Georg Gradl

VP Global Head for Mining amp Metals SAP SE

14 November 2017

Industrie 40 ndash Digitalisierung im Bergbau

2INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Mining

Industry characteristics amp trends

Capital access amp Joint Ventures

ProductivityCash Optimization amp Switch to Growth

Social License to Operateamp Transparency

Capital raising

continues to be an

issue

Rather refinancing

than going into new

projects

Divestment of non-

core assets

Offering minority

positions to joint

venture partners

Productivity remains the

primary operational

challenge

Move away from ldquovolume

at any costrdquo

Digitalization of the value

chain to manage the full

value stream using real-

time production reporting

systems

Limited pricing amp

demand visibility

Ongoing market

volatility

Make sustainable

cost reduction that

do not erode value

Increase focus on

working capital

Improve capital

effectiveness

Social responsibility

Financial amp tax

regulations increase

Global trade

increases

Environmental

regulations increase

Labor regulations

Resource nationalism

Increase of

indigenous rights

Lower commodity prices and economic uncertainty and volatility are driving the need for innovation

Innovation ampCybersecurity

Faster time to value

required

Mobile simple access

to information

ITOT convergence

Hybrid landscapes

Automation amp robotics

GPS3D mine mapping

Handling Big Data

Theft and increasing

security risks

3INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Internet of Things and Industry 40

Internet of Things

Internal INDUSTRIAL scenario External scenario

SCADA HMI

Machine Layer

MES

ERP (PLM PP) raquo All industries

raquo All things and devices

raquo Ubiquitous

raquo Personalized

SMART Industrial

THINGS amp DEVICES

Industrie 40raquo Manufacturing

industries

raquo OT-IT convergence

raquo Systems things and devices on the shop floor

4INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Why IoT is important hellip

Sources

(1) IDC White Paper sponsored by SAP The Future Services Sector Connected Services for Continuous Delivery 2017

(2) McKinsey The Internet of Things Mapping the Value beyond the Hype 2015 (page 69)

Asset optimization10ndash60 lower service

and maintenance costs1

New business models15ndash25 faster revenue

growth than the industry

average1

Operations excellence 10ndash30 higher productivity1

Inventory optimization20ndash50 lower inventory

costs2

5INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

VALUE CREATION THROUGH

Operational innovation

bull Predictive maintenance

bull Automation for connected

mining

bull Precision-mining technology

IoT driving value for Mining

New business

scenarios

Development Extraction Transportation Sales and service Processing

Procurement Finance Human resources

Precise mining

Predictive

maintenance

Augmented reality apps

Remote service

management

Predictive quality

Energy management

Autonomous mining

Track and trace

Connected

logistics

Business model innovation

bull Making mining more

predictable and agile

bull New approaches in mine

developments

Digital core

Process innovation

bull Smarter mine modeling

bull Increased predictability

bull Sustainable sourcing

bull Precision mining

Performance based

contracting (BRIM)

Configure price and

quote

6INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP Leonardo Innovation Portfolio for IoT | Mining

SAP Leonardo Bridge

Product insights

Goods and equipment

Supply networks

Fixed asset insights

Manufacturing execution

Manufacturing networks

Mobile asset insights

Logistics safety

Logistics networks

Building insights

Construction

Energy grids

Market insights

Rural areas

Urban areas

People and work

People and health

People and homes

Connected

productsConnected

assetsConnected

fleetConnected

infrastructureConnected

marketsConnected

people

SAP Leonardo Foundation

SAP Cloud Platform SAP HANA platform

SAP Leonardo

Edge Services -

Computing

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

2INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Mining

Industry characteristics amp trends

Capital access amp Joint Ventures

ProductivityCash Optimization amp Switch to Growth

Social License to Operateamp Transparency

Capital raising

continues to be an

issue

Rather refinancing

than going into new

projects

Divestment of non-

core assets

Offering minority

positions to joint

venture partners

Productivity remains the

primary operational

challenge

Move away from ldquovolume

at any costrdquo

Digitalization of the value

chain to manage the full

value stream using real-

time production reporting

systems

Limited pricing amp

demand visibility

Ongoing market

volatility

Make sustainable

cost reduction that

do not erode value

Increase focus on

working capital

Improve capital

effectiveness

Social responsibility

Financial amp tax

regulations increase

Global trade

increases

Environmental

regulations increase

Labor regulations

Resource nationalism

Increase of

indigenous rights

Lower commodity prices and economic uncertainty and volatility are driving the need for innovation

