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Material Movement Optimization & Fleet Management System PT. Modular Mining Indonesia 2018



1



AGENDA 1



Mining Trend



2



Loading & Hauling



3



Optimization Strategy



4



Fleet Management System (DISPATCH®)



2



Mining Trend in 2018 1



Bringing digital to life



Using data-driven insight to drive value



Finding sustainable solutions to a pressing issue



7



Investors demand greater accountability



8



Finding a balance between caution and courage



9



New skillsets are needed to help drive transformation



10



Predicting tomorrow’s disruptors



Overcoming innovation barriers



2



3



Charting a path towards innovation maturity The future of work



Re-envisioning talent management in digital age The image of mining



4



Changing public, employee, and customer perceptions



5



The growing need to achieve measurable social outcomes



Transforming stakeholder relationships



Water management



6



Changing shareholder expectations



Reserve management woes



Realigning mining boards



Commodities of the future



Source: Tracking the trends 2018, by Deloitte



Trend #1 dan #3 di 2018 versi Delloite berfokus pada data dan digitalisasi #1. Using data-driven insight to drive value: Kemampuan menggunakan analisis yang rasional dan menyeluruh berdasarkan pada data untuk menghasilkan ide-ide baru, keputusan investasi, inovasi yang sesuai dengan bisnis saat ini maupun maupun transformational.



#3.Menyiapkan visi baru dengan ditemukannya kemampuan yang baru di zaman digital: Ketika digitalisasi di industry tambang menjadi kenyataan, akan ada perubahan cara kerja yang signifikan, teknologi automasi (Robot process automation) dan Artificial Inteligent. Hal-hal ini akan sangat memungkinkan kegiatan penambangan dilakukan dengan tempat dan kondisi yang berbeda dari sebelumnya.



3



2017-2018 Mining Top 10 Business Risks #1 DIGITAL EFFECTIVENESS



Focus: Using digital to solve the most urgent business problem: Improving Productivity and margins across the value chain Source: Top 10 business risks facing mining and metals 2017–2018, by EY



Digitalisasi bukan hanya sekedar adopsi teknologi baru, tetapi harus mampu menyelesaikan masalah terbesar di industry tambang, yaitu: Meningkatkan produktivitas dan keuntungan dari seluruh nata rantai kegiatan. Namun, adanya peralatan/teknologi baru bisa jadi kurang bermanfaat tanpa kemampuan berintegrasi dan berkembang dengan aplikasi yang sudah ada. Digitalisasi juga diharapkan menambah kemampuan mengakses data tambahan.



4



AGENDA 1



Mining Trend



2



Loading & Hauling



3



Optimization Strategy



4



Fleet Management System (DISPATCH®)



5



Loading & Hauling Cycle Queue: When truck arrives at shovel, but shovel is still loading other unit.



Empty Travel: Truck is traveling to shovel with no material.



Dumping: Truck is unloading the material at disposal/ crusher/ stockpile.



Spot: When truck is approaching shovel for loading activity.



Loading: Shovel is loading material to the truck.



Full Travel: Truck is traveling to disposal/ crusher/ stockpile with material.



6



Cost of Mining



Kegiatan penambangan memiliki kontribusi terbesar dari total biaya dalam satu industry pertambangan (29%)



7



Haulage as a % of Overall Mining Costs



Dalam kegiatan penambangan sendiri, 50% biayanya bersumber dari kegiatan pengangkutan. Sehingga perbaikan yang berdampak pada efisiensi kegiatan pengangkutan akan berdampak signifikan dalam mengurangi total biaya penambangan.



8



AGENDA 1



Mining Trend



2



Loading & Hauling



3



Optimization Strategy



4



Fleet Management System (DISPATCH®)



9



Common Operational Issues



Misallocate Material Movement



Excessive Queueing and Delay Events



Premature Tire Failure



Excessive Equipment Idling



Excessive Fuel Consumption



Strategi optimasi dalam kegiatan pengangkutan dalam penambangan berfokus pada penyelesaian issue Ineffisiensi yang ada.



10



What is Optimization? Optimization is an act, process, or methodology of making something (design, system, or decision) as fully perfect, functional, and effective as possible.



Optimization in Mine To use all mine fleets in balance between loading and transportation to achieve target productivity as effective as possible.



11



What does this picture tell you?



