Iron ore/Coal mining information

[Former Member]

Hi All,

Could you please share information on the following regarding iron ore/coal mining?

1. Supply chain activities involved and how they can be handled in SAP.

2. Whether mining industry uses repetitive manufacturing?

3. What would be typical BOM and routing structure?

4. How by-products are managed?

5. How quantity of produced are measured and valued (How the costing of mining activities is done)?

6. KPI's involved in mining.

Thanks & Regards

Sreedhar A

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[pratik_soni]

Hi Shreedhar,

Regarding your first question i found one document which explains about Iron Ore Mining and SAP Solution. Please find its link below;

http://scn.sap.com/people/keshavamurthy.dasappa/blog/2009/03/11/iron-ore-mining--business-process-sa...

regarding other questions i am not sure so have not replied on it may be you will be able to get the best answers from other experts in this community.

Hope this will be helpful to you

[pratik_soni · Accepted solution]

Hi Shreedhar,

I have tried to answer your other questions but i doubt whether i have covered every aspects of your questions correctly especially Q2,3,4, and 5. i would be grateful if anybody points out any thing in my answer as incorrect or incomplete.

Q2 Whether mining industry uses repetitive manufacturing?

Actually Mining Industry does not use pure repetitive manufacturing. It use mix of Repetitive Manufacturing and Process Manufacturing. The Primary Mining and Processing is more of Repetitive type as it is driven by Geological Model rather than customer demand. On the other hand Secondary or tertiary processing like Metal refining and Smelting are more of Process/Batch manufacturing type as they are driven by Customer demands.some important links are given below.

http://scn.sap.com/thread/1699265

http://scn.sap.com/thread/3243068

Q3 What would be typical BOM and routing structure?

I tried to find BOM and routing structure but not able to find it exact as I

thought. However I have found some material related to it for which I have provided some links below may be it will be helpful to you.

http://scn.sap.com/thread/1699265

http://help.sap.com/saap/sap_bp/BBLibrary/HTML/142_ERP606_EN_AU.htm

http://help.sap.com/saap/sap_bp/BBLibrary/HTML/146_ERP606_EN_AU.htm

Q4 How by-products are managed?

By Products are managed depending on the significance of their value. If the value are insignificant they are treated as by product but if its value are significant they are treated as co product. The difference is that The costs for co-products are calculated using the apportionment method, and those for by-products are calculated using the net realizable-value method. Please visit following link to know how they are treated in SAP system.

http://help.sap.com/saphelp_46c/helpdata/en/7e/cb854743a311d189ee0000e81ddfac/content.htm

http://scn.sap.com/thread/948075

Q5 How quantity of produced are measured and valued (How the costing of mining activities is done)?

The quantity of produced are generally measured and valued batch wise because in the characteristics of the produced goods may change on each batch for more details see the SAP Best practice Scenario 398 and D50.

http://help.sap.com/bp_bm604/BBLibrary/HTML/398_EN_US.htm

http://help.sap.com/bp_bm604/BBLibrary/HTML/398_EN_US.htm

Q6 KPI's involved in mining.

Production:

1. Stoppages / Production Loss (Reason e.g. Rain –“Top 10 problems”)
2. Scheduled vsNon Scheduled Stoppages
3. Block Cu. M.s (BCM’s) and/or Hours per shift / site / pit / month / annum
4. Equipment Hrs.
5. Blasting (kg’s)
6. Loads / Shift
7. m Drilled
8. Actual cost history (feed back to tender process)
9. Labour costs
10. % adherence to schedule
11. Production “efficiencies”

Maintenance:

1. Breakdowns / Reason –“Top 10 problems”
2. Scheduled vsNon Scheduled Maintenance
3. Breakdowns per shift / site / pit / month / annum / equipment type
4. Component history
5. Equipment Life Cycle Costing
6. “Hierarchies of breakdowns”
7. Labour costs
8. MRO costs
9. MTTR / MTBR etc.
10. % adherence to maintenance plan
11. Maintenance “efficiencies”

Stores:

1. Fuel QA
2. Fuel / Lube on hand
3. MRO spares on hand

Occupational Health, Safety & Incident/Accident Management

1. Incidence Rate (Per 100 FTEs)
2. Lost Time Incident Ratio

Capital Investment Management & Decommissioning

1. Return On Capital Employed

Demand Planning

1. Demand, Supply Planning Costs
2. Forecast Accuracy

Service Procurement

1. Accounts Payable Turnover Ratio
2. Percentage of suppliers getting shared forecasts (Supplier Collaboration)
3. Supplier Service Level

Supply Network Balancing

1. Detailed Schedule Creation Time
2. Distribution Costs

Transportation Management

1. Delivery Performance to Scheduled Commit Date
2. Transportation Costs
3. Transportation Costs as a % of Order Management Costs
4. Transportation Cycle Time

Please note: all KPIs are collected from following SAP presentations related to Mining.

1. SAP for Mining Operational Efficiencies by Nikhil Chaturvedi in SAP World Tour-Indonesia, Jakarta
2. SAP Solution Map 2007 power point presentation.

[i cannot able not found the exact link of the resource so just named it ]

Hope this will be helpful to you!

Regards,

Pratik