Goonyella%20Coal%20Chain

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• Goonyella Coal Chain
• Integrated Planning Group
• Mine Update
• March 2006

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Presentation Overview

• GCC Improvement Program Status
• Key Coal Chain Concepts
• Integrated Planning Process
• Changes seen by the Mines
• Integrated Planning Communication

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GCC Status

• Goonyella Coal Chain Improvement Group (GCCIP) is
  transitioning over to
• the Coal Planning Steering Group (CPSG) with
  stakeholder representation
• from
• Babcock Brown Infrastructure
• QR Network Access
• QRNational
• DBCT Pty Ltd
• DBCT User Representative
• BMA
• This group will provide strategic direction for
  the Integrated Planning Group
• (previously known as the GCCIP project working
  party.)
• QR Network Access will chair and facilitate this
  group.

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GCC Status
CPSG top down strategy Providing the strategic
direction for IPG
GCCIP Strategy Feeding information up, focus on
operational level
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GCC Status

• The Integrated Planning Group has representation
  from the following stakeholders
• DBCT Team Lead representative Dan Flynn
• QRNational Team Lead representative Mario
  Chetcuti
• QR Network Access Team Lead representative Mark
  Henrich
• DBCT User Mine representative Greg Stevens
• BMA is representing their port and mines through
  Jeff Edwards.
• Industry have agreed that QRNA will facilitate
  the integrated planning function on
• behalf of the coal chain.

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GCC Status
Handover at April meeting
First Meeting May
CPSG
IPG
Name change in line with official launch of CPSG
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Why Integrated Planning?

• To maximise system throughput by a coordinated,
  transparent approach to
• identifying and implementing improvements
• reducing system variability and loss
• building strategic Infrastructure Plans
• planning process
• planned maintenance
• communications and information flow

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Why Integrated Planning?

• In 2009/10 throughout required to be in the order
  of 135 - 140 mtpa
• If we continue operating under the same
  processes, the variability will still exist and
  cause throughput loss.
• Opportunity to reduce system loss by
  understanding the system in detail, installing
  rigid planning and operational processes and
  measuring the outcomes
• Solution capital expenditure on coal chain
  infrastructure AND new operating mode to maximise
  throughput (integrated planning approach)
  including reducing variability

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Goonyella Coal Chain Defined
Pit Operations
ROM transport, wash plant etc
Mine Stockpile
End Users
Port Stockpiles and Outloading
Mine Train Loadout
Rail Transportation
Port Inloading
Shipping Stem
Mine Loadout to Vessel Hatch
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Key Concepts

• The Coal Supply Chain
• Demand Systems Pull and push
• Planning Horizons

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The Coal Supply Chain
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The Coal Supply Chain
Demand Vessel ETA Tonnage Load Point
Supply Coal Availability Capability
Statements Load Point

Critical Asset Capability Maintenance
Outages Upgrade and commissioning plans


Available System Throughput This and knowledge
of system variability become the basis for
Planning eg when you are getting your trains and
when your ship will be loaded
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Demand Systems

• Supply chain management systems fall into three
  categories Push, Pull or a hybrid push/pull
• While a push system process depends on forecast
  demand, a pull system starts from actual demand -
  the customers order, and uses some types of
  just-in-time processes eg rapid cargo assembly.
• Generally, push systems require larger volumes of
  inventory as production may not necessarily match
  Demand in the short medium term
• A pull system operates with minimal inventory and
  requires an order to commence supply
• Push/pull systems typically have a mix of the
  above options

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Pull System - DBCT

• DBCT operates a pull system from the mines
• DBCT throughput and stockpile capacity together
  with its multi-user status requires a cargo
  assembly, pull system
• A vessel nomination and associated parcel
  definition (ie tonnes and load point) starts the
  planning process
• Each vessel cargo is built into discrete
  components at the correct quality
• Limited stockpile space means high throughput is
  achieved by low stockpile residence time
• No Vessels No Trains

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Pull System - DBCT

• Pull system may have some effect on Mine Product
  stockpiles
• Faster cargo assembly will increase the mean time
  between stock offtakes.
• Peak stockpile levels may be higher than historic
• Impact low if the vessel arrival pattern is smooth

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??? System - HPS
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Planning Horizons

• The new Integrated Planning process will be
  undertaken across three planning horizons
• Long Term Planning - a rolling monthly plan
  covering months 5 24 from the current day of
  operation
• Tactical Planning - a rolling weekly plan
  covering weeks 3 17 from the current day of
  operation
• Operational Planning - a rolling daily plan
  covering 0 14 days from the current day of
  operation which includes a detailed 0 - 48 hour
  schedule component

• The Tactical and Long Term planning processes
  will focus on highlighting and resolving
  imbalances between demand, mine supply and
  available capacity
• The Operational planning process will focus on
  reducing the current system variability and
  maximising coal chain throughput by using more
  accurate and timely vessel and mine product
  availability information to drive coal chain
  plans

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Integrated Planning Timeframe

• TO BE ADVISED

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Stabilisation

• Reducing variability within the coal chain
  requires
• Information that is accurate, timely and
  transparent
• Processes are currently being built to allow
  information flow and detail to improve
• Robust processes
• For example, if a train is cancelled what process
  is always followed to ensure loss to the system
  is minimised
• A detailed understanding of each link in the
  chain
• For example, a load point or port unload system
  needs to have a defined capability that can be
  the basis for scheduling

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Stabilisation a mine perspective

• The coal loading plan needs definition

• A Load Point Capability Statement is to be built
  and will contain the data vital for planning eg
  planned load times, recharge allowance between
  trains, allowances for coal type changes
• The Load Point Capability Statement will be
  reviewed regularly with the Operator.
• The more accurate the data, the more likely
  trains will arrive, load, depart and unload at
  the planned time. This means
• Loss is minimised
• Process is measurable
• Opportunities are identifiable

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Stabilisation a mine perspective

• Train consists will be standardised to
• 20 x 9,600 tonne trains
• 1 x 9,000 tonne train
• MineTrak is being updated to facilitate
  information flows
• For example - Advice when parcel will be
  available for railing
• HPS ?????

