Komatsu 7th GTI

Reduce Down Time on 930E fleet in AJL coal

mine

Li Guohui Komatsu (China) Mining Ltd. Product Spport Section Service Department 2012-3-2

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Agenda

1 、 Background of AJL Coal Mine2 、 Introduction of Komatsu (China) Mining Ltd3 、 Availability review of 32 x930E fleet4 、 Machine down time analysis and action （ GENBA ）5 、 Future action plan

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1 、 Background of AJL Coal Mine

China coal is one of biggest customer for KCML.KCMLhave been committed to the customer first.Support the customer and keep Komatsu machine high availability.So how to reduce machine downtime is very improtant and urgent!

ATB Coal Mine

East Coal Mine

AJL Coal Mine

China Coal Ping Shuo Coal Co.Ltd.

Komatsu 7th GTI2 、 Introduction of Komatsu (China) Mining Ltd. /(KCML)

Established: Sept.2010Total SS, 8 and Staff, 93Average experiece:1.98 yrs.Machine population:595 units - 332 Dump trucks - 263 Construction machines

Established: Sept.2010Total SS, 8 and Staff, 93Average experiece:1.98 yrs.Machine population:595 units - 332 Dump trucks - 263 Construction machines

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ShengLi SSDatang SSM/P:51

Zhungeer SS

M/P:135

Pingshuo SS

M/P:262

Dexing SSM/P:61

Baotou SSM/P:12

Huolinhe SS

M/P:58

Beijing HQ

Chengmshan SS

M/P:12

KCRC 44PRebuild Center

Parts warehous

e

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2-1 、 Organization Chart of KCML Product Support Div.

Customer support and SS supportQuality control and operation Service system operation

Customer support and SS supportQuality control and operation Service system operation

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3 、 Availability of 32 x930E in AJL for the period of Jan. 2011 to Dec. 2011

Year

Warranty condtion

Fleet avaibility target

Unit avaibility target

1Standard warranty

92% 90%

2Extended warranty

90% 88%

3KCML(Target)

　 88% 85%

32 units 930E’s Contract Availability Review (the last unit delivered in Dec.2009 )

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4 、 Machine Down Time Analysis Through KCML Monthly Report

Engine is the biggest factor of downtime

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4-1 、 What is the problem on the engine and Why? Identify potential root causes for engine down time using fishbone diagram （ draft)- hypothesis

QualityTool & facility

Repair

Parts Operator Maintena

nce

Cold start

Sudden stop

Local parts

Parts error

Lack of facility

Experience

Speed control

Lack of inspection tools

No standby and stock

Accident Lead

timeOil

Coolant

Environment

Not On time

Air

Manpower

Assemble

FC issue

Design

Material

Management

Troubleshooting

No place

Lack of tester

Engine breakdown

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4-2 、 Engine Down Time Analysis(Jan.2011-Jul.2011)

CustomerNo.of Dump Truck

Customer CEBJ / Cummins

TotalNew

Rebuilt

Under OV On Ship New Rebuilt Under OV On Ship

PingShuo (ATB/AJL/East mine)

90 2 16 　 2 2 - 　 3 25

Standby engine situation as of Jan.2012

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4-3 、 Engine Down Time Analysis(Aug.2011-Dec.2011) 1 、 The engines

have to overhaul based on machine operate hours （ 20000 Hours ） .2 、 What are the root causes for the long time needed for the engine to be removed and re- installed with standby engine?

Unschedule overhaul Schedule overhaul

Unschedule overhaul Schedule overhaul

8 units engine need to remove and reinstall

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4-4 、 Engine Replacement Process (GENBA) /Root Cause Analysis And ActionMachine 930E/A30598 Failiure date:2011-12-8Operating hour

19388

Subject Reason for engine overhaul: Metal chip found in oil pan and high SMR close to 20,000 hours.

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No. Finding

Process No.

