Capital Equipment News August 2018

For informed decision-making AUGUST 2018

SDLG – Reliability in Action

AFTERMARKET SUPPORT: Maximising equipment value through service

SERVICES THE FUTURE OF SERVICE. PAGE 20

CRUSHING – PART 1: Optimising crushing gains

WHEEL LOADERS: Behind the driveline

SDLG – RELIABILITY IN ACTION

construction news 46 Construction and mining equipment sales rise 46 Quick coupler systems and attachments from Liebherr mining NEWS 47 Drones optimise surveying and safety at Kumba's operations transport & logistics news 49 Proactive cost management Thought leadership – Construction 50 Is construction ready for intelligent automation? Thought leadership – Fuel costs 52 How to keep your fuel costs down cover 4 SDLG – Reliabiliy in action crushing 8 Optimising crushing gains aftermarket support 14 Maximising equipment value through service services 20 The future of service wheel loaders 24 Behind the driveline TCO & Uptime 28 Addressing crucial operational parameters Materials handling 32 Accurate forklift metrics right at fingertips Asset financing 36 Taking a business approach to asset financing CONTENTS Capital Equipment News is published monthly by Crown Publications Editor: Munesu Shoko capnews@crown.co.za Advertising manager: Elmarie Stonell elmaries@crown.co.za Design: Anoonashe Shumba Publisher: Karen Grant Deputy publisher: Wilhelm du Plessis Circulation: Karen Smith PO Box 140 Bedfordview 2008 Tel: (011) 622-4770 Fax: (011) 615-6108 www.crown.co.za Printed by Tandym Print The views expressed in this publication are not necessarily those of the editor or the publisher. FEATURES REGULARS Total circulation Q1 2018: 4 136

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EDITOR'S COMMENT

JOINING HANDS TO HELP TOOL UPCOMING CONTRACTORS

T hat there is renewed focus on growing small, medium and micro enterprises (SMMEs) in South Africa is no overstatement. Government has prioritised entrepreneurship and the advancement of SMMEs as the catalyst to achieving economic growth. SMMEs are recognised as the building blocks of the country and, without their contribution, sustainable

growth cannot be achieved. For example, the vigour to drive SMME development in the construction contracting fraternity is very apparent, with the infrastructure project roll out programme very much designed to favour small and upcoming contractors. While construction contracts are modelled to promote upcoming contractors, challenges still abound for them, ranging from non-experience to lack of financial clout to purchase the equipment they need to execute the contracts. Year after year, upcoming contractors list access to funding as one of their most formidable concerns facing the future of their businesses. In most cases, small businesses are denied loans because of their limited operating history and low gross margins, among other factors. The truth of the matter is that often banks, especially in challenging economic times, have their appetite for risk at its lowest. It is encouraging to see that there are several role players in the industry working together to help close the financing gap for upcoming contractors. The approach is informed by the desire to see small businesses expand, and allow firms to take part in projects that will increase their competitiveness. A case in point is Sanral and Bell Equipment’s recent partnership to help tool upcoming road contractors. The national roads agency and the OEM recently signed a Memorandum of Understanding that will give CIDB-graded contractors access to earthmoving machinery which will enable them to participate more meaningfully in major construction projects. As part of the initiative, black-owned CIDB-graded contractors will now get access to finance,

leasing and rental options, training and maintenance services. The initiative is based on the understanding that awarding young contractors jobs without helping tool them is not sufficient for them to become serious competitors in such a fiercely contested industry. Both Sanral and Bell understand that access to various types of equipment used in construction remains the biggest hurdle facing start-up companies. I also recently attended an event where Regoapele Capital, an enterprise and supplier development partner to Glencore Lydenburg Smelter, handed over yellow metal equipment worth R8,5-million to a 100% black woman-owned company, Sicediwe, based in rural Lydenburg. Getting Sicediwe into business took concerted efforts from several role players, including Glencore (contract owner), equipment suppliers, Regoapele Capital and Masisizane Fund (the financier). Glencore and Regoapele Capital played a leading role in helping Mary Mkhabela, the owner of Sicediwe, get the necessary funding from Masisizane Fund to buy the equipment she needed to fulfil her metal breaking contract at Glencore Lydenburg Smelter. Their role was to prove to the financier that, despite the fact that the company had very limited operating history and low gross margins, it had secured a three-year contract which could give it a clean break into the industry, provided it got the necessary funding to get the equipment it needs to do the job. I believe that in future it is these sort of collaborative efforts and interventions that will ensure the viable growth and empowerment of emerging contractors.

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS AUGUST 2018 2

COVER STORY

SDLG – RELIABILITY IN ACTION SDLG customers in southern Africa can look forward to increased ‘reliability in action’ the OEM promises following Babcock’s introduction of three new models – the B877F backhoe loader, G9220 VHP motor grader and L958F wheel loader – benefitting from radical feature upgrades compared with their predecessors, writes Munesu Shoko .

