These anonymous insights apply machine learning to help manufacturers design more and more advanced technologies. Reduce Distractions. ), the Apache AS1250XP is the largest sprayer in the AS family. To do this requires a determined focus on eliminating all forms of waste, reducing variability, and improving productivity of assets through advanced reliability and maintenance approaches, together with increased flexibility about changing conditions. With a few notable exceptions, it’s also unclear who is mandated to drive innovation in many mining companies. Miners benefit from working with partners that offer extensive aftermarket capabilities, yet the best starting point for mine operators to maximize machine availability is to have reliable engines. 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. A smaller bubble indicates lower capital spend. Not only does this have significant environmental sustainability benefits, it also lowers operating costs – which is a big win for our customers," he added. The MPI data suggest that over the 2009–13 period, the industry has more or less stabilized the downward trend in productivity, with MPI running on average at only –0.4 percent a year. The operating systems should also free up people and resources to prioritize productivity and operational excellence, and support effective performance management. More trucks would mean increased carbon footprint while doing the work slower means low productivity. With a boom of up to 132 feet, a 1200 gallon product tank, a crop clearance of 50 inches and weighing 22,500 pounds (lb. Cummins has 16 master rebuild centers around the world capable to rebuild high horsepower engines. 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. 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. 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. Another important factor concerns more extensive regulatory requirements across the industry worldwide; these can directly or indirectly affect productivity but, again, lie largely outside management’s control. 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 or calling 1-800-Cummins. This makes the daily, informal collabora… An examination of individual-mine data using MPI can deliver useful insights to mine management about their progress on the path toward higher productivity. It’s no secret that trucking markets around the world are calling for cleaner fuel alternatives. 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. Focus on innovation. The basis for MPI is the well-established Cobb-Douglas production-function equation used to measure productivity in national economies, which we have modified in such a way that it can measure the productivity of mining operations. 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. How much money would you have saved if you knew what component to change and when to change it? This means that the companies able to succeed in the race to achieve higher productivity will be among the biggest winners. Compared with industries such as automotive, which obsessively focus on productivity gains, the numbers seem astonishing. Join the conversation with #Cummins on your social platforms or learn more about our current and future product solutions. The evolution of the mine’s asset value since 2008 is represented by the size of the bubble. Some of these, such as the extended maintenance intervals and engines capable to do more with less, will help miners both on sustainability and productivity fronts, a double gain for the industry,” said Steve Cummins, Director of Mining Business at Cummins. © Copyright 2019 McKinsey & Company | P.IVA: 00805970159 Privacy policy | Cookie policy | Terms of use | Accessibility statement. “Availability is and will continue to be a key driver for the mining industry to deliver superior financial performance. To address the challenge of productivity improvement, miners will need to make moves on two levels: first to achieve short-term gains, and second to set their operations on the right course for higher long-run productivity performance. They adopt preventive maintenance procedures to increase equipment availability and extend machine life. Sustainable innovation. 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. Moving to the second level of actions, we see three important areas of focus to address the root causes of productivity decline. It could cost the mine operator over thousand dollars per hour for a mining dump truck or a mining excavator not to be working. 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”. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Feature stories and news releases about Cummins people, technology and culture. Strengthen mine planning. Digital innovation could provide a breakthrough. As a full flow-sheet provider to the global mining industry, we have the knowledge and experience to enable your mining … In this article, we describe our index, discuss trends in mining productivity that it reveals, and offer recommendations on how the industry can improve performance. Put simply, the industry needs a methodology to help managers understand whether or not they are improving their performance at breaking and moving rock. Aytek joined the Company in 2008. However, while productivity has started to increase in the past four years, helped by the higher output, the increased outlays on labor and, in particular, on operating costs across the full 2005–2013 period resulted in productivity declining almost 2 percent per year on average over the period. crushing and grinding circuits. If you’re like most modern mining operations, you’re facing relentless pressure to increase efficiency and reduce costs. How smart is the worksite of the future ? Intelligent Insights for Mining Operations Nevertheless, we think the long-term supply-demand fundamentals of many important mining commodities suggest that companies that can cost-effectively raise their output will be rewarded. Once connectivity is prioritized as a requirement of the worksite, a new way of working becomes possible. Learn more about Cummins natural gas solutions. In addition to the size and power needed to tackle any type of field condition, the AS family of sprayers are an Equipment Watch™ four-time award winner for highest retained value across all product categories. Many mining companies still consider operational productivity improvement to be the domain of a “continuous improvement” department or a handful of Lean experts or Six Sigma black belts, but do not yet regard it as a core competence. Intelligent Production. 