Improving Reliability, Cost & Safety with Fluid Power Systems

"RELIABILITY & SAFETY – TOGETHER. REALLY? I was starkly reminded of the challenges facing by the coal industry while talking with a number of senior mining executives. One said to me: “Safety is the #1 priority in our organization but of course, dollars are very, very important!!!” A coal mine worker at the Bluefield Coal Show claimed: “We know our equipment is bleeding hydraulic fluid all over the place but all that matters is getting the coal out”. We all understand. We want our people to go home safely at the end of the day but the coal industry is bleeding – fluids, dollars and real blood. An issue getting plenty of buzz these days is equipment reliability – in mining too! Achieving an optimal return from the massive investments in equipment is a critical requirement for success within a capital intensive industry like coal mining. You can cut costs by scrimping on maintenance, scavenging used parts and downsizing. Or, you can save money by being smarter with your asset management processes. Can we afford to spend money on both safety and reliability? Is one more important than the other? Many leading edge companies from a variety of industries will tell you that you can’t just cost-cut your way to profitability - or even survival. You need to systematically improve the effectiveness of your business. Do reliability and safety both have a place in improving the performance of the coal industry? According to Ron Moore, of The RM Group, the answer is emphatically YES! Ron says: “If you believe in safety, then you MUST believe in reliability and, more importantly, have the appropriate policies, systems, practices and measures in place. If you want lower costs, you must get your processes right. Simple cost cutting will remove resources from your system without changing the underlying system design, and performance will likely deteriorate.” Figure 1 shows the 5+ year results of a large manufacturing company. When plants are running well (high Asset Utilization), then injuries are less likely. Figure 2 plots data from a number of manufacturing plants. If you want sustainably lower costs get your reliability processes right. But these are manufacturing companies, not coal mining operations! It doesn’t matter. The fundamentals still apply. Mining industry thought leaders tell us that manufacturing is 20-30 years ahead of us and we need to learn from them – and do so quickly. Leading companies, no matter the industry, think in terms of operational excellence. They see this as the meshing of people, process and technology to achieve optimal results. Safety and reliability go hand-in-hand. People and equipment are different – but only to the extent that each requires its own relevant, but related, policies, practices, systems and metrics to achieve effective performance."