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1 New Vaal Colliery 09 November 2016 Spare Parts Management

Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

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Page 1: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

1

New Vaal Colliery

09 November 2016

Spare Parts Management

Page 2: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

2

INDEX

1. Introduction

2. Owner Maintained Methodology

3. Contractor (LCC / TCO)

4. Dragline Parts Management

5. Road Map / Journey

Page 3: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

3

INDEX

1. Introduction

2. Owner Maintained Methodology

3. Contractor (LCC / TCO)

4. Dragline Parts Management

Page 4: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

4

Introduction

Location New Vaal

WARMBAD

KROONSTAD

WELKOM

VAALWATERPOTGIETERSRUS

PIETERSBURG

RUSTENBURG

LYDENBURG

NELSPRUIT

MESSINA

LOUIS TRICHARDT

TZANEEN

PHALABORWA

MAPUTO

KOMATIPOORT

RICHARDS BAY

0 2040 6080100

ERMELOSECUNDA

STANDERTON

BELFAST

HEILBRON

PRETORIA

JOHANNESBURG

HEIDELBERG

VEREENIGING

NEWCASTL

E

DUNDEE

BOTSWANA

LIMPOPO PROVINCE

NORTH WEST

PROVINCE

GAUTENGMPUMALANGA

FREESTATE

LESOTHO

KWAZULU NATAL

SWAZILAND

INDIAN OCEAN

ZIMBABWE

MOCAMBIQUE

LIMPOPO B

ASIN

SOUTPANSBERG

BASIN

LEBO

MBO

BASIN

WATERBERG

BASIN

SPRINGBOK

FLATS

BASIN

MAIN KAROO

BASIN

ELLISRAS

BETHAL

UTRECHT

WITBANK

WARMBAD

KROONSTAD

WELKOM

VAALWATERPOTGIETERSRUS

PIETERSBURG

RUSTENBURG

LYDENBURG

NELSPRUIT

MESSINA

LOUIS TRICHARDT

TZANEEN

PHALABORWA

MAPUTO

KOMATIPOORT

RICHARDS BAY

0 2040 6080100

ERMELOSECUNDA

STANDERTON

BELFAST

HEILBRON

PRETORIA

JOHANNESBURG

HEIDELBERG

VEREENIGING

NEWCASTL

E

DUNDEE

BOTSWANA

LIMPOPO PROVINCE

NORTH WEST

PROVINCE

GAUTENGMPUMALANGA

FREESTATE

LESOTHO

KWAZULU NATAL

SWAZILAND

INDIAN OCEAN

ZIMBABWE

MOCAMBIQUE

LIMPOPO B

ASIN

SOUTPANSBERG

BASIN

LEBO

MBO

BASIN

WATERBERG

BASIN

SPRINGBOK

FLATS

BASIN

MAIN KAROO

BASIN

ELLISRAS

BETHAL

UTRECHT

WITBANK

8 km

6k

m

Mining Authorization =4 653Ha

Total Reserves = 702Mt

Total Remaining Reserves = 256Mt

Page 5: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

5

Introduction

Mining Parameters New Vaal

• Lowest quality coal supplied to any power station in SA – 15.6MJ/kg & 41% ash

• Coalfield covered with sand at an average thickness of 25m

• Coalfield previously mined by underground methods

• Surrounded by major towns

• 3600 MW

• 10% of SA’s power generation

• 18mtpa burn rate

• Life: 2030 / Lifex: 2050

• Total employees = 1 028 (excluding stockyard)

• Contractors = 400

• Waste p.a. = 121,000,000 tonnes

• ROM coal p.a. = 18,300,000 tonnes

• Sales coal p.a. = 17,000,000 tonnes

• Sales Strip Ratio = 1.8

• Yield factor = 95%

COAL RESERVE

LETHABO POWER STATION

NEW VAAL COLLIERY

Page 6: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

6

Introduction

Fleet Size

87 HME in Total

Page 7: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

7

Introduction

Maintenance Management System

Page 8: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Introduction

NVC Parts Management

Consumables

Non-critical components

Critical Components

Life cycle components

applying tools such as

condition monitoring to

manage effectively

Items forming part of

service kits or

application part lists

(APL’s / BOM)

Components with a

run-to failure strategy.

