Fleet Management Innovation – The Future for

Indonesian Mining
Geoff Tasi – 12 April 2018
 The Challenge – Maximising Truck Hours

• The challenge for Indonesian

miners and contractors is –
how to maximise truck work
hours by minimising delays
– Rainfall and recovery has major
impact
– Impact from unplanned
maintenance
– Internal operational delays:
• Shift changes - how to change
operators and not lose hours

• Meal and pray times - keeping the

machine going but providing
breaks for employees

• Queuing - monitoring excavators

to ensure it is not over/under
trucked

• Refuelling - ensuring times do not

impact production
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 The Opportunity – Fleet Management System

• Digitally transforms your

mining operations to real-time
production control system:
– Maximises fleet utilisation

– Optimises truck assignments - the right

trucks to the right excavators at the
right time

– Provides ‘real-time’ data, enabling real

time decisions to be made on trucking
fleet, refuelling, hot seating and shift
changes

– Tracks material movement accurately

and load and haul mass balance

– Provides detailed reporting – minute by

minute review of the overall fleet
performance

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 Fleet Management System Adds Value

• Managing large equipment fleets is too complex to do manually

• In an industry where 1% is a significant cost saving, real-time

decisions are required to improve performance

• Keeping tight control on trucking (the single largest cost of an

operation) is critical to improving profitability

• Provides measurable data, removing opinions from a conversation

• Fleet management system can improve truck productivity by

approximately 5-10% within the first year of implementation

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 Using Data to Measure Performance

• Fleet management systems

capture a large amount of data

• The following measures are

recommended to focus on:
– Excavator hang time - how long is the
excavator waiting per truck
– Excavator loading time – how long is
the excavator loading a truck
– Excavator bucket passes – how many
passes to load a truck
– Truck queuing time - how long is the
truck waiting to be loaded
– Truck speed - where are the trucks
having to slow down due to poor roads
– Shift changes or meal breaks - how
much time is lost
– Fuel times - how long is the truck
queuing to be re-fuelled
– Lost truck hours – due to no operator,
mechanical downtime or no work
available
– Measure individual units productivity to
understand operator skills

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 System Challenges - Training and People

• Fleet management systems require business

investment

• Trained dispatchers are critical to their success

• Operators need to be trained how to use on-board

devices accurately to ensure the system knows their
status

• Technicians must be available to ensure network,

communications and field hardware are operating
effectively

• Supervisors will need to liaise with dispatchers to

ensure trucking is optimised

• Mine planners will need to ensure material tracking,

and load and haul mass balance is in accordance to
the mine plan
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 System Challenges – Network Infrastructure

• Good network and

communications is the backbone
of a sound fleet management
system

• These requires a site wide TCP/IP

network for communication, in the
form of WIFI or 4G/LTE

• Hardware is purpose built and has

proven success within the mining
industry

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 Key learnings for success

• Educate and socialise your workforce before introducing a new

system – the team need to understand ‘why’ this is being
implemented

• Dispatchers are critical – sharp tech savvy people are required to

understand how the system works

• Dispatching can be a high stress job - rosters and rotations must be

planned to manage fatigue

• Technicians need to be well trained with access to spare parts, tools

and equipment to effectively attend to field issues

• Maximise the utilisation of system’s algorithms for optimised truck

assignment (open dispatching)
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 Innovation

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 When Innovation Makes Sense

Overcome challenges
• The coal sector in Indonesia is
changing rapidly
• CV is dropping
• Road haulage distances to the rivers
are increasing
• Barging distances to the sea are
increasing
• The coal price is cyclical (starting to
trend down)

Deliver real-time solutions

• Operation and maintenance innovation
needs to demonstrate a tangible benefit
• It must improve fleet utilisation by
reducing lost hours from rain,
maintenance delays and internal
manageable delays
• Data collected needs to be transformed
to knowledge – information for
management to make decisions to
improve business performance

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 The Future – Autonomous Trucks in Indonesia

• Autonomous trucks are a step change in

the mining industry

• Autonomy replaces the role of an

operator replaced by on-board control
algorithms

• Fully autonomous trucks do not require

any operator interaction

• Trucks operate within ideal operational

parameters during all conditions

• Internationally, the focus of autonomous

trucks has been on 240T or larger trucks

• In regions where the labour cost is high

and the operating environment stable
operations have reported higher
operating hours and lower maintenance
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costs
 Will Autonomy Work for Indonesian Mines?

• Labour cost competitiveness may limit the

initial progress of autonomous trucks

• High-cost implementation for smaller 100-

150t trucks may not be economically viable

• High rainfall may impact the ability of

autonomous trucks to be effective in
slippery conditions

• The rapid advancement of technology

means autonomy will continue becoming
more attractive

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 Biggest Challenge – Lost Hours Due to Rain

• Indonesian coal mines rarely have access to hard rock to proactively make
all-weather overburden haul roads

• Research shows that 1,500-2,000 hours are lost per overburden truck load
annually to wet weather delays

• This delay can reduce the cost per tonne of coal by $3-5/t (10:1 mine)
• OEM’s have shown limited interest in undertaking this challenge using
technology

• It appears, clients and contractors need to drive a technology focus to

improve the cost structure of the Indonesian mining industry

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 Final Thought

• Each piece of mining equipment operates for approx. 4,500-5,500

hours annually

• Between 3260-4260 workable hours are lost per machine each year

• We need to find solution to close that gap and must ask ourselves -
how can innovation realise this opportunity?

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 Thank you

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