T he popularity of the SDLG brand has increased sharply since its entry into southern Africa. According to Grant Sheppard, regional manager Export Region – Equipment at Babcock, a key pillar of the growth in popularity is the marked improvement in quality of products. However, behind every good product is great service. The growth of the brand also largely hinges on the backup support from Babcock. “Customers in southern Africa have developed a lot of trust in the brand, thanks to the machines’ improved quality and reliability over the years, complemented by the excellent aftermarket support provided by Babcock,” he says. Testimony to the continued improvement of the product is the recently launched range of machines, comprising the B877F backhoe loader, the G9220 VHP motor grader and the L958F wheel loader. They all benefit from massive feature upgrades, resulting in a mix of increased productivity and reliability at affordable prices. B877F in detail Leading the pack on Babcock’s arrival lounge is the B877F backhoe loader, an upgrade of the

“Customers in southern Africa have developed a lot of trust in the brand, thanks to the machines’ improved quality and reliability over the years, complemented by the excellent aftermarket support provided by Babcock.”

Grant Sheppard, regional manager Export Region – Equipment at Babcock

“The Machine Blade Control System is controlled by hydraulic mechanical levers in the cab, meaning that the operator can swing the blade themselves if required. Moreover, the Dual Hydraulic Cylinders operate the Circle Turn, meaning that the operator can reposition the blade with load on, resulting in a smoother and more efficient grade.”

Craig Sanday, regional sales manager – Equipment at Babcock

TALKING POINTS

CAPITAL EQUIPMENT NEWS AUGUST 2018 4

previous B877. Half a tonne lighter than the B877, the B877F is an 8-t sideshift backhoe loader with a 1 m³ standard loader bucket and maximum lifting capacity of 3 224 kg. It comes with a new engine, increased cab space, enhanced cooling capacity, as well as a state-of-the-art loader linkage, among several other improvements. Sheppard says a key talking point is that the new backhoe loader benefits from several new feature upgrades, but comes at a very competitive price. In fact, it is the only machine in its price category that comes with an aircon as standard, says Sheppard. Craig Sanday, regional sales manager – Equipment at Babcock, says the B877F comes with an improved loader linkage system that provides better breakout force. “What’s more, the kinematics have been improved. It is now easier to anchor the machine when using the excavator bucket,” says Sanday. “It also offers better control of the excavator arm when repositioning, better stability and more efficient excavat- ing. It also features a 55-degree steering angle, providing greater manoeuvrability that is particularly advantageous when working in confined spaces.” Inside the machine, one of the biggest changes comes in the form of a new engine. The B877F is fitted with a 70 kW Yuchai motor featuring the same power as the machine’s previous engine, but with much higher torque. Access to the engine is made easier through a larger, rear-hinged engine hood. To make maintenance easier, the filters and water separator have been grouped in the motor compartment. The B877F has also been fitted with a larger radiator, with an ambient temperature of 50°C. The improved cooling capacity leads to better performance in hot climates. Operator comfort Gone are the days when buying decisions paid no attention to operator comfort. With SDLG’s understanding that a comfortable operator is a productive one, the B877F’s new, spacious cab provides the operator with greater visibility around the machine, as well as greater space for turning between the loader and excavator operating positions. The ergonomic cab also features a streamlined layout and design of the machine’s controls, a new handbrake design, and a new parking brake that is easier to operate and has better brake force. Additionally, the differential lock switch has been moved from the side panel to the floor, resulting in easier use for the operator. “The air conditioning has been improved for this model, too. Outlets from the ceiling provide 30% increased cooling capacity

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P R D N

Babcock has introduced three new SDLG machines that benefit from radical feature upgrades for improved productivity and reliability

An upgrade of the previous G9190, the G9220 motor grader provides an automatic mode of transmission, allowing operators to shift seamlessly between manual and automatic transmission

The B877F backhoe loader is an upgrade of the previous B877. It comes with a new engine, increased cab space, enhanced cooling capacity and loader linkage

A major talking point on the SDLG L958F wheel loader is the new SDLG VRT200 transmission, which offers an 8% increase in efficiency over the previous L Series model