Quickly replaceable,

i.e. starters, alternators

and motors

Page 9: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

9

INDEX

1. Introduction

2. Owner Maintained Methodology

3. Contractor (LCC / TCO)

4. Dragline Parts Management

Page 10: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Definition:

1. A unit that forms part of a machine’s main assembly / forms part of equipment

2. Fully interchangeable

3. Identified during equipment criticality assessment

4. Normally associated with high costs and long lead times

5. Known as a critical spare, classified during Maintenance Tactics (example below)

Owner Maintained

Definition of a “sub-assembly”

Maintenance Tactics:

1. Critical A = High cost items > R500 000 / Complex repairs / High loss of production

2. Critical B = Average cost items > R100 000 / Slightly Complex repairs / Medium loss of production

3. Critical C = Low cost items < R100 000 / Fairly simple repairs / Minimal loss of production.

Page 11: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

The number of spares typically depend upon:

1. Fleet size / Age of equipment

2. Equipment / component criticality

3. Review of historical statistics or data

4. OEM recommendations

5. Repair, turnaround times and lead times

6. Paired components, i.e. engine with radiators, transmission with torque converters etc.

Owner Maintained

Determining Spare Quantities

Page 12: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Target lives are normally determined by:

1. Historical performance analysis (Ellipse)

2. OEM recommendations

3. Industry averages

4. Technological advances

5. Condition monitoring results

6. Maintenance tactics improvements

Owner Maintained

Determining Target Lives

Page 13: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Enterprise Resource Planning (ERP):

• Ellipse

• Dedicated sub-assembly module to carry out fitments / de-fitments

• Dedicated work order types and standard jobs

• Unique component numbers for each critical spare

Dedicated Sub-Assembly Controller:

• Maintains work orders and rotable equipment

Technical Expediter Interventions:

• Repair / warranty inspections and approval

• Quotation review and approval

Sub-Assembly Performance Reports

• Component status and health

• Failure history

• Component target life review

• Defect Elimination process – DECA

Owner Maintained

Management Summary

Page 14: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Non-LCC Equipment, Owner Managed & Maintained:

• Buffer store of service parts and common spares kept on site (managed by Foremen)

• Vendor managed site depots also keep fast moving parts

• Parts are ordered by means of quote and order number for all transactions

• Critical sub-assemblies are kept in Mine Sub-Assembly Store for some of these fleets

• Typical sub-assemblies are big five, radiators/coolers, hydraulic pumps and cylinders

• Rely on Johannesburg OEM warehouse for large portion of parts due to close proximity

Lubricants:

• Common lubricants are stored in bulk on site, piped to workshops

• Engine, hydraulic, transmission oils, coolant

• Special oils are stocked in Mine Store in drums

On-Site Hydraulic Pipe Store:

• Vendor managed inventory (bulk hose reels and fittings) and pipe crimping equipment

• Majority of replacement hydraulic hoses are made on site to size

• Saves on downtime and stock holding

• Manned 24/7

Tyres:

• Stores and Tyrebay keep stock of all tyre sizes

• Make provision for forecasted usage with buffer

• Tyre usage is forecasted 5 years in advance

• Tyre orders are booked with major suppliers one year in advance to avoid shortages

Owner Maintained

Other Considerations

Page 15: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

15

INDEX

1. Introduction

2. Owner Maintained Methodology

3. Contractor (LCC / TCO)

4. Dragline Parts Management

Page 16: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Life Cycle Costing (LCC) / Total Cost of Ownership (TCO):

• Komatsu & Hitachi

• Mine pays manufacturer R/hr. rate

• Rate changes every 5000 hrs., fluctuates as equipment goes through life cycle

• As age approaches cycle where sub-assemblies are replaced the rate goes up to

compensate (typically approaching 20,000 hours and 40,000 hours)

• Manufacturer supplies all parts to maintain the equipment including major sub-

assemblies like big five (engine, transmission, torque converter, differential, final drives)

• Exceptions: Under-carriages, tyres, add-on systems (onboard fire suppression system,

fuel management system, cameras, CWS, etc.)