Root Reason ActionResponsi

ble

Schedule

Aug

Sep

OctNov

Dec

JanFeb

Mar

1 Awaiting for engine mount

④ Lack of engine mount in jobsite

Increase one set engine mount by Cummins

Cummins Customer

　 　 　 　 　● 　 　 　

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Remove and re- install is longer

③⑤⑥ Unclear responsibility and lack of positivity

One face meeting to clarify responsibility and prevent process delay

Customer Cummins KCML

●　 　 ●

　 　 ●　 　 ○ ○

50% of Downtime can be Reduced

-24 -70 -6-12

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4-5 、 Machine Troubleshooting Process (GENBA) Root Cause Analysis And ActionMachine 930E/A30653 Failure date: 2011-8-24Operate hour

15500

Subject Engine with abnormal noise, LH #4 air valve drop off and damaged and cylinder head damaged

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③ ④ ⑥ ⑦⑤②① ⑧-24 -24 -46 -14-54 58% of

Downtime can be reduced

No. Finding

Process No

Root Reason

Action Responsible

Schedule

Aug

Sep

OctNov

Dec

JanFeb

Mar

1 Awaiting for related equipment

⑤⑦ No plan for repair job

Make plan and prepared equipment in the advance

Cummins Customer

　 ● 　● 　

○　 ○

2

Troubleshooting and remove &intall is longer

②③⑥

Lack of positivity and experience

To clarify responsibility by monthly meeting and special training

Customer Cummins KCML

　 　 ●　

●　

●　 　 ● ○

Provide 2 sets of INSITE software

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4-6 、 Appendix

According as customer experience and knowledge Remove and install Reasonable hours in AJLcoal mine:84Hours

Item (Productivity ) #1 -930E/A30598 #2 -930E/A30653Actual downtime Hours

225 278

Reasonable downtime Hours

113 116

Unreasonable hours 225-113=112 278-116=162Trip/Hours 3 3Production loss (Tone)

290x3x112/1.8x6=9,022T 290x3x162/1.8x6=13,050T

Average Profit Ton USD/T

12.3 (2011Y) 　　 12.3 (2011Y)

Profit loss(Estimation)

110,970 USD 160,515 USD

4-6-2 、 Estimated profit loss from machine Downtimes

Note:Density/1.8Coal:OB/1:6Exchange rate/1:6.4

4-6-1 、 Standard Labor Hours From Cummins

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5 、 Future Action Plan In order to ensure the 930Ex 32 units fleet availability of more than 90% and keeping a good relationship with Customer to increase the customer satisfaction the following activities are needed and will be monitored.

No Action Purpose Responsible Schedule

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Weekly comunication and planning with customer‘s maintenance management

Understanding Job task •Site Mgr.•Planner•Cummins

Every week from Jan.2012

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Provide each Machine inspection data to customer, Understanding machine status

identify problems and recommend to prepare the related equipment for optimization of the facilities.

•Planner•Cummins•Customer

Every month from Mar.2012

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Provide customer with the machine downtime report for improvement to minimize down time.

Identify problems and improvement through case study

•Planner&Mgr.•Customer•Cummins

Anytime

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Komatsu ICT system(EQP 、 Web care etc.) support to customer

Forecasting and reduce down time and shorten parts lead time

•KCML Service Dep.•Planner

Anytime

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Appendix

1 、 Improvement point by KCRC Support2 、 China Coal 930E Engine OV Plan / Progress3 、 Mechanical & maintance training by Cummins4 、 Improvement point by Care Project 5 、 Planner

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1 、 Improvement point by KCRC Support

Front view

Disassemble

Inspection

Assemble Testing

KCRC Expansion Project

Reduce 930E Down Time & Operating Cost,to schedule OV and Reduce unschedule failure AJL:1> 、 Alternator2> 、 Wheel motor/7units3> 、 Suspension

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　 　 　 　 　 　　 2009

Result2010-2011/7

Result

2011 Plan 2012 Plan

　 　 　 　 　 　 Aug Sep Oct Nov Dec Jan Feb Mar

　 　 　 　 　 　 CEBJ OV Capacity （ PS) - - 6 8 8 8 8 8 8 8

　 　 　 　 　 　 No. of Swing Eng.Ready for Use

- - 4 4 4 4 4 4 4 4

　 　 　 　 　 　 OV Plan (20000h) - 0 3 3 3 4 4 4 4 4

　 　 　 　 　 　 No. of OV executed

(AJL)

Scheduled OV 0 0 0 　 0 　 　 1 0 3 　 　 　　 　 　 　 　 　 Unscheduled OV 0 7 0 0 　 3 　 1 　 4 　 0 　 　 　　 　 　 　 　 　 Total 0 7 0 0 3 2 4 3 0 0

