Capital Equipment News August 2019

For informed decision-making AUGUST 2019

MOVE MORE WITH VOLVO

CRUSHING: Giving emerging contractors a strong technical foundation

TCO – VIBRATING SCREENS: Unpacking TCO in vibrating screens

COMMERCIAL VEHICLES SCANIA’S NTG GAINS EARLY TRACTION PAGE 20

MATERIALS HANDLING: On a one-stop provider path

MOVE MORE WITH VOLVO

transport news 35 Ctrack launches Driver Mobi service 35 Converting heavy duty vehicles to natural gas mining news 36 Not just any pump will do for a filter press 37 Terex Trucks reinforces commitment to SA construction news 39 Volvo CE sales rise 10% in second quarter 40 Wacker Neuson appoints new KZN dealer 30 Joe Keenan on why partners' tech pipelines are crucial to mine productivity 32 Five maintenance tips to keep excavators in top condition 33 Quinton de Villiers on the race for last-mile fulfilment in supply chain COMMENT 2 TCO in focus cover 4 Move more with Volvo Crushing 8 Giving emerging contractors a strong technical foundation TCO – high voltage motors 12 Understanding the total cost of HV motor ownership TCO – vibrating screens 16 Unpacking TCO in vibrating screens commercial vehicles 20 Scania's NTG gains early traction Materials handling 24 On a one-stop provider path interview 28 Why construction has entered the AI race 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: Ano 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 THOUGHT LEADERSHIP NEWS Total circulation Q1 2019: 4 595

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EDITOR'S COMMENT

TCO IN FOCUS

T hat the sticker price remains a major influencer of most buying decisions is no exaggeration. Understandably, in a difficult economy, capital isn’t always available, and procurement decisions are forcibly taken based on capital cost without necessarily factoring the ‘hidden’ lifecycle ownership costs. Total cost of ownership (TCO) is no new term, but do we really understand what it means? What does it mean for cash-strapped capital equipment owners who need to make wise decisions on capital equipment purchases? Are you looking at the bigger picture, not just the upfront cost? As you will see in two of our TCO features in this edition of Capital Equipment News , the ongoing costs after you have written the cheque for that piece of capital equipment are just as important, if not more important, as the purchase price. However, for certain assets acquisitions, purchase price and ownership cost can be very different. Acquiring certain assets brings purchase costs, but ownership can also lead to many other “hidden” costs during service life. TCO analysis attempts to uncover both the obvious costs and the hidden costs of ownership. TCO highlights the difference between purchase price and long-term cost. There is actually a general school of thought that owning the equipment could cost between five and eight times the purchase price, if not more. Today, instead of just focusing on purchase price, TCO analysis should be

largely supporting buying decisions for a wide range of assets in the capital equipment space. This should be a major consideration on items with significant maintenance and operating costs across ownership life. One area where TCO should be a principal factor in any buying decision is the high voltage (HV) motor sector. Efficiency is a big factor in achieving lower TCO in HV motors. The upfront capital cost of a motor should be no big factor. To give an idea, only 2% of the total lifecycle cost of an electric motor is attributable to the initial purchase price, and some 97% represents the energy costs used to power the machine. Therefore, the efficiency of the motor, its reliability and its correct sizing for the application, are all critical factors in achieving maximum efficiency and minimising the costs of operation. It is important that ownership life receives special attention in any capital equipment procurement decision. TCO analysis can play a central role in decision support, but also in budgeting and planning. The fact of the matter is that a TCO analysis tries to pick out all of the lifetime costs – obvious and hidden – that follow from a decision to own a piece of equipment. TCO lifespan should reflect the acquisition’s economic life, service life and depreciable life. It is advisable that every procurement decision entails an objective TCO analysis process with a systematic search plan that aims to uncover every cost impact caused by the acquisition.