CAPITAL EQUIPMENT NEWS AUGUST 2018 5

COVER STORY

slide bushings for better grading and easier maintenance,” explains Sanday. “The grader also features an asymmetric drawbar ball stud that can be rotated 180° to keep the drawbar in horizontal level position – vital when performing fine grading. L958F loads in Babcock has also introduced the new SDLG L958F, a 5,4 t wheel loader that ticks all the right boxes for fleet owners seeking a reliable, yet affordable machine that gets the better of re-handling duties in diverse applications, including quarries, agriculture and ports, among others. Launched late last year in southern Africa, the new wheel loader benefits from several new features over the previous L-Series, but with competitive pricing. Sheppard says the machine is designed to meet the demands for customers looking for a high-performing, reliable, easily operable and cost-effective wheel loader. A key feature upgrade is the new SDLG VRT200 transmission, which offers an 8% increase in comprehensive efficiency over the predecessor model. With four forward gears, four reverse gears and a large adjustment range of speed ratio, the new transmission gives full play to the engine power for improved fuel economy. The VRT200 transmission also benefits from an electro-hydraulic shift with functions of kick-down, power cut-off and shift interlock, making the gearshift stable. A ladder buffering design for the clutch improves shift stability. Maintenance is also convenient on the VRT200 compared with the 4WG200; not only can the transmission and transfer case be separated, but also contains an external pump for easy access. The new machine also features an improved axle design for added support. Whereas the rear drive axle on the L-Series is mounted to the auxiliary frame, the F-Series’ rear drive axles are mounted on the swing frame, offering larger oscillation and better stability and traction. The 6-cylinder, direct injection Weichai engine delivering 162 kW @ 2 200 rpm, is matched to the new SDLG transmission to deliver maximum torque from the engine to the wheels for greater fuel economy. With the operator in mind, the L958F benefits from a new larger cab with greater comfort and ergonomics. The larger cab design adds 20% more glazing for improved visibility, safety and operator efficiency. “Improved air conditioning has also been added for greater operator comfort, while the single joystick guarantees precise, easy and comfortable operation of the loader arm and bucket, reducing operator fatigue,” concludes Sheppard. b

The new L958F loader was officially introduced in the local market late last year.

Babcock has launched the new B877F backhoe loader in southern Africa.

and a 120% improvement in blowing speed than previous-generation machines. This results in faster cooling of the cab and a much more comfortable operator environment, particularly in the hot climates of Africa,” explains Sheppard. In addition, the new B877F comes with an extended 2-year/3 000-hour warranty, compared with the 1-year/2 000-hour on the previous B877. Since its local launch late last year, Sheppard says the B877F has had a good run of sales. A good example is the recent tender awarded to Babcock by the eThekwini Municipality to supply six units. “We have also been awarded another tender for 20 units by another key government stakeholder. We have already delivered the first nine units and the rest will be delivered as and when required,” says Sheppard, adding that several more units have also gone into export markets. G9220 grades in Launched in southern Africa during the first quarter of this year, the G9220 VHP (automatic variable horsepower) motor grader – with a 16 500 kg base operating weight, dozer blade width of 4 267 mm and a blade pull of 10 530 kg – is suited for most grading applications, from new construction or maintenance to ditching and slope scraping, pavement levelling and site preparation.

A major upgrade of the previous G9190, the G9220 provides an automatic mode of transmission, allowing operators to shift seamlessly between manual to automatic transmission. “This gives them greater control over the grading process, while optimising fuel efficiency,” says Sanday. Traditionally, there was no substitute for experience when it came to motor grader operation. The conventional motor grader controls of the past weren’t that simple to learn and often overawed new operators, but the G9220 makes that challenge a thing of the past. “The Machine Blade Control System (MBCS) is controlled by hydraulic mechanical levers in the cab, meaning that the operator can swing the blade themselves if required. Moreover, the Dual Hydraulic Cylinders operate the Circle Turn, meaning that the operator can reposition the blade with load on, resulting in a smoother and more efficient grade,” says Sanday. “The G9220 is fitted with a piston pump hydraulic system that always delivers the optimum oil flow to the hydraulic functions, regardless of engine speed. In this way, VHP allows the operator to concentrate on grading with greater precision for superior results, while the machine focuses on being more fuel efficient,” says Sanday. “The unique circle drive system comes with three support shoes and non-greasing

CAPITAL EQUIPMENT NEWS AUGUST 2018 6

CRUSHING – PART 1

Impact crushers can be classified as primary/ secondary crushers or secondary/tertiary crushers.

Optimising crushing gains Regarded as the main process in aggregate production, crushing is the first controlled size reduction stage and is the basis for optimal further size reduction. It is, therefore, important that when choosing a new rock crusher the first thing you need to know is which one best matches your material – and it is imperative to find the right one the first time, writes Munesu Shoko .

used in different end processes”. The primary objective of a crushing stage is size reduction, so having the correct crusher in the correct duty is essential for quality aggregate production,” he says. Sandro Scherf, CEO of Pilot Crushtec International, shares the same view, saying that the crushing stages are critical to achieving the right quantity and quality of aggregate products. “Similar to driving a vehicle, to reach top speed you need to go through various gears; in aggregate production, you need to go through various crushing stages. The number of crushing stages will vary depending on production requirements such as the quantity you need to produce and the specifications of the final product,” says Scherf. Dewald Janse van Rensburg, MD of B&E International, says by applying

B y tonnage, crushing is by far the largest process operation in aggregate processing. To execute the process cost-effectively, it’s always important to deploy the correct crusher for the ideal application. This not only saves you time, but it will also save you money in the long run. Just how important is crushing in the whole aggregate production equation? To reiterate the significance of the process, Heath Dickson, national mining sales manager at ELB Equipment, says “simply put, without crushing, in specification aggregate would not exist”. JD Singleton, process director at Weir Minerals Africa, says “size reduction in aggregate production is required to achieve the different product gradations

CAPITAL EQUIPMENT NEWS AUGUST 2018 8

The VSI plays a critical part in obtaining high specification road stone, or as a pre-milling crusher to increase mill throughput in mining applications.

