Asset Performance Programs & Collaboration …...Asset Performance Programs & Collaboration Models...
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Asset Performance Programs & Collaboration Models for Productive Mining - Cases from Swedish Mining Industry
Transcript of Asset Performance Programs & Collaboration …...Asset Performance Programs & Collaboration Models...
Asset Performance Programs & Collaboration Models for Productive Mining - Cases from Swedish Mining Industry
Agenda
• Introduction to Jonas Kemi and SKF
• How do asset performance improvement programs impact
mining productivity?
• Are alternative ways of customer/supplier collaboration an
innovative approach for the mining need?
• Challenges and possibilities with performance based
collaboration
© SKF Group
A world of reliable rotation
SKF vision
© SKF Group
• Established 1907
• Sales 2018 SEK 85,713 million
• Employees 44,428
• Manufacturing units 94
• SKF presence 130 countries
• Distributors/dealers 17,000 locations
• Global certificates ISO 9001 – Quality
ISO 14001 – Environment
ISO 50001 – Energy
OHSAS 18001 – Health and safety
SKF – a truly global company
© SKF Group
SKF technology areas
Bearings
and units
Seals Services Lubrication
systems
Our solutions are everywhere
© SKF Group
Two value propositions
Rotating equipment
performance
Product
How do asset performance improvement
programs impact mining productivity?
20%
70%
5%
Technical availability = 95%
Cleanliness and
Proper order
Condition Monitoring
Level 1
General
maint.
CM 2
Lubrication
+
FUAU
Service agreements
Functional agreements
Partnership
LKAB
Maintenance department
LKAB
Operators
The Maintenance Jig-Saw Puzzle
© SKF Group
The potential for asset performance
improvement is depending of base line (todays
performance) and type of operation and assets.
I will give two real-life examples showing the
result of improved asset performance.
The project was running
for >5 years, was divided
in to 40 sub projects and
involved every aspect of
maintenance.
The LKAB Maintenance Campaign
© SKF Group
The result of the project was a
increase in production output by 15 %
without any major investments in new
production equipment.
The LKAB Maintenance Campaign
© SKF Group
The other example is from an
ongoing PdM contract where
SKF take care of all advanced
condition monitoring for a
mining company.
Cleanliness and
Proper order
Condition Monitoring
Level 1
General
maint.
CM 2
Lubrication
FUAU
Mining PdM Contract
© SKF Group
In the contract SKF guarantee to
show documented savings for
the customer on a minimum of
ten times the value of the
contract every year.
Mining PdM Contract
© SKF Group
Are alternative ways of customer/supplier
collaboration an innovative approach for the
mining need?
© SKF Group
Outsourcing Inhouse
© SKF Group
R&D
Mine Planning
Mining and
Transportation
Ore Processing
Out Put
20%
70%
5%
Technical availability = 95%
Cleanliness and
Proper order
Condition Monitoring
Level 1
General
maint.
CM 2
Lubrication
+
FUAU
Service agreements
Functional agreements
Partnership
LKAB
Maintenance department
LKAB
Operators
The Maintenance Jig-Saw Puzzle
© SKF Group
Price is tip of the iceberg
Maintenance costs
Purchase costs
Warehouse costs
Production loss
Energy costs
© SKF Group
Price is tip of the iceberg
Maintenance
costs
Purchase costs
Warehouse
costs
Production loss
Energy costs
+ = ?
© SKF Group
To combine the Outsourcing/In-house balance
and need to reduce TCO we have a number of
projects where we collaborate with the customer
in alternative ways.
These collaborations is always:
1) based on specific customer needs.
2) focused on creating and follow up the value
of the collaboration (“performance-based”).
© SKF Group
+ = ?
Based on specific
customer needs + Performance based
collaboration = Partnership
© SKF Group
Cooperation model/levels
Customer value
Transactional / Traditional Integrated
Day to day
transactions
+Long Term
Agreements
+KPIs to improve
+All inclusive
Traditional
Service Agreements
Performance based
Functional guarantee
© SKF Group
Challenges and possibilities with performance
based collaboration
© SKF Group
The possibilities for performance-based
collaboration is “endless”.
But…..
© SKF Group
Do not “overuse” performance-based
collaborations.
© SKF Group
To have a successful performance-based
collaboration there has to be a high level
of mutual trust between customer and
supplier.
© SKF Group
Do not try to be too smart when it
comes to what KPI:s to use in
measuring the success of the
collaboration.
© SKF Group
Do not confuse performance-
based collaboration with
performance based pricing.
© SKF Group
State in the legal agreements
what KPI:s to use and how
these should be measured
and followed-up.
© SKF Group
Always use performance-based
pricing in a positive manner.
Low fixed fee plus bonus rather
than “penalty”.
© SKF Group
1) Decide on what is the core of your business. What is creating value and
should be areas where you should have “world-class” competencies you self.
2) Get help with performing assessments to figure out in which areas the major
potential is for your specific operations.
3) Use the two points above to choose areas to focus on and decide to in what
degree you should invest in in-house competencies and in what degree to
trust in partnership with suppliers.
How to get there….
Thank you!