Innovation ampCybersecurity

Faster time to value

required

Mobile simple access

to information

ITOT convergence

Hybrid landscapes

Automation amp robotics

GPS3D mine mapping

Handling Big Data

Theft and increasing

security risks

3INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Internet of Things and Industry 40

Internet of Things

Internal INDUSTRIAL scenario External scenario

SCADA HMI

Machine Layer

MES

ERP (PLM PP) raquo All industries

raquo All things and devices

raquo Ubiquitous

raquo Personalized

SMART Industrial

THINGS amp DEVICES

Industrie 40raquo Manufacturing

industries

raquo OT-IT convergence

raquo Systems things and devices on the shop floor

4INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Why IoT is important hellip

Sources

(1) IDC White Paper sponsored by SAP The Future Services Sector Connected Services for Continuous Delivery 2017

(2) McKinsey The Internet of Things Mapping the Value beyond the Hype 2015 (page 69)

Asset optimization10ndash60 lower service

and maintenance costs1

New business models15ndash25 faster revenue

growth than the industry

average1

Operations excellence 10ndash30 higher productivity1

Inventory optimization20ndash50 lower inventory

costs2

5INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

VALUE CREATION THROUGH

Operational innovation

bull Predictive maintenance

bull Automation for connected

mining

bull Precision-mining technology

IoT driving value for Mining

New business

scenarios

Development Extraction Transportation Sales and service Processing

Procurement Finance Human resources

Precise mining

Predictive

maintenance

Augmented reality apps

Remote service

management

Predictive quality

Energy management

Autonomous mining

Track and trace

Connected

logistics

Business model innovation

bull Making mining more

predictable and agile

bull New approaches in mine

developments

Digital core

Process innovation

bull Smarter mine modeling

bull Increased predictability

bull Sustainable sourcing

bull Precision mining

Performance based

contracting (BRIM)

Configure price and

quote

6INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP Leonardo Innovation Portfolio for IoT | Mining

SAP Leonardo Bridge

Product insights

Goods and equipment

Supply networks

Fixed asset insights

Manufacturing execution

Manufacturing networks

Mobile asset insights

Logistics safety

Logistics networks

Building insights

Construction

Energy grids

Market insights

Rural areas

Urban areas

People and work

People and health

People and homes

Connected

productsConnected

assetsConnected

fleetConnected

infrastructureConnected

marketsConnected

people

SAP Leonardo Foundation

SAP Cloud Platform SAP HANA platform

SAP Leonardo

Edge Services -

Computing

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

3INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Internet of Things and Industry 40

Internet of Things

Internal INDUSTRIAL scenario External scenario

SCADA HMI

Machine Layer

MES

ERP (PLM PP) raquo All industries

raquo All things and devices

raquo Ubiquitous

raquo Personalized

SMART Industrial

THINGS amp DEVICES

Industrie 40raquo Manufacturing

industries

raquo OT-IT convergence

raquo Systems things and devices on the shop floor

4INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Why IoT is important hellip

Sources

(1) IDC White Paper sponsored by SAP The Future Services Sector Connected Services for Continuous Delivery 2017

(2) McKinsey The Internet of Things Mapping the Value beyond the Hype 2015 (page 69)

Asset optimization10ndash60 lower service

and maintenance costs1

New business models15ndash25 faster revenue

growth than the industry

average1

Operations excellence 10ndash30 higher productivity1

Inventory optimization20ndash50 lower inventory

costs2

5INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

VALUE CREATION THROUGH

Operational innovation

bull Predictive maintenance

bull Automation for connected

mining

bull Precision-mining technology

IoT driving value for Mining

New business

scenarios

Development Extraction Transportation Sales and service Processing

Procurement Finance Human resources

Precise mining

Predictive

maintenance

Augmented reality apps

Remote service

management

Predictive quality

Energy management

Autonomous mining

Track and trace

Connected

logistics

Business model innovation

bull Making mining more

predictable and agile

bull New approaches in mine

developments

Digital core

Process innovation

bull Smarter mine modeling

bull Increased predictability

bull Sustainable sourcing

bull Precision mining

Performance based

contracting (BRIM)

Configure price and

quote

6INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP Leonardo Innovation Portfolio for IoT | Mining

