Best Practices for Automation - FLSmidth - One source supplier of

Best Practices for Automation in the Mining, Minerals and Metallurgical Industries

© 2012 FLSmidth A/S 2

Contents

Introduction ……………………………………………… 3

Operational Challenges ………………………………… 4

Knowledge of Automation and Strategy ……………… 5

Current Automation Practices …………………………… 6

Benefits obtained ………………………………………… 7

Approach, Rationale and Criteria for Investment ……… 8

Strategy Adaptation ……………………………………… 10

Appreciation and Future Plans …………………………… 11

Conclusion ………………………………………………… 14


Introduction

In 2011, FLSmidth, in collaboration with ARC Advisory Group, conducted a confidential survey to develop a better under-standing of the best practices in process automation currently employed by the mining, minerals and metallurgical processing industry. One hundred and ten respondents from around the world contributed to the survey.

The survey examined the challenges encountered in mining operations, strategies for automation, technologies employed and the benefits they yield. It also researched how people inform themselves on automation and how they source auto-mation. Finally, the survey investigated the plans they have for implementing automation for the future and how they adapt their strategies.

The resulting report “Best Practices for Automation in the Mining, Minerals and Metallurgical Industries” based its findings on the answers of three defined groups of respondents:

StrategistsStrategists are well-informed, regard automation as a strategic issue, have already implemented a high degree of automation and stress functionality, in-house serviceability, local support and reliability, and have quantified benefits as main solution selection criteria.

ImplementersImplementers are fairly well-informed, use a mix of strategic and tactical processes in their approach to process automation, have installed an average degree of automation with medium to large gaps, and regard functionality and reliability as main solution selection criteria.

AdoptersAdopters have fair knowledge, varying between areas, have installed a lower degree of automation with large gaps, have aggressive plans for extensions and new installations, and regard functionality and reliability as main solution selection parameters.

The survey identified seven major areas of interest: Operational Challenges Knowledge of Automation and Strategy Current Automation Practices Benefits Obtained Appreciation and Future Plans Approach, Rationale and Criteria for Investment Strategy Adaptation


0% 20% 40% 60% 80% 100% 120% 140% 160%

Throughput

Yield, recovery rate

Energy cost

Water management

Health and safety regulatory compliance

Emissions reporting

Emissions control

Process safety

Productivity, manpower cost

Manpower availability

Manpower skills and know-how

Plant availability

Process variability, product quality

Correct metallurgical accounting

Production performance reporting

Automation availability and reliability

Strategists

Implementers

Adopters

Operational Challenges

OverviewOverall, the trend is that factors such as throughout and yield that affect production value are considered more important than cost factors such as energy and personnel costs.

FindingsThe top three challenges are throughput, automation availability and reliability, and yield or recovery rate. These three challenges are all related to total, sellable production quantities – i.e. production value.

Energy cost, process safety, and plant availability are next in line. Energy is a highly visible financial cost factor. Sustainability aspects such as emissions control and reporting are not seen as important challenges.

Next in the list is manpower availability that affects production quantity, supporting the focus on production value. Scarcity of skilled personnel is probably an issue, particularly in remote regions, at a time when production needs to be maximized in order to realize buoyant commodity prices.

Distribution between each group is fairly even for each challenge with the exception of correct metallurgical accounting and emissions reporting, where no Adopters are represented. The latter finding is interesting when one considers the considerable focus that environmental issues have in permitting mining operations.

Automation availability and reliability

Production performance reporting

Correct metallurgical accounting

Process variability, product quality

Plant availability

Manpower skills and know-how

Manpower availability

Productivity, manpower cost

Process safety

Emissions control

Emissions reporting

Health and safety regulatory compliance

Water management

Energy cost

Yield, recovery rate

Throughput

Strategists Implementers Adopters


0% 20% 40% 60% 80% 100%

Process automation and supervisory control

Collection, visualisation, reporting and analysis of data

Advanced process control

On-line analyzers and advanced instrumentation

Sampling, sample preparation and analysis

Operator training simulation

Material accounting, sorting and blending

Remote plant monitoring and operation

Remote vendor support

Strategists

0% 20% 40% 60% 80% 100%

Implementers

Knowledge of Automation and Strategy

OverviewFocus on strategy is highest in Strategists and lowest in Adopters with tactical, case-by-case application of automation strongest in Adopters. This leads to the supposition that the lower level of benefit generally obtained by Adopters may be due to lack of a global approach to automation with inadequate coordination.

FindingsStrategists take a far more strategic approach to automation with more than 40% considering it to be a strategic enterprise issue. Implementers focus more on general application. Adop-ters look to general application of automation with highly visible applications.