• Manufacturer recovers costs from the rates paid

• Contract guarantees availability of parts and penalties for excessive standing time due

to poor component reliability and availability

• If equipment availability is low the OEM’s revenue is low

Parts Management

LCC & TCO

Page 17: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Example of LCC Rates Table:

Parts Management

LCC & TCO

Page 18: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Contractor Maintained Non-LCC Equipment:

• Barlows / CAT

• Contractor provided with bulk service order per machine against which parts are

ordered

• Quotes are spot approved, consolidated / invoiced monthly

• Buffer store of service parts and common spares kept on site by Contractor

• Critical sub-assemblies are kept in Mine Sub-Store for some of these fleets

• Rely on Johannesburg OEM warehouses for large portion of parts due to close

proximity

• Contract is for labour only with guaranteed workmanship

Parts Management

Non-LCC

Page 19: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

19

INDEX

1. Introduction

2. Owner Maintained Methodology

3. Contractor (LCC / TCO)

4. Dragline Parts Management

Page 20: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Dragline Motors and Generators (Reid & Mitchell):

• 16 x motors, 12 x generators and 2 x sync motors installed per dragline

• Managed as a Group Spare at the facility of Reid & Mitchell

• Components are replaced with refurbished units on planned and unplanned basis

• Motors and Generators are expected to last 100000 hrs

• Reid & Mitchell delivers refurbished or new units to the mine and collects failed units for repair

• The mine is responsible for the installation of these components

• Reid & Mitchell does the final alignment before commissioning

• Spare Components include 6 Hoist/Drag 824MDP Motors, 6 Hoist/Drag 1045 Generators, 6 800HP Propel Motors, 6

Swing 826MDP Motors and 2 3000HP Sync Motors

Gears (Barloworld):

• Hoist, Drag, Swing and Propel gears are kept as Group Spares at Barloworld facility.

• The majority of gears are changed out on condition based strategy, but are kept on the Life Of Mine schedule as

developed by divisional.

• Gears are however procured based on the Life Of Mine schedule due to the long lead times and kept until such time

that replacement become necessary.

Dragline Parts Management

Group Spare Strategy

Page 21: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Propel Mechanisms:

• One propel cam and cam shaft in Group Spare and kept here at New Vaal

• The cam and shaft is replaced based on condition and fatigue

• Repairs are conducted by DCD Dorbyl in Vereenging

Fairlead Assembly:

• Fearlead frames and sheave are refurbished by Sheffer and supplied to the mine

• Jormid (Dragline maintenance contractors) remove and install these components

• Fairleads are changed out every 18 month depending the shutdown schedule and boom point swivel assemblies

are changed based on extent of fatigue cracking and general condition

• Fearlead assembly are kept as a group spare at Scheffer’s facility while one Boom swivel assembly is in dragline

mechanical store at NVC

Boom Suspension Ropes & Links:

• Lead time of 50 weeks on links and 20 weeks on ropes

• Links are supplied by Barloworld and ropes are supplied by Scaw

• Items are ordered in advance of shutdowns depending on the Life of Mine Schedule

Hoist & Drag Drums:

• No spares are kept in the Group

• NVC has never replaced any drum on any of its dragline but do date has only conducted repairs

• There appears to be acceleration in crack appearance and NVC is currently in the process of investigating the

purchase of one drum

• Cracks are identified by ACRES, excavated by Jormid, welded and capped by OSEC

• OSEC and Barloworld are also potential suppliers of new drums

Dragline Parts Management

Insurance Spare Strategy

Page 22: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

A-Frame Legs:

• NVC purchased 2 rear legs which were installed on Dragline 1 during its shutdown conducted during 2015.

• The old legs were sent to ILCA trading which is in the process of repairing there legs, which will then be used as

spare units should the need arise to replace the rear legs on Dragline 2 or 3.

Dragline Shoe:

• One shoe is kept on site and installed should there be rapid deterioration of any shoe currently installed.

• This shoe is the first shoe purchased as a spare

• Shoe a replacement take place, the shoe removed from the dragline will be send to VR Steel for refurbishment and

returned to the mine as a spare.

