{"id":7100,"date":"2016-09-26T17:18:09","date_gmt":"2016-09-26T17:18:09","guid":{"rendered":"http:\/\/minutes.machine.market\/?p=7100"},"modified":"2016-09-26T17:18:09","modified_gmt":"2016-09-26T17:18:09","slug":"in-a-soft-mining-market-cat-execs-focus-on-technology-rd-and-lowering-total-cost-of-ownership-for-customers","status":"publish","type":"post","link":"https:\/\/machine.market\/blog\/in-a-soft-mining-market-cat-execs-focus-on-technology-rd-and-lowering-total-cost-of-ownership-for-customers\/","title":{"rendered":"In a soft mining market, Cat execs focus on technology R&D and lowering total cost of ownership for customers"},"content":{"rendered":"

In a marked departure from talking about yellow iron, Caterpillar<\/a> will focus on \u00a0technology\u00a0and corporate and\u00a0dealer site support at MINExpo<\/a> (booth 6229) and in the marketplace. As the mining industry continues to languish in a\u00a0longest-lasting slump, the manufacturer has responded by focusing less on on new product introductions and more on how to upgrade existing equipment to improve total cost of ownership (TCO).<\/p>\n

\u201cWe\u2019re in an\u00a0environment that is very competitive and very challenging,\u201d says Denise Johnson, Caterpillar group president\u00a0for\u00a0Resources Industries. She notes that current business conditions\u00a0have sparked changes to the company\u2019s approach to the market. \u201cWe are looking ahead and translating our actions in ways that will make us more relevant to the market.\u201d<\/p><\/blockquote>\n

Aggregates Manager<\/a> reports, while this led to the company\u2019s exit from the room and pillar mining and track drill markets \u2013 along with the closure of some facilities \u2013 it has also\u00a0enabled the manufacturer to\u00a0focus its resources on other aspects of its product portfolio and to boost its investment in research and development. Cat remains committed to the mining market, Johnson stresses, emphasizing, \u201cWe believe in mining for the long run.\u201d<\/p>\n

\u201cThe challenge of leadership is how to manage taking the appropriate steps when you\u2019re in a down cycle,\u201d notes\u00a0Tom Bluth, Cat vice president for Surface Mining and Technology. The goal\u00a0is to help customers now while continuing to prepare for the future. \u201cWe\u2019re pivoting,\u201d he adds. \u201cWe are putting energy into increasing efficiency of existing fleets.\u201d<\/p><\/blockquote>\n

\u201cWe felt it was important for us to focus our resources on the other aspects of our product portfolio and invest in our research and development,\u201d Johnson says. \u201cWe will outpace our competitors in R&D investment. We are being more intentional and focused in that arena. The largest percentage\u00a0of our R&D is in digital. We are planning to win in this space.\u201d<\/p>\n

Technology<\/h2>\n

Cat is leveraging\u00a0its robust experience in data capture and analysis to help it shape the next evolution. Unlike the automobile industry, where automation begins with certain key features and continues to evolve, Caterpillar is working that theory in reverse. \u201cWe created the fully autonomous truck and are starting to unbundle it,\u201d says Jim Hawkins, mining technology director.<\/p>\n

\n
\"Operators

Operators can operate dozer from a remote location using Cat Command.<\/p><\/div>\n

<\/div>\n<\/div>\n

Cat Command technology allows for options ranging from remote control systems for dozing and underground to semi-autonomous systems for drilling, dozing, and underground to autonomous for hauling, drilling, and underground equipment.<\/p>\n

Hauling automation\u00a0was put to the test at Fortescue Metals Group\u2019s Solomon Hub operation in western Australia. There a fleet of 47 Cat 793F trucks uses\u00a0Command for Hauling. Cat says the site is the largest autonomous mine in the world with the largest autonomous fleet at one site. Improved process consistency led to a 20-percent production increase over manned trucks. The fleet now handles more than 70 percent of production haulage at the mine.<\/p>\n

\u201cWhen it comes to software, there\u2019s no better way than working with the customers at their sites,\u201d Hawkins says. \u201cWe are a far more agile company in the area of technology than we ever have been in the past and will continue to become more agile in the future.\u201d<\/p>\n

\n
\"A

A display inside the cab can show objects in what could otherwise be blind spots.<\/p><\/div>\n

<\/div>\n<\/div>\n

Technology is also at work to improve process control for tasks such as truck spotting, while scaled technology offerings are available in underground loading; surface drilling, loading, and grading; and fleet management. Detection systems include brand agnostic object detection systems, proximity awareness technology, and driver fatigue management.<\/p>\n

While production is certainly a high priority, automation is also yielding big improvements in terms of site safety. \u201cWe have seen an order of magnitude of improvement on accidents and near misses,\u201d Hawkins says.<\/p>\n

Total cost of ownership<\/h2>\n

Another part of Cat\u2019s strategy to improve efficiency is getting closer to its customers. The company has partnered with the University of Arizona to create a 12-month executive level mining curriculum to ensure its graduates know mining from a practical viewpoint rather than simply viewing the industry from a behind-the-desk perspective.<\/p>\n

\u201cThis isn\u2019t a one-shot deal. It will be ongoing,\u201d says Steve Berkebile, director of surface mining. \u201cWe view these jobs as key development jobs for future leaders at Cat Global.\u201d<\/p>\n

Corporate employees will be trained to function as site performance managers who can work alongside dealer site managers to work through critical issues at an operation.<\/p>\n

Johnson says site performance managers\u00a0will be measured by the metrics of the mines themselves. \u201cOur success is measured by the success of our customers,\u201d she explains. Key performance indicators\u00a0such as uptime and production will determine\u00a0how site managers are rewarded.<\/p>\n

Bluth described a scenario where site managers could work like\u00a0\u201cgroups of SWAT teams we can parachute in for six to eight weeks for various projects.\u201d<\/p>\n

By blending\u00a0technology advancements, domain\u00a0expertise, and site-specific expertise when needed, Cat hopes to create an additional value stream for its customers. The push-pull dynamic created by operators\u00a0who are pressured on the cost side, coupled with lower technology costs make\u00a0Cat\u2019s timing logical.\u00a0\u201cIt\u2019s not technology for technology\u2019s sake,\u201d Bluth explains, \u201cbut what it can do for a customer\u2019s bottom line.\u201d<\/p>\n

Therese Dunphy<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In a marked departure from talking about yellow iron, Caterpillar will focus on \u00a0technology\u00a0and corporate and\u00a0dealer site support at MINExpo (booth 6229) and in the marketplace. As the mining industry continues to languish in a\u00a0longest-lasting slump, the manufacturer has responded by focusing less on on new product introductions and more on how to upgrade existing […]<\/p>\n","protected":false},"author":1,"featured_media":7101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":""},"categories":[2,8,9],"tags":[260],"yoast_head":"\nIn a soft mining market, Cat execs focus on technology R&D and lowering total cost of ownership for customers - MachineMarket Blog<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cranemarket.com\/blog\/in-a-soft-mining-market-cat-execs-focus-on-technology-rd-and-lowering-total-cost-of-ownership-for-customers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In a soft mining market, Cat execs focus on technology R&D and lowering total cost of ownership for customers - MachineMarket Blog\" \/>\n<meta property=\"og:description\" content=\"In a marked departure from talking about yellow iron, Caterpillar will focus on \u00a0technology\u00a0and corporate and\u00a0dealer site support at MINExpo (booth 6229) and in the marketplace. 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