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By tonnage, crushing is by far the largest process operation in aggregate processing

compressive strength to the strong and brittle natural rock types that serve as aggregate, crushing forms a vital and cost-effective part of the aggregate production process. “It allows us to reduce the particles to a required size under applied stress through one or more crushing stages in conjunction with screening to achieve the required specification of the final product,” he says. Van Rensburg adds that key aspects of designing and implementing a crushing circuit include, firstly, understanding as much as possible about the source material – such as the size of the rock entering the process, the hardness of the material and its abrasiveness. “Most importantly, the design must focus on exactly what output the customer requires – both in terms of particle size and

To execute the crushing process cost-effectively, it’s always important to deploy the correct crusher for the ideal application

Jaw crushers are typically used in a primary crushing station – to take the run of mine and produce a feed to the secondary cone crushers

The VSI plays a critical part in obtaining high specification road stone, or as a pre-milling crusher to increase mill throughput in mining applications

CAPITAL EQUIPMENT NEWS AUGUST 2018 9

CRUSHING – PART 1

TALKING POINTS

to the softest of sedimentary, the jaw crusher is a compression crusher that takes large primary material and reduces it to a manageable size for further crushing. In some cases, granulator jaw crushers can be used in secondary applications,” says Scherf. Van Rensburg says each customer’s application will be specific, so it is crucial to design and manufacture crushing plants with appropriately sized and staged equipment, as well as the right screening and other infrastructure, to suit the purpose. “This requires understanding a range of factors that might affect the crushing circuit; at B&E International, we are therefore able to work closely with customers not only on designing and building the plant but with a number of related services,” says Van Rensburg. “For instance, we can help find and approve a quarry site, and test the stone available. By assisting with blast design and practices we help gather the information required to arrive at the correct crushing plant application,” says Van Rensburg, adding that blasting techniques and fragmentation achieved together with throughput requirements will determine the size of the jaw crusher required. Pruewasser reasons that generally jaw crushers are provided for abrasive to very abrasive materials as primary crushers. Cone crushers are mainly used for abrasive to very abrasive materials as secondary crushers. Ravenscroft agrees, saying that a jaw is predominantly classified as a primary crusher, by virtue of being the first stage in the crushing process. “It caters for large feed size and a high production output, with a crushing ratio of 4/5:1,” says Ravenscroft. Secondary and tertiary crushing Singleton says jaw crushers are typically used in a primary crushing station – to take the run of mine (ROM) and produce a feed to the secondary cone crushers. “Cone crushers are used in secondary and tertiary crushing stages. The reduction per stage is typically between 3:1 and 4:1, depending on the application. A cone crusher can produce any aggregate size fraction you require, provided you stay within the required reduction ratios,” says Singleton. Scherf says while there are primary gyratory crushers (similar in operating principle to a cone crusher), cone crushers re generally used as secondary or tertiary crushers (with some exceptions such as in coal applications). “Cone crushers are also compression crushers and offer a

“Knowing the silica content or abrasion index of the feed material is critical in selecting not only the correct crusher, but also the correct wearing materials to ensure a profitable operation.”

Sandro Scherf, CEO of Pilot Crushtec International

“Knowing the geology of the material assists in specifying the correct crusher for the specific rock application. Further to this, knowing the product size distribution of the ROM allows the crusher to be spec’d correctly. Should there be a high fraction of fines in the feed ROM, pre-screens can be fitted to the jaw, cone and impact crushers.”

Tyron Ravenscroft, Finlay product manager at Bell Equipment

“Cone crushers are used in secondary and tertiary crushing stages. The reduction per stage is typically between 3:1 and 4:1, depending on the application. A cone crusher can produce any aggregate size fraction you require, provided you stay within the required reduction ratios.”

JD Singleton, process director at Weir Minerals Africa

volume of output in a specific timeframe. On the strength of these considerations, it can be decided whether the process must be single-stage or multi-stage, and the screening aspects can be designed aligned with this,” explains Van Rensburg. Tyron Ravenscroft, Finlay product manager at Bell Equipment, says without crushing, very little aggregate would be produced from purely using explosives to blast the natural rock. “Therefore, the crushing stage is a vital necessity to be able to produce high quality aggregates. However, screening the crushed material is just as important to be able to produce the different aggregate sizes, which then become a valuable and sellable product,” says Ravenscroft.

extremely high because the crushing stage influences the overall quality of the final product. He adds that the costs of processing are mainly dependent on the crushing system and the energy demand. Right crusher for the right application It is important to deploy the right crusher for the right application. There are different types of crushers available in the market, ranging from jaw to cone and impact crushers. Scherf says for the long- term profitability of any operation, it’s imperative to have the correct type and size of crusher in a correct application. He reasons that a jaw crusher is universally applicable in primary crushing applications and is used to reduce large material to a more manageable size. “From the hardest of granite or basalt,