Centre Pintle:

• One used centre pintle kept in the store’s facility

• The strategy of keeping a centre pintle is not clear as it forms part of an entire tub assembly and cannot be replaced

without a major intervention.

• Generally the entire tub is changed out and not only the centre pintle.

Boom Point Swivel:

• Boom point swivel and sheaves are refurbished by Scheffer and supplied to the mine

• The boom point cross beam is supplied by Barloworld

• Jormid (Dragline maintenance contractors) remove and install these components

Dragline Parts Management

Insurance Spare Strategy

Page 23: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Sub-Assembly Management (Principle Dragline Engineer – Willie Venter):

• The majority of major and critical components are kept on a Life of Mine schedule drawn-up and managed by

Divisional Dragline Engineering.

• Components are major and critical based on their cost, lead time to procure and the size of intervention required to

change them out.

• This LOM schedule are valuable for forecasting and budget cycles and assist with spares management on site and in

the group.

• Divisional Dragline Engineering provides valuable assistance in sourcing alternative suppliers of components and

ensure that cost, quality and delivery remain priority in such decisions.

• Divisional Dragline Engineering also perform regular inspections and condition monitoring on critical installed

components in order to track normal or rapid deterioration to ensure that procurement or keeping of critical spares

remain live and up-to-date.

Dragline Parts Management

Life of Mine Components

Page 24: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Dragline PLC Drive Systems (Siemens):

• 4 Drives installed per dragline

• Spares include cards, ISO Amps, Temperature Probes and Proximity Switches, cables, JLT screens of which we

have 3 spare units each at any time

• Spares are kept on the mine in the Electrical Workshop Spares Facility

Dragline HT Room (ALSTOM):

• 3 Vacuum Breakers installed per dragline

• Components are change out on condition basis.

• Installed equipment are maintained annually by WPI.

• 3 Spare Vacuum breakers for generators

• 2 Spare Vacuum breakers for incomers

Bucket & Jewellery:

• General Repairs are done at NVC with Major repairs at VR Steel

• VR Steel supplies new buckets

• Generally, 3 installed, 3 in for repairs and 2 spare

• VR Steel supplies hitches, links, wedges and sockets (1 set of each on the mine)

• ILCA Trading refurbish Dump Blocks & Spreader bars (1 set of each on the mine)

• Scheffer supplies dump chains, clevises, equalizers (1 set of each on the mine)

Lubricants:

• Fuchs is the supplier of OGL (gear oil), LI500 (bearing grease)

• It’s a stock item and delivered to site on the day it is required

• A contract is in place with Fuchs for the supply

Dragline Parts Management

Site Managed Components / Parts

Page 25: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Ropes:

• Hoist & Drag Ropes is stock item at stores and supplied by Scaw

• Hoist + drag rope are replaced at 5 mil and 3 mil TCMs respectively / if rope condition demands earlier change-outs.

• 1 set of each is booked out and kept in the field ready for installation

• Ropes are replaced by mine personnel using mine equipment

• Dump rope is replaced with old hoist rope cut-offs

Gears:

• Gears are supplied by Barloworld and kept as a Group Spare at Barloworld facility in Johannesburg, but recently

there has been a Divisional drive to investigate an alternative supplier (Vulcan as potential supplier from India)

• Changed out on a Life Of Mine Plan basis or condition based

• 1 complete Hoist/Drag, Swing and Propel Gear set (20 gears in total)

Dragline Parts Management

Site Managed Components / Parts

Page 26: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

26

INDEX

1. Introduction

2. Owner Maintained Methodology

3. Contractor (LCC / TCO)

4. Dragline Parts Management

5. Road Map / Journey

Page 27: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

Parts Management

Journey

Owner

Managed

Spares

LCC /

Vendor

Managed

Spares

Application

Part Lists

(APL) in place

Maint. Tactics

Review – select

critical spares

• LinkOne

• Buffer Store ▼

• Fleet standardise

• Centralised store

2007

2019

Journey to towards

Excellence…

TODAY

Page 28: Spare Parts Management - Gordian Logistic Experts€¦ · Spare Parts Management. 2 INDEX 1. Introduction 2. Owner Maintained Methodology 3. Contractor (LCC / TCO) 4. Dragline Parts

28

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