Respondents’ knowledge of the different technology domain categories varies both by domain and performance. Knowledge of process control systems, historization, visualization, advanced process control and remote plant monitoring ranks higher than that of automating quality operations, operator training simula-tion, material accounting and remote maintenance.

Generally, Strategists have more knowledge than Implementers, who in turn have more than Adopters. Strategists believe that more than 80 per cent in this category have expert or good knowledge, while the corresponding figure for Implementers and Adopters is around 60 per cent.

Strategists

Adopters

Implementers










0% 20% 40% 60% 80% 100%

Adopters

None

Some knowledge

Fair knowledge

Good knowledge

Expert










None Some knowledge Fair knowledge Good knowledge Expert


Current Automation Practices

OverviewStrategists automate more than Implementers with Adopters automating least. Across performance categories, advanced process control is the most installed domain followed by historization and visualization, on-line analysis and advanced instrumentation. Operator training simulation and material accounting are least installed.

FindingsStrategists make clear choices. At least 70 percent automate most domains well, with the exception of operator training simulation and material accounting domains where automation is as yet rare. Over 90 percent have well automated PLC-based process control, historization and visualization, and on-line analy-sis and advanced instrumentation, while at least 70 percent have well installed advanced process control, remote plant monitoring, operation, support, diagnostics and maintenance.

Implementers and Adopters do not agree to the same extent how far to automate a certain category.

The mining, minerals and metallurgical sector tends towards a low-cost sourcing strategy with few strategic suppliers, accepting slightly lower functionality or service, but with a lower cost of ownership. Many respondents have a scope limited to a site or a project. Those with an enterprise-wide approach feel that dependence on a single supplier would increase financial and technical risk.

0% 20% 40% 60% 80% 100%

PLC based process control

DCS-based process control

Historization and visualization


On-line analysis and advanced instrumentation

Remote plant operation and monitoring



Material accounting, sorting and blending systems

Strategists

0% 20% 40% 60% 80% 100%

Implementers

0% 20% 40% 60% 80% 100%

Adopters

Not installed

Little automated

Well automated

Fully automatec

Not installed Little automated Well automated Fully automated

Strategists

Adopters

Implementers




















Benefits obtained

OverviewRespondents’ benefits would seem to be more strongly correlated with the way they apply the technology rather than the degree of automation they have implemented. Benefits corresponding to the most important challenges are among the highest reported across performance categories – an encouraging sign that automation is delivering on the benefits expected.

FindingsThe areas where respondents hope to gain the biggest benefit from automation are throughput, yield/recovery rate, energy cost, plant availability and automation reliability and availability. These areas correspond closely with the main operational challenges.

Strategists rate the benefits obtained in almost all performance areas as either critical or very important. These ratings are less common among Implementers and in the minority in Adopters. These results are possibly the result of strategic focus in Strategists and an increasingly more case-by-case approach in Adopters.

The bottom line, however, seems to be that the more strategic the approach to automation, the greater are the benefits it delivers.

0% 20% 40% 60% 80% 100%

Throughput maximization

Yield maximization or improved recovery rates

Minimization of energy consumption

Water consumption and waste minimization

Auxiliary materials consumption

Robustness (capacity to recover from disturbances)

Variability

Trouble shooting

Increased availability, minimization of upsets and shutdowns

Compliance with HSE regulations, exposure of personnel

Meeting product quality specifications

Ensuring product consistency

Representative sampling, sampling preparation and analysis

Reducing the cost of quality compliance and assurance

Increasing speed from sampling to analysis result

Tighter metallurgical accounting

Process equipment maintenance cost

Automation and instrumentation equipment lifecycle cost

Improved lifecycle management of equipment and facilities

Production personnel productivity

Maintenance personnel productivity

Process control personnel productivity

QC/lab personnel productivity

Strategists

0% 20% 40% 60% 80% 100%

Implementers

0% 20% 40% 60% 80% 100%

Adopters

Unimportant

Somewhat important Important

Very important Critical

Don't know

QC/lab personnel productivity

Process control personnel productivity

Maintenance personnel productivity

Production personnel productivity

Improved lifecycle management of equipment and facilities

Automation and instrumentation equipment lifecycle cost

Process equipment maintenance cost

Tighter metallurgical accounting

Increasing speed from sampling to analysis result

Reducing the cost of quality compliance and assurance

Representative sampling, sampling preparation and analysis

Ensuring product consistency

Meeting product quality specifications

Compliance with HSE regulations, exposure of personnel

Increased availability, minimization of upsets and shutdowns

Trouble shooting

Variability

Robustness (capacity to recover from disturbances)

Auxiliary materials consumption

Water consumption and waste minimization

Minimization of energy consumption

Yield maximization or improved recovery rates

Throughput maximization

Unimportant Somewhat important Important Very important Critical Don’t know

Strategists Implementers Implementers


Approach, Rationale & Criteria for Investment

OverviewMore than 70 percent of Adopters and 80 percent of Strategists feel comfortable assessing the possible gains associated with investments in automation and their economic impact, but feel they need additional information.

