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Simulate shows faster cycle gains

THE Simulate software product development by RungePincockMinarco gives more evidence that parts of the mining industry are prepared to break the shackles of conservatism and caution that have dogged past efforts to drive innovation. <b>By Richard Roberts</b>

Staff Reporter
Simulate shows faster cycle gains

Industry conservatism runs deep in Europe and it is there Australia-based RPM got together with a major equipment manufacturer about nine months ago to talk about a new way to present compelling fleet sales value arguments.

RPM was getting traction for a new simulation product called Haulsim, while the equipment data engine Talpac, totemic of fleet productivity analysis in the industry for 30 years, was well known to equipment suppliers since its data on the performance of their machines helped underpin its effectiveness for so long.

“We said to the OEM that we worked with at the start, you’ve got some great ideas, we’ve got some great ideas, we’ll work with you, but on the basis that what we produce is a commercial off-the-shelf product,” RPM’s Denver-based executive general manager for enterprise solutions, Craig Halliday said in the wake of Simulate’s launch.

“They said, that’s fine because we’ll have first-mover advantage and the platform lets us focus on developing our product IP rather than bespoke software development, delivering far more value to our company.”

Now, as RPM continues discussions with surface and underground mining equipment original equipment makers about using Simulate, the co-developer, which has not been identified, is working through its global deployment rollout.

The product seems set to be adopted in some form or other by the world’s top mining equipment suppliers, potentially providing a multi-million-dollar boost to Australian Securities Exchange-listed RPM, which is also an international mining-advisory service group.

RPM has invested millions in development of new software, including simulation products and enterprise versions of its popular desktop lines.

Traditionally long innovation cycles in mining led to some of the company’s “point solutions” developing over decades. The wheel is turning faster now as both miners and suppliers see technology as a competitive counterpoint.

RPM partnered with US-based FlexSim Software Products on development of Haulsim, for modelling fleet equipment changes, then bought FlexSim’s simulation software IP. It describes Haulsim as a “true 3D discrete event simulation product” that simulates equipment interactions and infrastructure as well as standard haul cycles.

RPM has already sold the product to Rio Tinto, Anglo America, Modular Mining, Glencore, Newcrest Mining, Iluka Resources and others.

Most big miners and contractors are using Talpac and its equipment database of more than 500 types of trucks, 400 loaders, scrapers, and underground equipment that is updated regularly with data direct from OEMs but remains an independent data source.

“Combining Talpac knowledge with FlexSim capabilities enabled us to look at the whole haulage system holistically,” Halliday said.

“We were able to take a deep dive in looking at how decisions relating to any element of the haulage equation affected other areas, which is something that in the past involved complicated mathematics and science and was always one step too far for people to get to. Challenging that paradigm is where our unique value proposition lies.”

Halliday said Simulate combined key elements of RPM’s Talpac, Haulnet, and Haulsim into a “single, highly visual and enterprise-enabled application” that allowed OEMs to use customer data to rapidly model their entire mining operations and then accurately demonstrate the resulting financial value their equipment and services could provide.

He said the platform enabled an OEM to model complex, 3D mining environments using their own mining equipment.

The initial OEM collaboration let RPM come up with a product that protected a supplier’s essential IP while performing the required simulations.

“That was useful to us, because if that was a concern to them it would have been a concern to any other OEM that wanted to buy this platform,” Halliday said.

“The enterprise-enablement is also important to the OEMs. One of the key things that came out of our first deployment is the OEM in question really wanted to be able to deliver a standard approach to marketing their solutions across their global dealer network.

“They wanted the ability to leverage the strong value propositions they already had and ensure that instances of inaccurate discounted cash flow calculations weren’t conflicting with the messaging the clients were already receiving, and nor did we. We don’t want the product to be misused.

“With this in mind, OEMs have the ability to standardise the way their IP is utilised through the platform and maximise the value this can provide across their organisations and wider dealer networks.

“Hooking this [simulator] into the enterprise level … basically explodes the number of ways that people can simulate things in a mine. The OEMs are interested in this, but they and others are also interested in bringing fleet management system data into it and all sorts of other things.

“We believe we are onto something special and we need to take it step by step because there is any number of things you can simulate in a mine and it’s a fantastic environment, but you have to make sure that what you’re doing is useful and adding value to the miners.”

Halliday said enterprise enablement gave equipment suppliers the ability to adopt a standard approach to client engagement across a global distribution network.

“And that goes well beyond selling equipment these days,” he said.

“Making the right equipment selections at the start is important, but as the equipment goes into operation so is getting the most out of it, maintaining it, optimising the integration of other new equipment, sweating the assets, and so on. The OEM is looking to become a partner with the mine in all these ways, and more.”

Halliday said Haulsim was being used by underground and surface mine operators and contractors, and he expected Simulate to also be used by underground equipment makers and suppliers.

“We think Simulate will become the sales tools of choice for the world’s major OEMs,” he said.

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