Seringkali kegiatan/proses yang tidak efektif dan efisien terlihat secara kasat mata dalam operasi penambangan. Sarjana tambang diharapkan bisa mengidentifikasi hal-hal ini lebih awal dan mencarikan solusinya.



12



Steps to Optimize Loading & Hauling



Optimizing Strategy 1) Choosing the Right Equipment 2) Maintaining an Efficient Truck Distribution Ratio 3) Managing an Effective Truck Dispatching Activities



13



1. Choosing the Right Equipment (1/5) In Indonesia, truck & shovel method is still favorable, with some constraints in choosing equipment. Choosing haulage equipment depends on what equipment we use for loading, hauling distance, and material type. Example: o Heavy Duty Haul Truck suitable for shorter distance o Coal hauling with longer distance can use rigid truck, single trailer, double trailer, etc. While, choosing loading equipment depends on the mine design, mining method, and material type. Examples: o Backhoe type excavator is more suitable for narrow area, o Shovel excavator is more ok when the working area is still wide, o Suit Loading equipment size for bench design (single or double)



14



1. Choosing the Right Equipment (2/5) Overburden Hauling Komatsu 730E-8



Up to 200 ton payload.



CAT 797F



Up to 363 ton payload.



Komatsu 980E-4



Up to 400 ton payload.



Coal Hauling Rigid Truck



Up to 30 ton payload. Suitable for low volume sites.



Single Trailer



Up to 60 ton payload. Suitable for smaller operations



Double Trailer



Between 120 to 150 ton payload. Suitable for medium and larger operations.



Dual Powered Road Train



Up to 450 ton across 4-5 trailers. Most efficient solution for larger operations



15



1. Choosing the Right Equipment (3/5) Backhoe Excavators Komatsu PC2000-8



Bucket Capacity : 12.0 -13.6 m3



Komatsu PC5500-6



Bucket Capacity : 26 - 29 m3



Komatsu PC7000-6



Capacity : 36 m3



Shovel Excavators CAT 7395



Bucket Capacity : 20 - 56 m3



Komatsu PC8000-8



Bucket Capacity : 42 m3



Bucyrus 495HF



Bucket Capacity : 30 - 63 m3



16



1. Choosing the Right Equipment (4/5) The Bigger the Cheaper? Cost structure in Indonesia mines vs Australia mines:  The highest cost in Indonesia = Fuel Cost  The highest cost in Australia = Labor Cost



Reasons to increase size capacity of hauling equipment,  In Indonesia = Crowded Traffic at Mine  In Australia = High Labor Cost



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1. Choosing the Right Equipment (5/5) Influencing Factors Equipment Size



Destination/Location



Haul Road



• Shovel should be supplied with trucks which need 3-4 passes for a load



• Some big trucks may not allowed in some destinations due to dump condition (eg. soft pad)



• Due to mechanical/electrical issue, some trucks may not allowed passing steeper haul road



• Excavator should be supplied with trucks which need 4-5 passes for a load



• Some small trucks may not allowed in some destinations/crushers (eg. high dump block)



• In term of size, some trucks may not allowed to pass some road due to width and super elevation.



• In case of lower truck availability, some exception may be given by given.



Truck Medium



Large



Extra Large



Small Medium



Truck Small



Medium



Large



Extra Large



Loc A



Location



Digger



Small



Illustration



Large



Loc B Loc C Loc D Loc E



Allowed



Allowed for some reasons



Not-Allowed



Ke-Efektifan dan efisiensi dari kegiatan penambangan sudah dipersiapkan dari awal perencanaan penambangan, dimana Keselataman dan kesesuaian sudah termasuk di dalamnya.



18



2. Maintaining an Efficient Truck Distribution Ratio (1/3) Operations Research or Operational Research (OR) is “An interdisciplinary branch of mathematics which uses methods like mathematical modeling, statistics, and algorithms to arrive at optimal or good decisions in complex problems which are concerned with optimizing the maxima (profit, faster assembly line, greater crop yield, higher bandwidth, etc.) or minima (cost loss, lowering of risk, etc) of some objective function.” In simple way, the objectives of Operations Research is to elicit a best possible solution to a problem mathematically, which improves or optimizes the performance of the system. Development during World War II George Dantzig develops the simplex method for solving linear programs (1947)  Refueling and supplying troops,  Developed queuing theory (minimize queuing), and many more