Safety aspects influence decisions to invest in process automa-tion in a major way. Also respondents feel it is important or very important that employees use their energy managing the process rather than the equipment.

FindingsRespondents feel a need for information about available solutions types to be continuously updated. This includes knowledge about economic benefit assessments. Aligning workers and motivating them are top areas where respondents feel they lack information.

Reducing the presence of people in production areas is important or very important to 70 percent of Adopters and up to almost 90 percent in Strategists. Both aspects are linked to availability of personnel, which is a challenge for many. Health and personal safety are likely other factors motivating the reduction of presence in production locations.

0% 20% 40% 60% 80% 100% 120% 140% 160%

Knowledge about the available solution types

Knowledge of how to ensure a smooth transition from manual processes and rapid realization of

benefits

Knowledge of the service and maintenance requirements of an automation solution and how to

address them

Understanding of the general advantages of automation for your particular plant and equipment

Understanding of the relevance of particular solution types for your plant and equipment

Knowledge of how to align workers, motivate them for new solutions, and address resistance

Knowledge about economic benefit assessment

Strategists

Implementers

Adopters

Strategists Implementers Adopters

Knowledge about economic benefit assessment

Knowledge of how to align workers, motivate them for new solutions, and address resistance

Understanding of the relevance of particular solution types for your plant and equipment

Understanding of the general advantages of automation for your particular plant and equipment

Knowledge of the service and maintenance requirements of an automation solution and how to address them

Knowledge of how to ensure a smooth transition from manual processes and rapid realization of benefits

Knowledge about the available solution types


When deciding on automation products, Strategists attach clearly more importance to the following criteria, than Implementers and Adopters who focus more on product functionality and reliability:

Quantified benefits, audited after installation Total cost of ownership Equipment and solution life cycle management Serviceability by own staff Scalability (modular design) Reliability Remote support, diagnostics and maintenance Local support and spares Real-time management reporting Industry and process specific features Documented success at similar plants Customizable applications Upward compatibility and openness towards other systems

Quantified benefits, audited after installation

Total cost of ownership

Equipment and solution life cycle management

Serviceability by your own staff

Scalability (modular design)

Reliability

Remote support, diagnostics and maintenance

Local support, spares etc.

Real time management reporting

Industry and process specific product features

Documented success at similar plants

Customizable application

Compatibility (openness towards other systems)

Unimportant Somewhat important Important Very important Critical

0% 20% 40% 60% 80% 100%

Compatibility (openness towards other systems)

Customizable application

Documented success at similar plants

Industry and process specific product features

Real time management reporting

Local support, spares etc.

Remote support, diagnostics and maintenance

Reliability

Scalability (modular design)

Serviceability by your own staff

Equipment and solution life cycle management

Total cost of ownership

Quantified benefits, audited after installation

Strategists

0% 20% 40% 60% 80% 100%

Implementers

0% 20% 40% 60% 80% 100%

Adopters

Unimportant

Somewhat important

Important

Very important

Crtitical

Strategists AdoptersImplementers


Strategy Adaptation

OverviewMost respondents are loyal to their suppliers. Also they are becoming more aware of automation as a strategic factor, in particular in an enterprise context. There is a trend away from the case-by-case approach.

FindingsA majority of respondents would place their orders with the same process automation suppliers whom they have selected to optimize functionality, minimize risk or optimize design and implementation.

While there could be an advantage in reducing the number of suppliers, many are reluctant to do so because of the risk factor involved in changing.

There is a strong trend towards a perception of increased strategic importance. Automation with strategic importance for sites and even more for the full enterprise, will become more widespread than the current preference for ‘generally applying’ automation as well as ‘highly visible applications’. This is most obvious in Implementers who appreciate their gap in strategy, less for Strategists, who automate already in a strategic manner, and even less for Adopters.

0% 20% 40% 60% 80% 100%

Optimum for design and implementation efficiency

Optimum for risk

Optimum for the installed solution effectiveness

Less

Maintain

More

Less Maintain More

Optimum for the installed solution effectiveness

Optimum for risk

Optimum for design and implementation effeciency


0% 20% 40% 60% 80% 100%










Not installed

Little automated

Well automated

Fully automatec

Appreciation and Future Plans

OverviewThe general perception of useful degree of automation per technology domain is much the same among Strategists, Implementers and Adopters. This is particularly true for those who believe and domains should be fully automated. There are, however, a number of discrepancies between perception of importance and investment plans, most apparent in Adop-ters who, despite aggressive investment plans, seem to have less coordinated action plans.