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Long Term / Tactical Planning

• Highlighting and resolving imbalances between
  demand, supply and available capacity
• The Long Term/Tactical Forum will be achieve this
  through implementation of
• Critical Asset Register
• Critical activity calendar
• Coordinated Planning
• Capacity Management
• Utilising contract, marketing and shipping
  forecasts
• Simplistic capacity determination
• Long term planning time amounts months
• Tactical planning time amounts weeks
• Business Rules

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Operational Planning

• Coordinate information, share information and
  planning on
• Mine forecasts
• Critical Asset Calender
• Shipping arrivals/orders
• Berthing Plan
• Yard plan
• Rail scheduling
• Operational Planning Time amounts days
• Business rules

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Operational Planning Horizon
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Operational Planning Horizon
HPS Version ???
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Day of Operations

• Execution of plan focusing on running ..
• Loading trains
• Railing
• Unloading
• Stockpiling
• Shiploading
• .. And recovering to plan using
• Business rules
• Recovery Plan
• Information transparency
• Plan will be in the form of a 48 hour schedule

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Key Changes for Mines

• Long Term and Tactical Planning Horizons
• Provision and maintenance of Critical Asset
  Register and Calender information
• Available system capacity can be defined with
  sufficient notification to enable demand to align
• Any interruption to capability (coal flow or
  maintenance) of a critical asset MUST go through
  the Integrated Planning Process
• Provision of Demand information
• Capacity balancing will be undertaken monthly for
  the 524 month horizon and weekly for the 317
  week horizon Assessment of demand and supply
  together with Maintenance alignment using a
  simple capacity analysis tool

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Key Changes for Mines

• Operational Planning Horizon
• DBCT berthing plans will look out 14 days instead
  of the current 7 days and will drive the planning
  and scheduling of the DBCT stockyard and the rail
  network
• Hay Point demand will be in the form of inloading
  request by sequence at the pits.
• Operational plans and schedules will be updated
  and communicated to all stakeholders on a daily
  basis
• Emergency, essential and opportunity maintenance
  requirements will be communicated to all relevant
  stakeholders
• Mines will confirm coal is on the ground and
  ready for loading onto trains a minimum of 24 hrs
  prior to any 48 hour schedule in which trains are
  to be run to the mine
• Minimising coal supply variability
• Consistent sequencing of trains to align with
  requirements of yard and berthing schedule
• A detailed berthing, yard and rail schedule will
  be defined by Plan at 48 hours from execution and
  will be made visible to all stakeholders
• Train configurations will be standardised across
  the system 90 x 106 t 30 x 90t (9600 t)

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Key Changes for Mines

• Performance
• Performance framework currently under
  construction
• Framework intent to focus on stabilisation then
  improvement measureable KPIs to allow
  systematic improvement
• Ports, trains, track and mines will be measured
  and reported on
• Performance
• Information quality and timeliness

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Business Rules - Mines

• Any work planned on a critical asset, as defined
  in the critical asset register, must be
  communicated in line with the integrated planning
  process to eliminate the possibility of unknown
  activities impacting on coal chain performance
• Planned maintenance will be locked in at 21
  days or more depending on the lead time. No
  further changes may be made to planned durations
  or start dates within this lock down period
• All significant, planned maintenance, asset
  upgrades and asset commissioning activities will
  be submitted at least 12 months out from the
  current day of operation. Changes to planned
  durations and start dates may occur until the
  greater of the 21 day lock down or planning lead
  time is reached

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Business Rules - Mines

• If DBCT does not receive parcel, vessel and mine
  information at specified times or it is altered,
  the vessel will cede berthing priority until
  these requirements are met
• Parcel assembly plans must be agreed 7 days out
  from vessel ETA
• 24 hours ahead of any 48 hour rail schedule, all
  mines will need to confirm the availability of
  coal on the ground and the readiness to load all
  trains which will be run in that 48 hour schedule
  
• Further business rules will be developed during
  operating plan design across all planning
• horizons.
• Recovery Plan is to be developed in conjunction
  with internal operational stakeholders.

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IP Communications

• GCC Web Portal
• Common interface for stakeholders to view
  performance, plans, meeting agenda's, minutes,
  and timetables
• Web site is secure and open to GCC nominated
  stakeholders only (administered)
• During IP implementation, regular updates will be
  forwarded to nominated site representatives and
  posted to the web portal
• Regular forums will enable additional information
  flow
• Long term/Tactical forum
• SOMM

Web Portal View ?
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IP Project Implementation

• Stabilisation approximately 15 May 2006
  (Operational Planning, DOO, business rules,
  recovery plan)
• Leading up to the 15th, operating plans, recovery
  plan and business rules will be workshopped.
• Long Term Tactical planning progressing with
  processes rolling out
• Training supply chain package under development
• IT systems (information sharing). GCC web portal
  under development

Slide 18 or here
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IPG Objective Maximise throughput whilst
maintaining service levels