Johann Pruewasser, engineer at Keestrack, says the importance is

CAPITAL EQUIPMENT NEWS AUGUST 2018 10

Geology matters Is geology a factor that determines the type of crusher to be deployed in an application? Singleton says crushers will work in most applications, and it only depends on how long it will last. “By doing proper applications and process engineering when you select the crusher and consider the duty, as well as the ore characteristics like solid specific gravity, abrasion index, bond work index, among other parameters, one will be able to achieve the required output no matter the geology,” he says. Dickson says the end result the client is looking for would determine what crusher gets deployed for the job. “Ideally you would not want to necessarily deploy an HSI into a high silica application, but if the client is looking to maximise the fines generation and understands the wear costs or rand per ton cost, this could be an option,” says Dickson, adding that capex vs tonnage can be a major factor when deciding what crusher to deploy. Ravenscroft is of the view that knowing the geology of the material is very important as materials react differently when under pressure or impact in the crushing chambers. “Knowing the geology of the material assists in specifying the correct crusher for the specific rock application. Further to this, knowing the product size distribution of the ROM allows the crusher to be spec’d correctly. Should there be a high fraction of fines in the feed ROM, pre-screens can be fitted to the jaw, cone and impact crushers,” he says. According to Scherf, in order to operate economically and safely, having the correct crusher for feed material is critical. For instance, in a coal application, using a cone crusher carries a very high risk of igniting the coal, due to the compression of the material in a small chamber. He is of the view that using an HSI

Trio jaw crushers for use in primary crushing.

greater ability to adjust your final product size and shape than a jaw crusher and operate at a lower cost per tonne than an impact crusher in hard or abrasive feeds,” says Scherf. Ravenscroft says a cone crusher is classified as a secondary and/ or tertiary crusher. “It further reduces the size of the rock at a 4/5:1 ratio and supplying desired end product sizes. Cone crushers can also supply a quality shaped product by using the crusher within its desired parameters and crushing ratios,” he says. When it comes to horizontal shaft impactors (HSI), Dickson says as long as the client understands the wear costs and ultimately the rand per ton cost to produce, there is a place for this type of crusher in most applications, especially demolition, recycling of asphalt and applications where the client needs high reduction of material. Scherf says while it can be used as a primary crusher in certain applications, a horizontal shaft impactor comes to the fore as a secondary or tertiary crusher in softer, non- abrasive rocks such as limestone. “As the name implies, it crushes using the impact of the feed material against metal hammers. Perhaps the most versatile of all the crusher types, offering the best in terms of reduction ratio and producing a cubicle product, the operating cost in abrasive or hard feed materials limits its practical applications,” says Scherf. Ravenscroft says impact crushers can be classified as primary/secondary crushers or secondary/tertiary crushers. He adds that they have a higher crushing ratio of up to 10:1. They are more acceptable to larger feed sizes than cone crushers, but still giving an output size similar to cone crushers. As far as the vertical shaft impactor (VSI) crusher is concerned, Scherf argues that this is the most misunderstood of all crushers and often called a ‘shaping’ crusher. He reasons that the VSI is an impact crusher that uses a rotor to accelerate material and sling it against a rock wall built around the rotor. The VSI plays a critical part in obtaining high specification road stone, or as a pre-milling crusher to increase mill throughput in mining applications. It is often used in sand making applications, especially in applications such as silica sand and other abrasive feeds where the operating cost of an HSI would be too high.

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CRUSHING – PART 1

A jaw crusher is universally applicable in primary crushing applications and is used to reduce large material to a more manageable size.

on a very hard granite or basalt can result in the hammers breaking at worst, or very high operating costs at best. “Knowing the silica content or abrasion index of the feed material is critical in selecting not only the correct crusher, but also the correct wearing materials to ensure a profitable operation,” says Scherf. He adds that rock properties, even

on the same rock types, vary considerably as they are produced in a natural and varying environment, not a controlled lab. “Not all granites are the same, a fine grain granite is significantly harder than a coarse grain granite; some will have a higher silica (SiO2) content than others. In order to manage customer expectations and operating costs, we

generally send rock samples to the Metso Lab for abrasion and crushability tests, we can then simulate the plant and provide accurate estimates of the operating cost and ensure we have the correct configuration,” adds Scherf. Scherf also reasons that harder material will have an impact on the number of crushing stages. “The harder the rock the more energy required to break it down. Similar to a racing car, using different gear ratios depending on the race track, efficient and economical operation of a plant requires fine tuning to take the material properties into account,” he says. Van Rensburg says a good host rock is vital for production of a quality product,

“The hardness of the material will also affect the primary crusher selection and may well impact the throughput that can be achieved through the crushing circuit.”

CAPITAL EQUIPMENT NEWS AUGUST 2018 12

It is crucial to design and manufacture crushing plants with appropriately sized and staged equipment.

