Maintenance and Repair Contract(MARC)(MARC)Víctor Barrientos

CAP MINERIA – Cerro Negro Norte

Index

1.- Introduction

2.- Methodology

3.- Results

1.- Introduction

3.- Results

4.- Conclusions

Maintenance and repair contract (MARC)

The MARC are maintenance contracts with the equipment

manufacturer which include guaranteed availability and…….

� Cost per Hours (CPH)

Here comes the customer question of…..

� ¿ It is a fair and reasonable price?

� ¿ Where can you get it?

80

100

120

140

160

180

200

Cost per Hour (CPH)

US

D /

ho

ur

0

20

40

60

80

0 - 6 6 - 12 12 - 18 18 - 24 24 - 30 30 - 36 36 - 42 42 - 58 48 - 54 54 - 60

x 1.000 hour

US

D /

80

100

120

140

160

180

200

Cost per Hour (CPH)

US

D /

ho

ur

Change of major

component

0

20

40

60

80

0 - 6 6 - 12 12 - 18 18 - 24 24 - 30 30 - 36 36 - 42 42 - 58 48 - 54 54 - 60

x 1.000 hour

US

D /

Cost per Hour (CPH)

The methodology is developed to respond questions and provide

and important tool to mining companies to make a decision

� Provide information necessary to conduct a negotiation

process with the equipment manufacturerprocess with the equipment manufacturer

� Baseline in case you can use own maintenance or mixed

maintenance (external/internal service)

Index

1.- Introduction

2.- Methodology

3.- Results

2.- Methodology

3.- Results

4.- Conclusions

Knowledge management

This methodology proposes in some stages the information from

the manufacturer of the equipment

The realization of an interrelation corresponding to integration

of information that includes an enrichment of information withof information that includes an enrichment of information with

values, points of view and experience

Step Description Knowledge management

1 Equipment model definition Information

2 Parts, operation and maintenance manual Informaction

3 Disassembly of major and minor componets (60 to 100 item) Information + interrelation=

Knowledge

4 Costs and frequency of change of new components Information

5 Costs and frequency of change of repair components Information + interrelation =

Knowledge

6 Replacement strategy for each disassembly (step 3) Information + interrelation =

Knowledge

7 Review of duplicity of costs by sub-components Information + interrelation =

Knowledge

8 Cost per hour (CPH) Information

9 Sum of cost per hour (CPH) Information

Index

1.- Introduction

2.- Methodology

3.- Results3.- Results3.- Results

4.- Conclusions

3.- Results

2,0

3,0

4,0

5,0

Economic

proposal MARC

Expenses accumulated as a function of operating hoursM

illi

on

so

f d

oll

ars

0,0

1,0

2,0

0 - 6 6 - 12 12 - 18 18 - 24 24 - 30 30 - 36 36 - 42 42 - 58 48 - 54 54 - 60

x 1.000 hour

Mil

lio

ns

2,0

3,0

4,0

5,0

Economic

proposal MARC

Expenses accumulated as a function of operating hoursM

illi

on

so

f d

oll

ars

Methodology

0,0

1,0

2,0

0 - 6 6 - 12 12 - 18 18 - 24 24 - 30 30 - 36 36 - 42 42 - 58 48 - 54 54 - 60

x 1.000 hour

Mil

lio

ns

2,0

3,0

4,0

5,0

Economic

proposal MARC

Expenses accumulated as a function of operating hoursM

illi

on

so

f d

oll

ars

Methodology

0,5 a 0,8

Millions

0,0

1,0

2,0

0 - 6 6 - 12 12 - 18 18 - 24 24 - 30 30 - 36 36 - 42 42 - 58 48 - 54 54 - 60

x 1.000 hour

Mil

lio

ns

Cost per hour

(CPH) MARC

Methodology

(Step 1 to 9)

Evaluation period 10 years

Loader Wxx Base line + 0,6 %

Loader 9xx Base line + 8,7 %

Difference between proposed methodology and MARC

Electric truck Base line - 4,7 %

Mechanical truck 7xx Base line + 8,9 %

Evaluating the methodology for 2 models of equipment of 2 different

brands, this is considered to have a difference between – 5% to + 10%

which is considered reasonable as an estimate

Index

1.- Introduction

2.- Methodology

3.- Results3.- Results

4.- Conclusions4.- Conclusions

Benefits

� It allows obtaining information from the equipment to make a

better technical-economic evaluation

� Captures the experience of the experts in equipment

� It allows to tabulate the expenses by changes of components

in detail form allowing a better projection

� To know if the cost per hour (CPH) is appropiate to the

equipment

Requirements

� To have the right staff who can be able to share experiences,

different points of views. Moreover, make relationship

between information and knowledge

¿Questions?¿Questions?