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  HME Management in Mega Mining: Sishen Mine – South Africa    An investigation into various elements influencing cycle times, payloads and utilization; the three key factors determining overall Heavy Mining Equipment efficiency. A project report submitted in partial fulfilment of the requirements for the Degree of Master of Engineering Management at the University of Canterbury. ENMG 680: Project Engineering Management Programme 2012 University of Canterbury Prepared By: Erik Loots For: Kumba Iron Ore Ltd Submitted: 06/02/2013 Version: 1.1    Erik Loots | HME Management in Mega Mining (2012/2013) ii DOCUMENT CONTROL Revision History and Distribution Disclaimer This report has been prepared in partial fulfilment of the requirements for the degree of Master of Engineering Management at the University of Canterbury (UC) in Christchurch New Zealand. It is intended for use by Kumba Iron Ore Ltd. A copy of the report will be submitted to UC and the report will be made available to Kumba Iron Ore Ltd on the condition that the author, supervisor and the University will have no legal responsibility for statements or recommendations made therein. If Kumba Iron Ore Ltd intends to rely solely on the contents of this report or to implement its recommendations it must do so solely in reliance on its own  judgement. Version Date Prepared by Reviewed by Distribution Draft 1.0 24 January 2013 Erik Loots Erik Loots - Draft 1.1 28 January 2013 Erik Loots Piet Kamfer Piet Kamfer Version 1.0 30 January 2013 Erik Loots Piet Beukman Piet Beukman Version 1.1 6 February 2013 Erik Loots Piet Beukman Piet Kamfer    Erik Loots | HME Management in Mega Mining (2012/2013) iii HOW TO USE THIS REPORT This report contains a “Main Report” and eight investigations in the form of self standing reports contained in six different appendices. The “Main Report” is written specifically for management personnel who are time poor and will not be able to read the detailed reports contained in the appendices. The “Mini Reports” in the appendices contain the detailed findings, methodologies and discussions for each investigation and can be consulted when more information is required concerning a specific investigation.    Erik Loots | HME Management in Mega Mining (2012/2013) iv EXECUTIVE SUMMARY In order to optimise heavy mining equipment (HME) efficiency, three factors must be considered. These factors are independent of each other under normal operation condition but combine to give overall HME efficiency or overall equipment efficiency (OEE) as shown in Figure 1:  Figure 1: Factors crucial to OEE or efficient utilization of overall HME capacity This suggests that improving any of these factors by 1% should improve the OEE at Sishen by approximately 1%. As they are independent, increasing a specific factor should not adversely affect other factors under normal conditions. It was determined that decreasing the average cycle time at Sishen by 1% increases the profit that Sishen makes by approximately R250 million per annum. Various field studies and data analyses followed a series of initial investigations that identified eight areas that were to be investigated; these areas, what they primarily influence and how this influences OEE is shown in Table 1:  Table 1: Summary of areas investigated and how they influence OEE Primary Influence Main Area Affected Holding Position of Dump Trucks  Spotting Times Cycle Times Double Sided Loading  Spotting Times Cycle Times Pre-Spotting (Single Sided Loading)  Spotting Times Cycle Times Benchmarking Operators  Loading and Hauling Times Cycle Times SAP (Maintenance data) Maintenance Availability Utilization Air Conditioning Systems  Maintenance Availability Utilization Night Shift Maintenance  Availability and Use of Availability Utilization Payloads n/a Payloads Utilization Payloads Cycle Times Product of “Maintenance Availability” and “Use of Availability”  Haul Truck Cycle Times Haul Truck Payloads
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