Impact crushers are used mainly for less abrasive materials as primary and secondary crushers.

and the geology of the host rock is relevant right from the blasting stages of aggregate production. This tends to affect the size of the material that will report to the crushers, and hence will determine the size of the jaw crusher required at primary stage.

“The hardness of the material will also affect the primary crusher selection and may well impact the throughput that can be achieved through the crushing circuit. Silica levels and other abrasiveness factors will influence wear levels, so operators need to

be aware that maintenance interventions may be more frequent under these conditions,” concludes Van Rensburg. Look out for Part 2 of this article in the September edition of Capital Equipment News. b

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AFTERMARKET SUPPORT

Babcock relies on its widespread branch footprint in southern Africa to respond to service requirements timeously.

Maximising equipment value through service

The majority of today’s industries are driven not just by technological innovation, but equally by the service provided. This is mostly true in the capital equipment space; service ahead of product is not new, but as the industry continues to develop, the importance of service is further developing, gaining more focus and importance, writes Munesu Shoko. I n today’s operating conditions, consumers are doing more research before they make those crucial buying decisions. They expect suppliers to meet their needs and respond to their problems effectively and swiftly. This is even more so when it comes to big-ticket purchases, such as capital equipment. The consumer will not only buy the product, they will expect the service they receive to be up to their expectations. The aftersales services play a role in the client’s decision to purchase. In the capital equipment industry, what matters more today, and has been for long, is the service delivered after the product has been supplied. Hennie van der Walt, director, Aftermarket & Customer Support at Bell Equipment, agrees, saying service has been increasing in importance over the years. “In part, I believe it’s because equipment owners

CAPITAL EQUIPMENT NEWS AUGUST 2018 14

are getting more and more sophisticated in managing their owning and operating (O&O) costs, highlighting the significance of total cost of ownership over the life of

equipment,” says Van der Walt. He further reasons that capital

equipment owners are realising more and more how significant the actual cost is. “In addition, cost pressures keep on increasing and equipment owners are also much more sensitive to the cost of downtime and low productivity. Securing funding has grown in importance and it is becoming more common that this is included in the initial financing of the equipment,” he says. Ben Buys, technical director – Equipment at Babcock, shares the same view, saying that the support for capital equipment has never been more important as margins continue to shrink. “Efficiency is of paramount importance, and this requires the right support at the right time and at a realistic value,” says Buys. Shubra Narasimhan, Caterpillar aftermarket solutions representative, Construction Industries, says helping customers to keep their machines working more efficiently and for longer is crucial. “Together with our dealer network we provide a wide range of solutions to support our customers throughout the working life of their Cat equipment – whether preventative maintenance, fast parts delivery, training or even machine rebuilds,” says Narasimhan. Speed of service matters There is so much emphasis on speed of service as the importance of uptime cannot be reiterated enough in today’s operating conditions. Buys says a short reaction time for service support is vital in containing downtime. “Support should be in the form of accurate diagnosis of the required service and then, more importantly, have the correct parts or components available to complete the repair. The latter is possibly more important when the supply chain relies on logistics to support the service effort,” says Buys. Van der Walt says speed of service is critical for customers as the cost of downtime is significant. That said, the required speed also depends on the customer’s maintenance practices. If the customer has a run-to-failure philosophy, stoppages will in general be unplanned and therefore the speed to respond critical. “If the customer has a more pro-active approach, more of the stoppages will be planned and therefore the responses in the support structures

Aftermarket support impacts the total operating and owning costs of the equipment.

Bell operates an 11 000n m² Global Logistics Centre located in Jet Park, Gauteng. The facility has a dedicated focus on aftermarket by delivering worldwide parts support.

QUICK TAKE

In the capital equipment industry, what matters more today, and has for a long time, is the service delivered after the product has been supplied

Equipment owners are getting more and more sophisticated in managing their owning and operating costs

Reliable aftermarket support is a key factor in helping end users lower their total cost of ownership

The Internet of Things in the equipment industry will in all likelihood provide a platform for the processing of all the raw data to predict trends which will then trigger particular support interventions