FindingsNearly 60 per cent of Strategists are planning to invest in automation or remote vendor support, diagnostics, trouble-shooting, remote plant operation and monitoring within the next 12 months, while about 50 per cent are looking to auto-mate material accounting, sorting and blending systems within the same timeframe. There is already a high degree of installed DCS- and PLC-based process control among Strategists.

0% 20% 40% 60% 80% 100%

N/A

Little automated

Well automated

Fully automated

0% 20% 40% 60% 80% 100%

Within 1 year

In 1 to 3 years

In 4 years or later

Not aware of plans










Strategists

N/A

Little automated

Well automated

Fully automated

Not installed

Little automated

Well automated

Fully automated

Within 1 year

In 1 to 3 years

In 4 years or later

Not aware of plans

Current level Optimal level Future plans


Together with material accounting, operator training simulation is high on the list for more than 60% of Implementers within the next 12 months. About 50 per cent in this category are looking to automate remote plant operation and monitoring, and DCS-based process control. They possibly regret their decision to use a DCS where they could have employed a PLC system. Between 20 and 60 percent of Strategists have plans for exten-sion or additional installation in all technology domains within 12 months, and between 35 and 50 percent have plans in four years or later.

0% 20% 40% 60% 80% 100%










Not installed

Little automated

Well automated

Fully automatec

0% 20% 40% 60% 80% 100%

N/A

Little automated

Well automated

Fully automated

0% 20% 40% 60% 80% 100%

Within 1 year

In 1 to 3 years

In 4 years or later

Not aware of plans










Implementers

N/A

Little automated

Well automated

Fully automated

Not installed

Little automated

Well automated

Fully automated

Within 1 year

In 1 to 3 years

In 4 years or later

Not aware of plans



Over the coming year, about 70 per cent of Adopters are plan-ning to invest in automation of material accounting, sorting and blending systems, operator training simulation, remote vendor support, diagnosis and troubleshooting. Slightly fewer have plans for remote plant operation and monitoring. Around 40 per cent of Adopters also have plans to automate in other process control areas as well as historization and visualization.

0% 20% 40% 60% 80% 100%










Not installed

Little automated

Well automated

Fully automatec

0% 20% 40% 60% 80% 100%

N/A

Little automated

Well automated

Fully automated

0% 20% 40% 60% 80% 100%

Within 1 year

In 1 to 3 years

In 4 years or later

Not aware of plans










Adopters

N/A

Little automated

Well automated

Fully automated

Not installed

Little automated

Well automated

Fully automated

Within 1 year

In 1 to 3 years

In 4 years or later

Not aware of plans



Conclusion

Process and plant automation is an important strategic issue for companies in the Strategist segment. These companies tend to implement automation in more domains than Implementers and Adopters, often with an enterprise perspective, rating benefits obtained as either critical or very important. Less strategic thinkers tend to have a case-by-case approach to automation focusing on highly visible applications.

Generally speaking, the degree of knowledge and experience with automation as well as focus on business benefits rather than functional ones is proportional to perception of its strategic importance. However, there is a strong trend towards a deeper understanding of the strategic importance of automation by an increasing number of people.

Throughput, yield/recovery rates, energy cost reduction, plant availability and automation reliability and availability are the main benefits expected by the majority of respondents. Another major aim is a reduction in the presence of people in production areas. Reasons quoted are wage costs, lack of available skills and to a certain extent health and safety.

Most of those taking part in the survey felt confident about assessing the potential gains associated with their investment in automation. Despite this, however, respondents still felt a need for updated information about available solutions.

While there is a trend in the industry towards reducing the number of suppliers, most respondents remained true to their present suppliers in order to avoid risks associated with change.

The future plans of Strategists involve automation of vendor support, diagnostics, troubleshooting and remote plant operation and monitoring. Material accounting and operator training simulation are high on the list for Implementers. Those who have not implemented automation to the same degree are looking at many different areas, mainly functional ones such as material accounting, sorting and blending sys-tems, but also demonstrate increasing interest in vendor support, diagnostics and troubleshooting.

An unmistakeable conclusion, however, is that the importance of automation in relation to business performance and profitability is set to increase very quickly over the coming years.

Our brochure makes no offers, representations or warranties (express or implied), and information and data contained in this brochure are for general reference only and may change any time. Please contact us for specific information or data that may relate to your interest.

www.flsmidth.com/automationE-mail: [email protected]

Comminution Technology Center

FLSmidth Inc.2040 Avenue CBethlehem, PA 18017-2188USATel: +1 610-264-6010Fax: +1 610-264-6170

Minerals Processing Technology Center

FLSmidth Salt Lake City, Inc.2850 S. Decker Lake Dr.Salt Lake City, UT 84119USATel: +1 801 526 2000

Material Handling Technology Center

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