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

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CAPITAL EQUIPMENT NEWS AUGUST 2019 2

COVER STORY

In an environment where every cent counts, the Babcock-supplied Volvo Gz-Series wheel loader range, a simplified version of the F-Series, allows equipment owners to load more for less with its lower upfront capital costs and an array of standard fuel-saving and productivity enhancing features, writes Munesu Shoko . MOVE MORE WITH VOLVO

D espite the competitive the L60Gz (12,8 t), L90Gz (15,2 t) and the L120Gz (19 t) – continues to find significant traction in southern Africa. The 11-19 t category makes up the bulk of local wheel loader sales, with industry figures showing that a total of 300 units were sold between May 2018 and April 2019. Babcock reports that its Volvo Gz series has gained considerable market share, with the L120Gz – ideally-suited to truck loading and materials handling applications at quarries and small mines – being the best seller in the range. The L60Gz and L90Gz models are suited to general earthworks, civil works, small sand works and agricultural applications. Innovation often involves high technology – but it doesn’t always have to. Some of the best ideas are simple, based on a clear and deep understanding of customers’ working lives. With that in mind, Volvo simplified the design of its Gz series to meet an apparent increasing need for offerings that close the gap between value brands and their premium counterparts. According to David Vaughan, MD of Babcock’s equipment division, the range’s nature of the wheel loader market and the tough market conditions in general, the Volvo Gz range – comprising

“The Gz series is a cost-effective wheel loader range. In a market where customers account for every cent they spend, price, fuel consumption, productivity and machine utilisation are all under the spotlight as businesses seek to get the best out of their capital equipment investments. The Gz series ticks all the right boxes, and that, complemented by Babcock’s unparalleled aftermarket support, is a winning formula for our customers.”

David Vaughan, MD of Babcock’s equipment division

“Service and maintenance checks need to be quick and easy to perform in order to achieve maximum machine uptime. With excellent access to the engine compartment and ground level filters, operators will benefit from time saving features that allow them to get the most out of every day.”

Lance Mannix, GM Sales – Babcock’s equipment division

TALKING POINTS

simple design has resulted in lower upfront costs compared with the F series range. However, the Gz series retains all the crucial Volvo powertrain components found on the F-Series. The ideally-matched, all-Volvo powertrain has been built to work together in perfect harmony. The Volvo design has been comprehensively tested to deliver optimised performance, high productivity, low fuel consumption and greater reliability.

CAPITAL EQUIPMENT NEWS AUGUST 2019 4

Model Engine

L60Gz

L90Gz

L120Gz

Volvo D6E

Volvo D6E

Volvo D7E

Max power Max torque

114 kW

128 kW

179 kW

1 700 rpm 1 700 rpm

1 700 rpm

Breakout force Bucket sizes Operating weight

112,9 kN 1,8-3,5 m³ 12,3-12,8 t

159,3kN

198,4kN

The L120Gz is ideally-suited to truck loading and materials handling applications at quarries and small mines.

2,4-4,5 m³

3,1-5,2 m³

14,5 - 15,2 t

18-19 t

Static tipping load 7 680 kg

10 230 kg

12 120 kg

Lance Mannix, GM Sales – Babcock’s equipment division, explains that the biggest change is the new Z-bar linkage, which replaces the Torque-Parallel linkage found on the F-Series. The biggest advantage of the Z-bar linkage is its fewer parts than the Torque-Parallel linkage, thereby reducing owning and operating costs. “The Gz series is a cost-effective wheel loader range. In a market where customers account for every cent they spend, price, fuel consumption, productivity and machine utilisation are all under the spotlight as businesses seek to get the best out of their capital equipment investments. The Gz series ticks all the right boxes, and that, complemented by Babcock’s unparalleled aftermarket support, is a winning formula for our customers,” says Vaughan. Lower fuel consumption Doing more with less is a trademark of Volvo Construction Equipment and with the Gz series, productivity has been married with low fuel consumption and ease of use. The range comes with a host of standard fuel saving features. Said to be unique to Volvo CE, the Eco Pedal ensures fuel consumption is kept at a minimum by applying mechanical push-back force when engine rev per minute (rpm) is about to exceed the efficient operating range. “The Eco Pedal encourages the operator to engage the throttle pedal with ease to lower fuel consumption by applying the appropriate amount of mechanical counter pressure (push-back). This pedal feature promotes operator efficiency by avoiding excessive fuel use,” says Mannix. Meanwhile, the Automatic Power Shift allows the machine to operate in the best gear according to speed, kick down and engine braking. The Fully Automatic Power Shift (FAPS) automatically switches to first gear when additional power is needed for lower fuel consumption. “FAPS ensures optimal

The Volvo Gz range’s simple design translates into lower upfront costs compared with the F-Series range

The Gz series retains all the crucial powertrain components found on the F-Series. The ideally-matched, all-Volvo powertrain has been built to work together in perfect harmony

The biggest change is the new Z-bar linkage, which replaces the Torque- Parallel linkage found on the F-Series