CAPITAL EQUIPMENT NEWS AUGUST 2018 15

AFTERMARKET SUPPORT

will probably be less sensitive to speed. As Bell Equipment, we internally plan to service as fast as possible as we believe it is something that differentiates us,” says Van der Walt. Stephanie Latini, Caterpillar aftermarket solutions area manager, Mining Industries, says in today’s fast-paced environment, it is all about productivity and efficiency. He reasons that something as simple as a failing hose could have dramatic consequences for the productivity of a project. “We work closely with Barloworld Equipment, our dealer in southern Africa, to ensure that we have the right solutions in place to minimise machine downtime. To this end, we offer component repair planning schedules, maintenance contracts and monitoring fault codes in order to alert customers to potential issues,” says Latini. “Additionally, we work closely with customers to tailor solutions to meet their specific needs, for example, stocking hoses on location to support large job sites.” TCO in focus Reliable aftermarket support is a key factor in helping end users lower their total cost of ownership. Samantha Swanepoel, executive head: Marketing impacts the total O&O costs. She reasons that construction and mining equipment operates in tough environments and it is the role of the supplier to help customers optimise their O&O costs over the lifetime of the machine. “For example, our S.O.SSM fluid analysis lab in Johannesburg carries out routine checks of oil, coolant and fuel to prevent unexpected failures and unplanned downtime,” says Swanepoel. “Equipment management and telematics also play a vital part. For instance, Barloworld Equipment offers a range of repair options to prevent failure – from fixed price component repairs to Cat certified rebuilds. Cat machines are designed to be rebuilt and this of course, drives down the total cost of ownership.” Van der Walt says at a high level you can split total cost of ownership into owning and operating costs – owning cost being the cost to acquire the equipment and operating costs being all costs related to operating the equipment. Operating costs can then again be divided into service costs and repair costs – service costs being the cost to service equipment according to OEM specification and repair costs the costs associated with replacing failed components. and Communications at Barloworld Equipment, agrees that aftermarket

TALKING POINTS

“Technology has the potential to dramatically improve efficiencies for both the OEM and the customer through digital interfaces, remote fault finding and diagnostics. This will also impact the visibility we have on the performance of equipment and operators and how fast this information is available.”

Hennie van der Walt, director, Aftermarket & Customer Support at Bell Equipment

“Helping customers to keep their machines working more efficiently and for longer is crucial. Together with our dealer network we provide a wide range of solutions to support our customers throughout the working life of their Cat equipment – whether preventative maintenance, fast parts delivery, training or even machine rebuilds.” Shubra Narasimhan, Caterpillar aftermarket solutions representative, Construction Industries

“The support for capital equipment has never been more important as margins continue to shrink. Efficiency is of paramount importance, and this requires the right support at the right time and at a realistic value.”

Ben Buys, technical director – Equipment at Babcock

“When talking about the aftermarket support regime, it is often reduced to the availability of technical support and parts availability. These are the support services required most often by customers, but at Bell our regime covers a much wider range of services,” says Van der Walt. “We also offer technical and operator training, service and maintenance contracts, extended warranties, Bell lubricants, remanufactured components, lubricant check (Lubecheck) and our telematics system (Fleetmatic). We believe that if a customer uses these services or a combination of them, they will reduce their operating costs.” Buys reasons that total cost of ownership covers many aspects of ownership. “At Babcock we endeavour to provide an affordable but high quality

aftermarket solution in the areas of ownership costs, which fall under the supplier’s control,” he says. “This is achieved by providing a selection of services, including service and maintenance contracts, consignment parts, man-on-site service, regular machine condition reports and operator training, among others.” Support infrastructure To be able to execute a proper aftermarket strategy, a fundamental pre-requisite is to have the infrastructure that allows the supplier to respond to any service needs timeously. Narasimhan says capacity and capability are absolutely key in order to support end users’ fleets. “Last year, Caterpillar opened a new parts distribution centre near Johannesburg. The 60 000 m²

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“We also have a logistics hub in Johannesburg that replenishes the branches and dealers in the region. We have an extensive IT backbone comprising enterprise resource planning (ERP) systems, customer relationship management tools and service software to ensure we can manage the customers’ end-to-end experience,” adds Van der Walt. Additionally, Bell operates a massive 11 000 m² Global Logistics Centre (GLC) located in Jet Park, Gauteng on the doorstep of Africa’s largest airport, OR Tambo International. The facility has a dedicated focus on aftermarket by delivering worldwide parts support. It has three types of storage, namely racking, shelving and electronic lean lifts for the storage of small parts. A 500 m conveyor system is the primary transportation within the GLC and, moving at 4 m per second, can manage up to 400 totes or ‘shopping baskets’ of parts, each weighing up to 25 kg. The GLC also houses a machine and component remanufacturing facility. Support evolves Aftermarket is evolving from just being the provision of spare parts and fulfilling maintenance contracts. The use of newer technologies, such as fleet management solutions, is further easing maintenance issues, for example. Van der Walt, agrees, saying technology has advanced at a rapid pace over the past couple of years and is allowing OEMs and their dealers to handle larger amounts of data much faster and accurately. “This is a trend that will continue. We have our own telematics system called Fleetm@tic that is fully integrated with our machines and tracks and records all critical machine and productivity data that is easily accessible through a web portal,” he says. Van der Walt believes that using this technology is definitely going to be increasingly important for end users. “It

“Aftermarket impacts the total operating and owning (O&O) costs. Construction and mining equipment operates in tough environments and it is the role of the supplier to help customers optimise their O&O costs over the lifetime of the machine.”

Samantha Swanepoel, executive head: Marketing and Communications at Barloworld Equipment

“In today’s fast-paced environment, it is all about productivity and efficiency. Something as simple as a failing hose could have dramatic consequences for the productivity of a project.”