19



2. Maintaining an Efficient Truck Distribution Ratio (2/3) Match Factor Is the ratio of truck arrival times to loader service rates. Used as an indicator of productivity performance. 𝑴𝒂𝒕𝒄𝒉 𝑭𝒂𝒄𝒕𝒐𝒓 𝑴𝑭 = where, • • • •



𝒏𝑻𝒓 𝒙 𝑪𝑻𝑺𝒉 𝒏𝑺𝒉 𝒙 𝑪𝑻𝑻𝒓



𝑛 = Number of Truck 𝑛 = Number of Shovels 𝐶𝑇 = Cycle Time of Shovel (Spot + Load) 𝐶𝑇 = Cycle Time of Truck (Empty Travel + Spot + Load + Full Travel + Dump)



MF = 1  Match MF < 1  Under-trucked MF > 1  Over-trucked



20



2. Maintaining an Efficient Truck Distribution Ratio (3/3) Optimum Match Factor Value Analysis Truck and Shovel Efficiency Chart 100 90



Hang and Queue (%)



80 70 60 50 40 30 20 10 0 0.4



0.6



0.8



1



1.2



1.4



1.6



Match Factor



Hang



Queue



Production



Cost



21



3. Managing an Effective Truck Dispatching Activities (1/3) A. High Truck Queuing Condition - Strategies for Controlling Truck Queueing (Over-trucked)



One digger is queued with 2 or more trucks when other digger in the same region is waiting for truck Action : Assign truck to the hanging digger in the region Some digger in one region cannot operate due to delay/standby/down, while other digger in other region still work Action : Send trucks to region with working diggers Most diggers in all region are queued with trucks Action : Utilize longer haul dump location. This is the opportunity for long haul dump Diggers are queued by trucks event with long haul dump. Action : Standby the trucks



Sederhananya, Penugasan Truck adalah cara untuk mendapatkan Mach factor yang diinginkan, dimana secara langsung dilapangan terlihat dengan kondisi antrian (queue) truck di alat muat maupun lokasi penimbunan dan kondisi alat muat yang menunggu truck.



22



3. Managing an Effective Truck Dispatching Activities (2/3) B. High Shovel Hang Condition - Strategies for Controlling Shovel hanging (Under-trucked) One digger is waiting for trucks when other digger in the same region is queued by trucks Action : Assign truck to the hanging digger Some number of trucks are not working due to delay/standby/down, while other truck in other region are available Action : Send trucks to region with working diggers Most diggers in all region are hanging/waiting for trucks Action : Choose the short haul dump for all region.



Diggers are hanging/waiting for trucks event with short haul dump. Action : Standby Digger with lower priority.



Untuk jumlah peralatan yang sedikit dan area (region) yang juga sedikit, konsep sederhana berupa penugasan secara manual dapat dilakukan. Namun, hambatan berupa kondisi/status actual secara real-time dari setiap unit adalah hal yang mustahil untuk dimiliki untuk melakukan penugasan secara manual.



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3. Managing an Effective Truck Dispatching Activities (3/3) Revolutionize the Manual to Real-time Optimization



Manual/Conventional Truck Dispatching:



Real-time Optimization: DISPATCH®



• Lock some numbers of truck to one Loading unit • Manual truck assignment as responses of changes • Fix Schedule for Truck Refueling • Fixed and Locked Shift change Process



Selain ketidakmampuan memiliki data secara real-time, jumlah unit (digger, hauler, support equipment) dan sumberdaya lainnya (operator, crusher, Shops, dumps, stockpile dan jalan tambang) merupakan tantangan yang besar dalam optimalisasi suatu penemabangan. Untuk itu teknologi fleet management system, DISPATCH®sangat diperlukan.



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AGENDA 1



Mining Trend



2



Loading & Hauling



3



Optimization Strategy



4



Fleet Management System (DISPATCH®)



25



What is Fleet Management System Fleet Management System (FMS) is an integrated system with combination of Global Navigation Satellite System (GNSS), graphical console, Computer programming, data and radio package which is stored into single database and used for any purposes, etc. real time optimization, improvement and reporting. Pit Resources • Optimized Assignment



• Digger • Truck



FMS-DISPATCH®



• Aux Equipt.



FMS



• Material



• Equipment Tracking • Equipment Control • Crew Management



• Dumping location



• Safety Management



• Operator



• Material Management



• Road • Shops   



GPS Device on board Computer programming



26



DISPATCH®



DISPATCH® is a mine management system for the real-time dispatching of vehicles for open-pit mining operations. DISPATCH® truck assignment decisions are generated with a multitiered solution procedure designed for maximal productivity – optimal utilization of haulage resources while satisfying production requirements and operational constraints.