The Eco Pedal ensures fuel consumption is kept at a minimum by applying mechanical push-back force when engine rpm is about to exceed the efficient operating range

QUICK TAKE

CAPITAL EQUIPMENT NEWS AUGUST 2019 5

COVER STORY

operators will benefit from time saving features that allow them to get the most out of every day,” says Mannix. Maintenance-free rear axle cradles minimise force on the axle, ensuring long component life. “The rear axle is supported on maintenance-free cradles and includes lubricated-for-life bearings and bushings – reducing overall service cost and increasing machine uptime,” explains Mannix. The radiator can be easily accessed and cleaned from ground level. The cooling fan’s optional reversible functionality – which blows air in the opposite direction – allows for self-cleaning of the cooling units. The transmission, hydraulic tank, front and rear axle and fuel tank are ventilated by a replaceable breather filter, reducing the risk of contamination and increasing service life. For increased safety and reduced risk of machine damage, the Volvo brake wear indicator enables brake disk wear to be easily monitored, and service life of the main components is further enhanced by replaceable breather filters that ventilate the transmission, hydraulic tank, front and rear axles and fuel tank. Operator comfort Based on Volvo’s understanding that a comfortable operator is a productive one, the new range’s design gives enough attention to operator comfort. The cab comes with ergonomically laid out controls, a tiltable steering wheel and vibration damping. All-round visibility from large expanses of glass and slim cab pillars helps to create a safe, productive and comfortable operating environment. The cab air intake is located high on the machine, where air is cleanest. The easy-to-replace pre-filter effectively separates coarser dust and particles before the air passes through the main filter and enters the cab. Volvo’s design allows 90% of the cab air to be recirculated through the main filter for continuous dust removal. The Volvo Contronics system continuously monitors and records machine operation in real-time. This ensures that the operator has all the necessary information and diagnostics for optimal performance. The information including fuel levels and warning messages is relayed via the display in the cab. “The number of warning messages going to the operator have been significantly reduced compared with the F-Series. This is to make operation of the machine as simple as possible,” concludes Mannix. b

The biggest advantage of the Z-bar linkage is its fewer parts than the Torque-Parallel linage, thus reducing owning and operating costs.

Good access to the engine compartment and ground level access to all the service points such as filters allows regular checks to be performed faster.

operation by adjusting machine gears in line with parameters including engine and travel speed, for comfortable gear

to-use feature increases productivity and shortens cycle times,” explains Mannix. Built for increased uptime The L60Gz, L90Gz and L120Gz are built with quick and easy service and maintenance in mind. Good access to the engine compartment and ground level access to all the service points such as filters allows regular checks to be performed faster. This reduces downtime related to service and maintenance work. “Service and maintenance checks need to be quick and easy to perform in order to achieve maximum machine uptime. With excellent access to the engine compartment and ground level filters,

changes and fast cycle times.” The Z-bar linkage offers higher

breakout forces for powerful digging and complete bucket fill when loading. This is complemented by load-sensing hydraulics said to supply power only when needed, significantly lowering fuel consumption. Bucket pins are double sealed to keep grease inside the bearing and dirt out, ensuring long pin and bearing life. Automatic bucket leveller and boom kick- out functions accurately stop the bucket and linkage in adjustable, pre-selected positions. “When activated, this easy-

CAPITAL EQUIPMENT NEWS AUGUST 2019 6

CRUSHING

B&E International has developed its own mobile, track-mounted coal crushing unit that is configured to the needs of the coal market.

Giving emerging contractors a strong technical foundation

To give upcoming contractors the traction they need in a merciless contract mining environment, crushing specialist B&E International is establishing strategic alliances with emerging contractors operating across several commodity areas. In these partnerships, B&E International assumes the role of technical partner, providing both the equipment and technical skills needed to execute projects, while mentoring the JV partner in the process, writes Munesu Shoko .

