Chris Adsett, Chief Executive Officer, Techenomics Mongolia LLC

1. Techenomics Mongolia LLC
Business Council Mongolia 26.1.2013
Presentation by :
Chris Adsett - CEO

2. • Techenomics International, trading as Techenomics
Mongolia LLC in Mongolia, specialise in providing Oil
Analysis Services, Non Destructive Testing (NDT),
Magnetic Plug Inspections, Filtration and Contamination
Control Management Systems, and ONSPEC Specialty
Lubricants to the mining, earthmoving, construction,
offshore production, shipbuilding, and transport industries
in Australia , South East Asia, Mongolia and East Africa.
Techenomics is an ISO9001 Quality Endorsed Company.
Who we are

3. • The company has been in operation for over 25 years. With
operations located in the Hunter Valley, Bowen Basin and
Perth in Australia , Batam and Kalimantan in Indonesia,
Mongolia, PNG, Thailand, Istanbul and Madagascar,
Who we are

4. • My talk today is about the Importance of oil analysis to
Industry of which mining is the biggest industrial sector in
Mongolia. Power generation and rail transport are also
industries that benefit from condition monitoring/oil
analysis.
• Oil analysis is importance as along with associated tools it
will save money, improve operating performance, lower
unscheduled downtime and decrease hydrocarbon usage.
Importance of Oil Analyis

5. 29 January 2013
Loss of Usefulness
Surface Degradation(70%)Obsolescence (15%) Accidents (15%)
Corrosion (20%) Mechanical Wear (50%)
Abrasion AdhesionFatigue
Life expectancy factors

6. Preventing Failure

7. 29 January 2013
Effects of dirt on hydraulic systems
and lubrication
• 50% OF COMPONENTS NEED REPLACING THROUGH WEAR. -
Rabinowitz Massachuesetts Inst. of Tech., 1981
• 55% OF PROBLEMS DUE TO DIRT. - DTI Survey of Hydraulic
equipment, 1983
• A BEARING WITH 100µm FILTERED OIL HAS 1/100th LIFE
OF 3um FILTERED OIL. - Jackobson, SKF, 1987
• 70% OF FAILURES TO BEARINGS IN INDUSTRY ARE
CAUSED BY INGRESSION OF DIRT - Forschungs
Vereiningung Antriebstechnik

8. 29 January 2013
•Built in Contamination
• Cylinders, fluids, hoses, hydraulic motors, lines and pipes, pumps,
reservoirs, valves, etc..
•Generated Contaminants
• Assembly of system
• Operation of system
• Break-in of system
• Fluid Breakdown
•External Ingression
• Reservoir Breathing
• Cylinder rod seals
• Bearing seals
•Maintenance Introduced Contaminants
• Disassembly / assembly
• Equipment Servicing / Top up oil
Sources of contamination

9. 14/11
16/13
15/12
17/14
18/15
20/17
19/16
21/18
100% 300% 500% 700%


13/10
Hydraulics and Diesel
Engines
Journal Bearings
and Turbo Machinery
Rolling Element
Bearings
Gearbox and Other
200% 400% 600%
ISO Code
Life Extension Through Contamination
Control

10. Contamination Control
How Much “Dirt” is present in ISO 18/16/13 Oil?
How Much of a Difference Will Cleaning Your Oil from
ISO 23/21/17 to ISO 18/16/13 Really Make?
Example: 60 LPM Pump Working 20 Hours / day for 300 Days
532.1 Kg/yr
66.4 Kg/yr
16.6 Kg/yr
Amount of “Contaminants” Flowing
Through Pump in One Year
ISO 18/16/13: 0.77mg/L x 60 = 46.2 mg/min x 60 min x 20hrs x 300 = 16,632,000 mg/year = 16.63Kg
ISO Code of Fluid
ISO 23/21/18
ISO 21/18/15
ISO 18/16/13

11. 0
10
20
30
40
50
60
70
80
90
100
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Hydraulic Fluid Consumption Hydraulic Breakdown Frequency
Australian company claimed an almost unbelievable 97%
reduction in hydraulic components failures in 5 years after
implementing a contamination control program
Facts

12. 0
10
20
30
40
50
60
70
80
90
100
0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8
Action Plan:
 Cleanliness Targets
 Sampling Ports
 Improved Filters and Breathers
 On-site Particle Counts
Achievements:
 75% reduction in oil
consumption
 80% reduction in
hydraulic repairs
Same company on another site
• 50% reduction in bearing purchases
• 80% reduction in hydraulic pump replacement;
• 83% reduction in oil consumption;
• 90% reduction in pump overhauls; and
• 90% reduction in frequency of lubrication failures.
Facts

13. Proven Results
13
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
0
2
4
6
8
10
12
14
16
18
Q1-1999
Q2-1999
Q3-1999
Q4-1999
Q1-2000
Q2-2000
Q3-2000
Q4-2000
Q1-2001
Q2-2001
Q3-2001
Q4-2001
Q1-2002
Q2-2002
Q3-2002
Q4-2002
Q1-2003
Q2-2003
Q3-2003
Q4-2003
Nickel Mine - Western Australia
Failures Value
Fluid Management Program Implemented
Fluid Management Program Ceased

14. Techenomics Abilities
FLAC SERVICES
•The complete industrial site management “system” that ensures
the elimination of contamination of Fuel, Lubricants, Air and
Coolants.
•The system can be applied to a complete mine site or modest
workshop to reduce the wear caused by contaminants introduced
through poor maintenance practices.
•It’s not uncommon to improve component life by 3-4 times and
reduce lubricant consumption by as much as 50% when the FLAC
system is implemented.

15. Wear metal (Lead) and Oil Viscosity Trending
Oil Analysis Case Study

16. Oil Analysis Case Study
Condition Monitoring with Oil analysis
Imagine being able to see exactly what’s happening inside an Engine, Gearbox,
Hydraulic system, etc. Oil analysis is a preventive maintenance tool that provides
of fluid condition and the internal condition of a component or system without
disassembly. What would be happen if we do not care about the health of our
machines.
We will look / find the components of the machine as shown below :

17. Techenomics in Mongolia
• Full condition Monitoring services,
including oil grease, coolant,
transformer oils and fuel analysis.
• Hydraulic oil testing including
foam.
• Operate extensively at regional
level.

18. Going forward
• Develop regional laboratories in
regions such as Tsogt Tsetsii.
• Filtration units to refurbish oil.
• Vibration Analysis.
• TFMS to assist Mongolian
companies reach international
standards of oil cleanliness.

19. Global Economy
We remain confident in the long term outlook for
the global economy
1. Encouraging signs have emerged in
the
external environment
• A range of Chinese leading
indicators suggest economic growth
has stabilised at an elevated rate
• In the United States, consumer
confidence and retail sales have
improved with initial signs of a
recovery in the housing market
2. Our positive long term view remains
unchanged
• Chinese GDP is forecast to almost
triple by CY25
• Urbanisation and industrialisation will
remain the primary drivers of
economic growth

20. Closing
Thank you for your time
Please feel free to take one of our cards or you may
contact us at
info@techenomics.com
20