27



DISPATCH® ALGORITHMS Mining operations are dynamic, resulting in non-static resource levels and performance quantities. DISPATCH is cognizant of this.



What input is used by the models? Mine topography road network



BP



Best travel routes



Changes in mine topography road network



Pit operational configuration, constraints



LP



Haulage flow paths & rates



DP



Assignments



Changes in operational configuration, constraints Upset events



What triggers re-computation of model solutions?



BP Determines “shortest” route for traveling between every pair of locations in the mine. Uses a mathematical model of the mine’s road network. Uses travel time as criterion for “shortest”. LP The theoretical haulage “Master Plan” which considers production and operational constraints. Determines maximum flow rate from every source to every destination. DP Uses the LP’s Master Plan as a reference. It tries to achieve “balance and synchronization” while meeting the LP flow rates. Truck and shovel need lists DP builds “future” scenarios when generating assignments. LP is the optimal solution, DP uses that solution when determining future scenarios



28



Best Path (BP) • First phase of Dispatch 3-phase algorithm for truck assignment. • Determines the best available route for traveling between every pair of locations in the mine. • Requires healthy road network (Graphics), all locations must be correct (in pit dumps, etc) • Only recalculated when road network changes.



BP Menentukan “shortest” route dari tiap lokasi ke tiap destinasi.. Istilah “shortest” menggunakan kriteria waktu tempuh.



29



Linear Programming (1/2) • Linear programming is one of the most powerful tools in operations research. • The elements of the model identify the requisite components for a decision-making problem. • The LP model creates a theoretical master plan for maximizing overall truck productivity in the mine: • Dumping points that provide haulage resources (empty trucks) to shovels, truck type (resources), and the feed rates • Which shovels should provide haulage resources (loaded trucks) to which dumping points and the feed rates at which the resource should cover the dumping points • LP calculates number of trucks required for each LP Path.



LP Merupakan teoritikal hauling “Master Plan” yang mempertimbangkan Batasan produksi dan operasional. Menentukan flow rate maksimal tiap lokasi dan sumber material.



30



Linear Programming (2/2) Simplex Method •



DISPATCH uses a simplex-based procedure







The Simplex Method exploits Dantzig’s Corner Point Theorem: an optimal solution is located at an extreme point of the feasible region of the problem.







Other methods with very good theoretical and complexity properties – in particular, interior-point methods – have been developed.



Still the simplex method is the workhorse of LP – for a simple reason: it has consistently proven to be very efficient in practice.



31



Dynamic Programming • Dynamic Program (DP) attempts to enforce, in real time, the production circuits in the theoretical LP solution. • DP builds a Truck and Shovel need lists. DP works to achieve “balance and synchronization” while meeting the LP flow rates. • Truck-shovel pairing evaluations are made not only with respect to the truck requiring immediate assignment, but also for trucks in the system that are projected to require assignments within a time frame. • DP also builds “future” scenarios when generating assignments. Also considering: • Locks, bars, fuel levels…



DP Menggunakan LP’s Master Plan sebagai referensi Mengusahakan “balance and synchronization” untuk mendapatkan LP flow rates.



32



BP, LP & DP (1/2) Linear Programming B.P options



33



BP, LP & DP (2/2) DISPATCH System Selected Paths



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Advanced Stage “Mine Optimization”



Full Benefits of Fleet Management System



 …etc.  Sales and Operations Planning  Inventory Management  Capability Development  Manpower Planning  Strategic Investment Decision  Asset Allocation  Mine Planning



Intermediate Stage “Fleet Optimization”



 Maintenance Cost Savings  Key Performance Indicators



 Automate Optimization



 Automate Optimization



 Fatigue Management



 Fatigue Management



 Optimize Fuel Consumption



 Optimize Fuel Consumption



 Increase Productivity



 Increase Productivity



 Basic Fleet Distribution



 Basic Fleet Distribution



 Basic Fleet Distribution



 Operator Compliance/Safety



 Operator Compliance/Safety



 Operator Compliance/Safety



 Seamless Communication



 Seamless Communication



 Seamless Communication



 Real Time Visibility & Tracking



 Real Time Visibility & Tracking



 Real Time Visibility & Tracking



Early Stage “Fleet Monitoring”



35