Question• How Closely Do You Work with IT or OT?
A. Closely, Strategic
B. Ad Hoc
C. Never
Thank you.