Truck Chasis Latest SMR Latest DateOriginal

ESN1st COSMR

1st CODate

Sch/Usch

2ndESN

EstimatedEngine Hrs As of Today

Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

9341 A30533 10,800 2011-05-31 33168354 　 　 　 　 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,8009342 A30580 11,549 2011-05-31 33168349 　 　 　 　 11,549 11,549 11,549 11,549 11,549 11,549 11,549 11,549 11,5499343 A30617 11,545 2011-05-31 33168352 　 　 　 　 11,545 11,545 11,545 11,545 11,545 11,545 11,545 11,545 11,5459344 A30645 12,407 2011-05-31 33171794 11,019 2011-03-12 Usch 33167575 1,388 1,388 1,388 1,388 1,388 1,388 1,388 1,388 1,3889345 A30646 14,754 2011-05-31 33171820 　 　 　 　 14,754 14,754 14,754 14,754 14,754 14,754 14,754 14,754 14,7549346 A30649 14,318 2011-05-31 33171823 　 　 　 　 14,318 14,318 14,318 14,318 14,318 14,318 14,318 14,318 14,3189347 A30653 13,736 2011-05-31 33171980 5,957 2010-04-20 Usch 33169971 7,779 7,779 7,779 7,779 7,779 7,779 7,779 7,779 7,7799348 A30656 14,731 2011-05-31 33172036 　 　 　 　 14,731 14,731 14,731 14,731 14,731 14,731 14,731 14,731 14,7319349 A30597 15,965 2011-05-31 33170286 　 　 　 　 15,965 15,965 15,965 15,965 15,965 15,965 15,965 15,965 15,9659350 A30612 14,182 2011-05-31 33170711 　 　 　 　 14,182 14,182 14,182 14,182 14,182 14,182 14,182 14,182 14,1829351 A30616 15,111 2011-05-31 33170999 　 　 　 　 15,111 15,111 15,111 15,111 15,111 15,111 15,111 15,111 15,1119352 A30619 14,924 2011-05-31 33171157 　 　 　 　 14,924 14,924 14,924 14,924 14,924 14,924 14,924 14,924 14,9249353 A30622 15,423 2011-05-31 33171288 　 　 　 　 15,423 15,423 15,423 15,423 15,423 15,423 15,423 15,423 15,4239354 A30624 15,735 2011-05-31 33171612 　 　 　 　 15,735 15,735 15,735 15,735 15,735 15,735 15,735 15,735 15,7359355 A30640 15,335 2011-05-31 33171608 　 　 　 　 15,335 15,335 15,335 15,335 15,335 15,335 15,335 15,335 15,3359356 A30642 16,070 2011-05-31 33171627 7,485 2010-01-04 Usch 33173193 8,585 8,585 8,585 8,585 8,585 8,585 8,585 8,585 8,5859357 A30579 17,389 2011-05-31 33170053 　 　 　 　 17,389 17,389 17,389 17,389 17,389 17,389 17,389 17,389 17,3899358 A30594 17,599 2011-05-31 33170455 　 　 　 　 17,599 17,599 17,599 17,599 17,599 17,599 17,599 17,599 17,5999359 A30595 16,545 2011-05-31 33170080 12,628 2010-11-13 Usch 33173195 3,917 3,917 3,917 3,917 3,917 3,917 3,917 3,917 3,9179360 A30596 16,200 2011-05-31 33170456 　 　 　 　 16,200 16,200 16,200 16,200 16,200 16,200 16,200 16,200 16,2009361 A30623 17,618 2011-05-31 33171492 　 　 　 　 17,618 17,618 17,618 17,618 17,618 17,618 17,618 17,618 17,6189362 A30598 16,570 2011-05-31 33170617 14,133 2011-01-28 Usch 33169019 2,437 2,437 2,437 2,437 2,437 2,437 2,437 2,437 2,4379363 A30610 17,170 2011-05-31 33170615 　 　 　 　 17,170 17,170 17,170 17,170 17,170 17,170 17,170 17,170 17,1709364 A30611 15,031 2011-05-31 33170661 14,435 2011-04-24 Usch 33164910 596 596 596 596 596 596 596 596 5969365 A30484 17,893 2011-05-31 33166262 　 　 　 　 17,893 17,893 17,893 17,893 17,893 17,893 17,893 17,893 17,8939366 A30485 17,160 2011-05-31 33165960 16,056 2011-04-01 Usch 33171980 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,1049367 A30486 17,722 2011-05-31 33166281 18,994 2011-07-24 Usch 33165980 -1,272 -1,272 -1,272 -1,272 -1,272 -1,272 -1,272 -1,272 -1,2729368 A30487 17,851 2011-05-31 33166181 　 　 　 　 17,851 17,851 17,851 17,851 17,851 17,851 17,851 17,851 17,8519369 A30490 18,002 2011-05-31 33166095 　 　 　 　 18,002 18,002 18,002 18,002 18,002 18,002 18,002 18,002 18,0029370 A30491 18,801 2011-05-31 33166844 20,716 2011-09-19 Sch 33167030 -1,915 -1,915 -1,915 -1,915 -1,915 -1,915 -1,915 -1,915 -1,9159371 A30492 17,500 2011-05-31 33166838 　 　 　 　 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,5009372 A30493 17,938 2011-05-31 33166806 　 　 　 　 17,938 17,938 17,938 17,938 17,938 17,938 17,938 17,938 17,938

