13th March 2006 - Asset Management in the Quarrying Industry
On 13th March 2006 the West of England Branch held a Technical Evening at the Mendip House Hotel, Frome. The presentation on Asset Management in the Quarrying Industry was given by Nick Learoyd, Plant Services Director for Alfred McAlpine Business Services Ltd.
Alfred McAlpine is one of the country's leading facilities management and temporary accommodation service providers. In particular they provide tailored solutions to meet specific customer requirements within the Quarrying, Landfill and Bulk Materials Handling sectors as well as major Civil Engineering Construction sites throughout the UK.
The talk focused on the key issues involved when making the decision to consider outsourcing specific operations in any business;
Improving management focus, enabling concentration on core business and Value Added Activities.
Operational savings through innovative optimisation. The opportunity to change significant sections of the operation at the same time, rather than replacing single pieces of plant as and when they become obsolete. This enables the operator to match production capabilities and to maximise efficiencies.
Risk reduction, with guaranteed production targets giving certainty of cost to an agreed budget.
Impact on balance sheet. Easing cash flow and taking out the capital outlay needed to maintain the business, to leave a single monthly known payment.
Maximising resources for Expansion and Acquisitions.
Access to price benefits of increased purchasing power.
Tax efficiency.
Access to national infrastructure support and to a wider range of equipment.
Realisation of significant benefits on return on capital employed.
TUPE requirements.
Some processes that can be outsourced include; overburden stripping, drilling and blasting, secondary breaking, load and haul, crushing, screening, washing, loading for outsales, surveying, restoration and reclamation.
Partnering with the necessary credentials for Safety management system OHSAS 18001, Quality management system ISO 9001 and Environmental Management System ISO 14001.
The above principles were illustrated using a case study from a site that had an annual target of 1,000,000 tonnes and had been using 15 items of mobile plant to carry out the necessary handling and processing. These had been replaced with 10 new items of mobile plant that conformed to modern safety and environmental standards, which had delivered improvements in efficiency and reduction in costs.
This subject proved to be a very popular and was attended by 48 members and associates of the branch, who participated in a lively question and answer session.
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