SAP Leonardo Bridge

Product insights

Goods and equipment

Supply networks

Fixed asset insights

Manufacturing execution

Manufacturing networks

Mobile asset insights

Logistics safety

Logistics networks

Building insights

Construction

Energy grids

Market insights

Rural areas

Urban areas

People and work

People and health

People and homes

Connected

productsConnected

assetsConnected

fleetConnected

infrastructureConnected

marketsConnected

people

SAP Leonardo Foundation

SAP Cloud Platform SAP HANA platform

SAP Leonardo

Edge Services -

Computing

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

4INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Why IoT is important hellip

Sources

(1) IDC White Paper sponsored by SAP The Future Services Sector Connected Services for Continuous Delivery 2017

(2) McKinsey The Internet of Things Mapping the Value beyond the Hype 2015 (page 69)

Asset optimization10ndash60 lower service

and maintenance costs1

New business models15ndash25 faster revenue

growth than the industry

average1

Operations excellence 10ndash30 higher productivity1

Inventory optimization20ndash50 lower inventory

costs2

5INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

VALUE CREATION THROUGH

Operational innovation

bull Predictive maintenance

bull Automation for connected

mining

bull Precision-mining technology

IoT driving value for Mining

New business

scenarios

Development Extraction Transportation Sales and service Processing

Procurement Finance Human resources

Precise mining

Predictive

maintenance

Augmented reality apps

Remote service

management

Predictive quality

Energy management

Autonomous mining

Track and trace

Connected

logistics

Business model innovation

bull Making mining more

predictable and agile

bull New approaches in mine

developments

Digital core

Process innovation

bull Smarter mine modeling

bull Increased predictability

bull Sustainable sourcing

bull Precision mining

Performance based

contracting (BRIM)

Configure price and

quote

6INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP Leonardo Innovation Portfolio for IoT | Mining

SAP Leonardo Bridge

Product insights

Goods and equipment

Supply networks

Fixed asset insights

Manufacturing execution

Manufacturing networks

Mobile asset insights

Logistics safety

Logistics networks

Building insights

Construction

Energy grids

Market insights

Rural areas

Urban areas

People and work

People and health

People and homes

Connected

productsConnected

assetsConnected

fleetConnected

infrastructureConnected

marketsConnected

people

SAP Leonardo Foundation

SAP Cloud Platform SAP HANA platform

SAP Leonardo

Edge Services -

Computing

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

5INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

VALUE CREATION THROUGH

Operational innovation

bull Predictive maintenance

bull Automation for connected

mining

bull Precision-mining technology

IoT driving value for Mining

New business

scenarios

Development Extraction Transportation Sales and service Processing

Procurement Finance Human resources

Precise mining

Predictive

maintenance

Augmented reality apps

Remote service

management

Predictive quality

Energy management

Autonomous mining

Track and trace

Connected

logistics

Business model innovation

bull Making mining more

predictable and agile

bull New approaches in mine

developments

Digital core

Process innovation

bull Smarter mine modeling

bull Increased predictability

bull Sustainable sourcing

bull Precision mining

Performance based

contracting (BRIM)

Configure price and

quote

6INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP Leonardo Innovation Portfolio for IoT | Mining

SAP Leonardo Bridge

Product insights

Goods and equipment

Supply networks

Fixed asset insights

Manufacturing execution

Manufacturing networks

Mobile asset insights

Logistics safety

Logistics networks

Building insights

Construction

Energy grids

Market insights

Rural areas

Urban areas

People and work

People and health

People and homes

Connected

productsConnected

assetsConnected

fleetConnected

infrastructureConnected

marketsConnected

people

SAP Leonardo Foundation

SAP Cloud Platform SAP HANA platform

SAP Leonardo

Edge Services -

Computing

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

6INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP Leonardo Innovation Portfolio for IoT | Mining