Stephane Latini, Caterpillar aftermarket solutions area manager, Mining Industries

facility enables us to work more efficiently and has increased capacity to provide unmatched parts availability to customers across southern Africa,” she says. Latini adds that the facility stocks 110 000 different parts and components and serves over 10 000 customers in the region. “We have a co-location arrangement with our dealer, Barloworld Equipment, and a portion of the facility hosts their retail parts. Barloworld Equipment has been a Cat dealer since 1927, and has a strong presence across southern Africa with 77 branches and approximately 5 000 employees. It is our first dealer in the world to co-locate the parts warehouse and parts counter,” says Latini. Buys says Babcock relies on its widespread branch footprint in southern

Africa to respond to service requirements timeously. The branches are placed in strategic areas which are close to all the major machine fleets, which in turn ensures that the company operates an efficient support network. “We also operate main parts and logistics hubs in order to efficiently distribute parts throughout our areas of responsibility,” he says. Reiterating the significance of support infrastructure, Van der Walt says Bell Equipment has 20 branches in South Africa, complemented by nine others across southern Africa. “In addition, we have dealers covering the remaining southern African countries where we operate. These branches and dealers all have warehouses and workshops,” says Van der Walt.

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AFTERMARKET SUPPORT

allows our customers to manage their fleets with much more intelligence than before. It gives them a tool to identify machine conditions before an actual breakdown happens and to manage operator behaviour – in terms of productivity or costs (fuel burn, idle time, loading, among other parameters).” Buys says all premium products rely on some form of remotely accessed fleet reporting and diagnostic functions. “We are no different; the value add arises with how a supplier uses the available information as a value add tool to enhance their service to the customer. We have teams with special focus on using the information to pre-empt service requirements, warn customers of operating anomalies and using the total machine fleet running hours to assist in parts scaling,” says Buys. Narasimhan strongly believes that telematics is the way forward. “We offer various options for customers, tailored to their needs including basic daily location reports to full site equipment management solutions. We have put in a great deal of effort into R&D in this area,” she says.

Bell’s aftermarket regime covers a much wider range of services than just technical support and parts availability.

looking for to make their operations more efficient. It is amazing to think that we can now operate a Cat D11 dozer from 5 000 miles away!” Tech influence With technological evolution continuing unabated, anchored by trends such as automation and Internet of Things, how will these influence service provision? Latini says today, most Cat machines come with integrated technologies, such as Cat Connect Link, providing valuable insight into machine or fleet performance. He adds that Product Link is deeply integrated into machines, providing easy access to timely information, such as hours, fuel usage, idle time, location and event codes. “Data is available via the online VisionLink user interface for assisting in more effectively managing the fleet and reducing operating costs. Through Cat Connect, we can plan effortlessly and know exactly where the machine is and when it is due for maintenance and repairs. An alert can automatically trigger a parts order to ensure we have the right parts and mechanic for the job when the machine is due for servicing,” says Latini, adding that leveraging technologies allows suppliers to plan better and this will continue to evolve in the future. Buys says the Internet of Things in the equipment industry will in all likelihood provide even more of a platform for the processing of all the raw data to predict trends which will then trigger particular support interventions. “Simulator screening and training of operators will evolve along with virtual reality. Technical training, support manuals and safety all fall within the reach of virtual/enhanced reality,” he says. Van der Walt is of the view that this will continue to have a significant impact on service provision. “Technology has the potential to dramatically improve efficiencies for both the OEM and the customer through digital interfaces, remote fault finding and diagnostics. This will also impact the visibility we have on the performance of equipment and operators and how fast this information is available,” concludes Van der Walt. b

According to Latini, Cat Connect and Minestar make smart use of technology and services to improve jobsite efficiency as well as enhance safety; and can be combined in customised ways that support different customer requirements and segments. “Whether it is equipment management or automation of machines, this is going to bring the competitive advantage our customers are

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SERVICES

In recent years, truck suppliers have taken a more proactive approach when it comes to service.

The future of service

From a service perspective, there is so much talk about giving customers a “complete offering”, not only in the truck sector, but across many industries. But, what exactly does a complete service offering entail? Mark Erasmus, GM Services at Scania South Africa, shares his vision of the future of service. By Munesu Shoko

I n a world where service has become the buzzword of every industry, it has come to epitomise a means of delivering hassle-free value to customers by facilitating outcomes customers want to achieve. As everyone tries to grasp the fundamental concept of service, the industry has somehow idealised the “total service provider” model, known in some circles as the “complete offering”. But, what does this entail as service, especially in uptime-driven industries, such as the truck sector, continues to take different forms and shapes? Speaking to Capital Equipment News , Mark Erasmus, GM Services at Scania South Africa, says service has evolved over the years, and while everyone talks about a complete offering, there is so much more that needs to happen before the industry can start talking about having achieved the total service provider operating model. However, he agrees that the truck industry, in particular, has made some strides in terms of its service offering. He is of the view that while the old adage, sales sell the first truck, and service sells

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