China Coal 930E Engine OV Plan / Progress

Sch OV Plan

Sch OV done

Unsch OV done

2 、 China Coal 930E Engine OV Plan / Progress

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3 、 Mechanical & maintance training by Cummins No 　 Training Date ATB AJL DLT -

Technician

OperatorMid Class Manager

1

Maintenance(A,B,C Check)

Training

Projected Completion Date

20-May-11 21-May-11 22-May-11

Actual Completion Date

21-May-11 21-May-11 21-May-11

2Operation Training

Projected Completion Date

17-Oct-11 17-Oct-11 17-Oct-11 　

Actual Completion Date

　 　 　

3Coolant Training

Projected Completion Date

20 –May-11

20 May.2011

20 May.2011

Actual Completion

Date20 –May-

1120

May.201120

May.2011

4Oil and Oil Analysis Training

Projected Completion Date

17-Oct-11 17-Oct-11 17-Oct-11

Actual Completion Date

　 　 　

5Insite

Training

Projected Completion Date

18-Oct-11 18-Oct-11 18-Oct-11 　 　

Actual Completion Date

　 　 　

6Troubleshooting Onhand

Training

Projected Completion Date

From May to the end of this year, totally eight persons

　 　Actual Completion

Date　 　 　

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10

20

30

40

50

60

70

80

SMR VHMS Data Downt i me Component OV

Before Now

1 、 AJL Basic information collect unit2 、 Machines down hours analysis3 、 Machines health Monitoring

Before Apr.2011 Now

Machine Downtime

VHMS Data

OV Record

SMR

Only report SMR of warranty machines

Make major failure report of warranty machines

No major component change out record

Monthly report SMR of allOperation machines

Record all downtime data for important model

Follow all major componentChange out history

Lack of operation machines informationNo plan for major component overhaulParts lead time was long

Have more machines operation informationMake major component overhaul forecastingReduce machines down time by scheduledOV and shorten parts lead time

R+M Care EQP Care

Web Care

4 、 Improvement point by Care Project

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Web Care

R+M Care

EQP Care

KOPEN

Initialization and registration of newly delivered machines into KOMTRAX+.

KOMTRAX+ data download and upload to WebCARE. (Daily/Weekly)

Monitor machine health condition and register to Backlog sheet if any abnormalities.

Receive machines downtime information from customer.

Type downtime and usage data up to template sheet and upload to R+Mcare, as well as weekly downtime sheet

Analysis of machine downtime reason using R+M Care and weekly downtime sheet

Obtain machine SMR & major component change-out history from customer.

Report machine SMR & component change-out history to HQ service department

Monitoring & scheduling component OV and advise to SS manager

Registration & management of Backlogs using Backlog Management sheet.

Advise to Parts Key Person to order the necessary parts & component.

Timely open & close work order

Daily

Monthly

Monthly

Daily

To monitor trend data for OV timing optimization

To find and report some abnormalities timely

To forecast major component OV timing

To find machine downtime reasons and take action for improvement

Update SS parts & component stock condition

Report Customer’s parts & component stock condition to HQ parts Dept

Forecast parts consumption in SS

System

Check machine performance timely (Availability/Utilization/ MTBF/MTTR)

Scope of Work Purpose

To prepare adequate parts & component

To complete all the job in timely manner

Control and manage work order in progress

Advise to customer for component OV schedule

Advise to customer for customer’s parts & component stock.

Conduct SS team to do the proactive job for preventing catastrophic failure

SS Manager

Planner

Parts Foreman

Transparency of Stock Condition Suggest to customer

their own parts stockage

5 、 Planner’s “Scope of Work”

To accumulate machines usage for business plan

To order necessary parts for SS timely

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