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. This sprayer can tackle an array of conditions in almost any field. It is also possible to apply the same MPI analysis to identify trends in productivity across a whole country’s mining sector. Safety is paramount to mining operations, and good safety methods can lead to improved production. Fleets who contract the purchases and use RNG from authorized brokers receive full Greenhouse Gas reduction credits when pulling natural gas off the pipeline. This paper presents a recent application of PIO methodology and emphasises the potential for increased productivity without capital spending. Miners are familiar with extreme conditions whether it is the elevation, temperature or accessibility, and understand how these conditions impact the performance of their equipment. Use enhanced sequencing to optimise mine sites. It will also necessitate looking beyond the boundaries of the mining industry to seek inspiration from other industries’ successes. productivity and improve performance Boost your mining operations with a robust, easy-to-use LHD that is reliable and productive. The worksite of the future will see site managers using digital technologies as integrated components to drive business results, with the Internet-of-Things and machine learning becoming more than just buzz words. And, in many cases, new capital projects are executed without integrating new technologies into the mine design. One of the most important machines in the modern row-crop production cycle is the sprayer. In this post we’ll explore how connectivity combined with intelligent site planning and the right equipment can improve productivity, while reducing costs and improving safety. Data management will be one of the key skills, without it the amount of information could prove overwhelming. Or, automatically trigger replacement part orders online so preventative maintenance could occur with minimal steps or time lag. Mining companies cannot control these two areas, so changes in TFP performance do not fully reflect operational performance and productivity. Probably the most important are the variable nature of ore grades and the depth of the ore body. learn more about our current and future product solutions,, two years of driving for an average U.S. driver. One-way Cummins addresses this challenge, beyond having 1,000+ trained technicians, is to offer on-site aftermarket support for customers that aim to boost equipment availability. Increase the profitability of your operations and monitor quarry performance, productivity and stockpile inventory with Trimble LOADRITE mobile conveyor belt scales. To make this happen will require a broadening of the expectations of what operations leaders are responsible for, and tighter integration with other corporate functions. In the population of mines that we have included in MPI, output has grown at a CAGR of 14.8 percent. Landfills are an extreme threat to the ozone and are responsible for emitting raw methane gases. Corporate media team contacts for interview requests and media assistance. Refocus on high quality production by increasing cut off grades. Whether it’s flying drones, remote diagnostics, virtual service events, autonomous operators or smart charging for electric equipment. Clearly, the industry has already started to work on this, with many companies already reining in capital expenditures and making moves to obtain more value-adding output from their asset base. It is perhaps understandable for an industry that has been asked to break production records year after year in the past decade to prefer to stay with what has always worked, rather than risk an interruption in output, but the industry’s rate of innovation and adoption of breakthrough technologies was generally slow even before the supercycle. Using work time to exercise may actually help improve productivity, according to a study published in the Journal of Occupational and Environmental Medicine. To learn more about mining power solutions Cummins offers, visit our webpage. Let’s define productivity as getting the job done faster, and increased productivity helps miners do more with less. Find out how our experienced management team can help your site reach its full potential. In the mining business, productivity is sometimes less space being consumed by an engine, leaving room for more payload or less time to accelerate, thus maximizing the number of trips a day. Larger engine manufacturers offer the re-build service through dedicated facilities. The surge in demand for metals and minerals in the early 2000s quickly translated into much higher prices and, with it, much increased miners’ profitability. Social media can be a huge productivity killer, but it isn’t practical to have a no … “ The operations teams can react to those insights in the right time frame and increase their productivity. In brief, that the industry has paid a high price in terms of lower productivity for volume gains during the demand boom—but that there are signs the industry may be starting to turn its productivity performance around. Improve budget and risk management. Miners are seeking to cut costs incurred to produce mining output, or to increase output at no additional cost—in other words, to raise productivity. Aytek lives in Minneapolis, Minnesota with his wife and two kids. Mining-company management should encourage openness to trying new approaches and to adopting new technologies. Ajay Lala, Mukani Moyo, Stefan Rehbach, Richard Sellschop. Cummins’ natural gas engine line already produces emissions 90% lower than EPA requirements; adding this fuel type further reduces Waste Management’s vehicles to net sub-zero emissions! With advanced hardware and sensors now being increasingly added to construction equipment- machines are in fact collecting data and learning the way sites work. Today, the industry finds itself in new territory, following the slowdown in demand growth over the past four years and consequent fall in prices and mining profits. The U.S. natural gas pipeline system totals over three million miles of pipeline across the country, providing natural gas to factories, hotels, city-owned facilities, convention sites, airports, commercial ship and motorized vehicle refueling sites, and finally into residential homes across the country.