SAP Leonardo Bridge

Product insights

Goods and equipment

Supply networks

Fixed asset insights

Manufacturing execution

Manufacturing networks

Mobile asset insights

Logistics safety

Logistics networks

Building insights

Construction

Energy grids

Market insights

Rural areas

Urban areas

People and work

People and health

People and homes

Connected

productsConnected

assetsConnected

fleetConnected

infrastructureConnected

marketsConnected

people

SAP Leonardo Foundation

SAP Cloud Platform SAP HANA platform

SAP Leonardo

Edge Services -

Computing

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

7INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Australian Iron Ore Mine

IoT ndash vehicle insights drive immediate savings

Initial use cases

Tracking of light vehicles hire vehicles and buses

Fuel Tax Credit ndash public vs private road usage

Shift from Periodic to Usage based Condition based

maintenance

Maximise fleet utilisation ndash reduce use of rented vehicles

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

8INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Prototype done at Vale

Challenges

bull Several unnecessary fields in the purchase

requisition confusing the user

bull Different source to find the proper item

(associated to a contract)

bull Complex Integration landscape to support the

process

bull 25-40 of the Purchase Requisition rejected by

procurement

bull ~50 of Rejection are related to the items with

Contracts already in place

bull Huge volume of RFQs lines with different vendor

lists

bull Generic Service Master ndash Lack of description for

the service required

Objective

Reduce the high number of rejections for spot purchase requisitions in VALE

Implemented prototype with integration to ERP using machine learning (picture recognition) on SAP Cloud Platform

Result

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

9INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Roy Hill

Operational

innovationAnalyzes tire sensor data truck load

environmental factors and operator

behavior Results change operator

training speed guidelines road

layouts and increase tire life

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

10INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Process

innovationWearable technologies are

improving minerrsquos safety with

real-time communication

Source httpillumiticomnews-eventsillumiti-and-vandrico-launch-minesafe-smartwatch-running-on-the-sap-

hana-platform

Underground Mining

11INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Unified lsquoMining Businessrsquo Planning amp Control

Unified lsquoMining Businessrsquo Planning amp Control

11

Enterprise Resource

Planning

Domain

lsquoERPrsquo Processes

Strat amp Planning

Resource amp Logistics

Mgt

lsquoMoneyrsquo

Work Management

Mine Technical Systems

Domain

Mine Techni

cal

Geology

Planning

Utilities

Engineering

SIC

Survey

A

bull Reduce planning cycle time from weeks to days

bull Simulate multiple mine planning scenarios

bull Re-plan in case of changing market condition

12INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Sweeping

Planned

Orders

Production

Orders

Mine

Scheduling

HR T amp A

Procurement

Inventory

next 60 months

next 6 weeks

Crushing

BeneficiationStockpile(RoM)

IBP

(Demand)MRP

Maintenance

Face

PreparationDrilling Charging Blasting

Stockpile

Loading Hoisting

Production Progress

bull Operations

high level

bull BOM

bull Costs

bull Operations in detail

bull BOM

Run your Mine Like A factory ndash example for underground mine

12

MTS layer

13INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP in the Mining Industry

SAP customers produce 70 of

the worlds Gold

17 of the 20top mining companies

in the world run SAP solutions

67of Diversified Metals amp Mining Companies in Forbes

Global 2000 are SAP customers

More than 770 mining customers in more than 71 countries

90 of the top 10 Copper

Miners run SAP Solutions

12INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

Sweeping

Planned

Orders

Production

Orders

Mine

Scheduling

HR T amp A

Procurement

Inventory

next 60 months

next 6 weeks

Crushing

BeneficiationStockpile(RoM)

IBP

(Demand)MRP

Maintenance

Face

PreparationDrilling Charging Blasting

Stockpile

Loading Hoisting

Production Progress

bull Operations

high level

bull BOM

bull Costs

bull Operations in detail

bull BOM

Run your Mine Like A factory ndash example for underground mine

12

MTS layer

13INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP in the Mining Industry

SAP customers produce 70 of

the worlds Gold

17 of the 20top mining companies

in the world run SAP solutions

67of Diversified Metals amp Mining Companies in Forbes

Global 2000 are SAP customers

More than 770 mining customers in more than 71 countries

90 of the top 10 Copper

Miners run SAP Solutions

13INTERNALcopy 2017 SAP SE or an SAP affiliate company All rights reserved ǀ

SAP in the Mining Industry

SAP customers produce 70 of

the worlds Gold

17 of the 20top mining companies

in the world run SAP solutions

67of Diversified Metals amp Mining Companies in Forbes

Global 2000 are SAP customers

More than 770 mining customers in more than 71 countries

90 of the top 10 Copper

Miners run SAP Solutions

Thank you

SAP SE

VP Global Head Mining amp Metals

Industry Solution Management

IBU Mill Products amp Mining

Georg Gradl

T +49 6227 744905

M +49 170 8555531

E georggradlsapcom