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Condition Based Asset Management Program,[object Object],MINExpo 2008,[object Object]
Background,[object Object],2,[object Object]
Newmont One Nevada Goals (2006),[object Object],Overall Goal - reduce One Nevada Costs applicable to sales to $300/ounce by Jan 2008 ,[object Object],Offset higher prices in labor, diesel, cyanide, u/g contract services costs,[object Object],YTD 2006 $425 YTD 2005 $327,[object Object],Maintenance is a piece of this pie,[object Object],This project represents approx $2.00 / ounce,[object Object],Make this a team effort gaining best from: ,[object Object],Newmont (One Nevada, BatuHijau, Peru experience),[object Object],Dingo,[object Object],Cashman / Caterpillar,[object Object],ConocoPhillips,[object Object],Other Newmont OEMS,[object Object],Desired relationship:,[object Object],Sustainable change, owned by Newmont,[object Object],Accountability for results on both sides,[object Object],Win-win,[object Object],Long term,[object Object],3,[object Object]
4,[object Object],Previous Experience,[object Object],Hours,[object Object]
Program Scope,[object Object],5,[object Object]
Scope - Process,[object Object],6,[object Object],6-12 Months,[object Object],Ongoing,[object Object],1 Month,[object Object]
Scope – Newmont Operations,[object Object],Surface,[object Object],Twin Creeks,[object Object],Gold Quarry,[object Object],Phoenix,[object Object],Underground,[object Object],Leevilee,[object Object],Deep Post,[object Object],Process,[object Object],Twin Creeks Mill,[object Object],Phoenix Mill,[object Object],SAL,[object Object],Mill 5,[object Object],Mill 6,[object Object],7,[object Object]
Scope - Programs,[object Object],Breakdown Avoidance,[object Object],Condition Intelligence,[object Object],KPI Measurement,[object Object],Weekly Meeting,[object Object],Troubleshooting Guides,[object Object],Sample Point ID’s,[object Object],Component Life Extension,[object Object],Monthly evaluation of all components: ,[object Object],approaching expected life ,[object Object],being “extended” past expected life and in critical condition.,[object Object],Incorporates condition monitoring data, performance tests and financial data.,[object Object],Monthly on-site component evaluation review with equipment group “owners”.,[object Object],8,[object Object]
Results so far…,[object Object],9,[object Object]
Program Results,[object Object],Total Benefits to June 2008,[object Object],$15,111,271,[object Object],Total project Payback in July 2007,[object Object],Total project cost $3.5MM,[object Object],Cash flow breakeven in 3 months,[object Object],10,[object Object]
Program Return on Investment,[object Object],$7.00,[object Object],$6.00,[object Object],$5.00,[object Object],$4.00,[object Object],Return on each $ invested,[object Object],Actual,[object Object],$3.00,[object Object],$2.00,[object Object],Forecast,[object Object],Proposed,[object Object],Proposed,[object Object],$1.00,[object Object],Average,[object Object],11,[object Object]
General Foreman comments,[object Object],12,[object Object],“This will allow our guys to see what is really going on with their components.  They get expert condition reports back that will give them specific instructions of what is wrong and how to fix it; vs. the Fax we get now.”  ,[object Object],Bilbo Bessert  (Process Plants),[object Object],“The program forces communication between the planners and the shop floor – they track down shop floor technicians to get feedback on actions taken as a result of the CI recommendations and work order generated.,[object Object],Things are going well with the CBAM program; we have made great improvement from the start.”,[object Object],Ken Andress  (Newmont East),[object Object]
Observations,[object Object],13,[object Object]
How is CBAM different?,[object Object],14,[object Object],CBAM,[object Object],Focus,[object Object],Condition Monitoring Focus,[object Object],[object Object]
Results Focus
Find Problems
Technology FocusCBAM iscomplete system which delivers results, not technology.  Condition Intelligence (find) + Action Tracking (act) produce results, measured monthly accounting of value of our service,[object Object]
Key Learning,[object Object],CBAM is an ongoing series of Daily, Weekly, Monthly, Quarterly and Annual activities,[object Object],In today’s dynamic environment, Mining companies struggle to maintain the disciplined routine required to ensure benefits are derived,[object Object],Three long term customers have decided that Dingo provides a cost effective way to ensure the benefits of CBAM, despite strong initial desire to bring totally in-house,[object Object],Newmont experience has been similar.,[object Object],Site based planners have a different career path and experience to Dingo project managers,[object Object],Dingo has shifted offering from Project to System in response to these trends,[object Object],15,[object Object]
The Future,[object Object],16,[object Object]

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Newmont Mine Expo Presentation

Editor's Notes

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  4. BP's Texas City Refinery is the second-largest oil refinery in the state and the third-largest in the United States. A major explosion occurred at the site on March 23, 2005, killing 15 workers and injuring more than 170 others. It has been noted as one of the most serious industrial incidents in the past two decades.The operators started the tower while ignoring open maintenance orders on the tower’s instrumentation system. The design of the level indicator meant that it only read a length of 3 metres; anything above that didn't register. In addition, the design was such that any level above 3 metres could show on the screen as a drop in level. There was a secondary alarm which should have gone off if liquid exceeded 2.5m, however no-one heard it; the alarm was reported as damaged before the accident and there were no records of it being fixed
  5. Discuss benefits of a single databaseAll data in one place for all OEM’sWeb accessible