T hat the development of emerging mining ety of challenges that hinder their success – chief among them is the lack of technical aptitude and capacity to raise finance to buy the capital equipment they need to execute the projects. Ken Basson, Director Plant & Engineering at B&E International, says contract mining is capital intensive, especially considering that the capital equipment required to execute the projects is expensive, making it particularly prohibitive for emerging contractors. Apart from financing, these entities also lack the technical knowhow to execute complex mining projects. With that in mind, B&E International is partnering emerging contractors that are willing to draw from its over four decades of experience in designing, engineering, building and operating its own mobile and static plants contractors takes priority in South Africa is no secret. While there is much talk about awarding mining projects to emerging contractors, the young companies are still confronted by a vari-

on a toll basis for clients across an array of commodity areas. In these joint ventures, B&E International assumes the role of technical partner, providing both the equipment and the technical aptitude needed to execute the projects. In the process, B&E International also upskills the emerging contractors, helping them develop in order to become major players in the industry. “A major challenge for emerging contractors is that the cost price of mining projects is generally very high. In the end they have to contend with very large capital costs to start off the project. This is where we come in – not only to help them to get started, but also to develop to become major participants in the industry,” says Basson. He explains that when B&E International enters into a strategic partnership with an emerging contractor, it typically focuses on the technical side of the project and the JV partner (the emerging contractor) focuses on the operational related aspects of the project. “By using our resources and in-house manufacturing capabilities, we minimise the capital cost for our JV

CAPITAL EQUIPMENT NEWS AUGUST 2019 8

A multi-stage coal crushing station.

partner. We enable the project to get off the ground by providing a cost-effective processing plant that is operated on a toll basis,” says Basson, adding that the concept is geared at facilitating the entry of new players into the market, because it gives them the opportunity to get projects going, despite their lack of technical knowhow and resources. “Our biggest aim is to mitigate our partner’s financial and operational risk by ensuring that we operate the plant at the lowest possible cost per tonne on a continuous and sustainable basis,” adds Basson. Preferred partners Basson says B&E International is keen to work with selected preferred partners in certain regions and commodities. The idea is to develop long-term partnerships, not just having one partner today and another one tomorrow. “We want to build up partners in various strategic geographical areas. For example, in the coal region of Mpumalanga, we have three partners we have already built up over time,” he says. Basson, however, reiterates that while B&E International has already established several key alliances in the coal industry, the focus spans across other commodities like gold, copper, manganese and diamonds. “Those are typically the commodity areas that we focus on,” he says. Basson also mentions that B&E International is willing to partner on both short and long-term projects, but

QUICK TAKE

Emerging contractors are confronted by a variety of challenges that hinder their success – chief among them is the lack of technical skills and capacity to raise finance to buy the capital equipment they need to execute projects

B&E International is establishing strategic partnerships with emerging mining contractors, assuming the role of technical partner to provide both the equipment and the technical skills needed to execute the projects

B&E International’s biggest aim is to mitigate its partners’ financial and operational risk by ensuring that it operates processing plants at the lowest possible cost per tonne on a continuous and sustainable basis

Leveraging its skills and experience in the industry, B&E International has developed its own mobile, track-mounted coal crushing unit specifically configured to the needs of the coal market

CAPITAL EQUIPMENT NEWS AUGUST 2019 9

CRUSHING

coal processing is to minimise processing costs. To achieve that, you need to produce high tonnages at low cost. This was one of the key considerations when we developed the new coal crusher,” says Basson. More importantly, Basson says the new crusher meets all particle size distribution (PSD) requirements for Eskom. The crusher is designed to minimise both oversize and fines generation, a very important parameter in coal processing. “In terms of energy consumption, the newly designed track-mounted coal crusher provides considerable fuel savings when compared with current equipment available on the market. The cost savings are passed onto the customer by B&E International when operating on a toll basis,” adds Basson. “Based on our proven mobile crushing plant designs, this unit has been developed on the strength of our own research and development over time,” he says. “Our design technology, utilising 3D modelling and finite element analysis (FEA) in the preparation stages, enabled us to locally manufacture this innovative mobile track-mounted version in our own engineering facility.” The crusher performance was validated in static form prior to its conversion to a mobile configuration. Testing in the field was then conducted extensively, delivering exceptional results, according to Basson. B&E International has since commissioned the first unit for one of its partners working on a coal project in Mpumalanga. “The higher throughput capacity also brings important potential safety benefits to the mine,” he says. “When the mobile track-mounted crushing unit is used in conjunction with the required primary crushing and sizing equipment on a mine site, the need to employ a number of lower capacity crushing units is eliminated. This, in itself, potentially reduces safety risks as less equipment is required on the mine site, minimising equipment congestion and movement.” In conclusion, Basson says the most important thing, as B&E International further develops its JV concept with emerging contractors, is to partner companies that have the passion to learn. “We are so passionate about passing on the skills we have gained in over four decades to the next group of mining contractors and this model allows us to do exactly that. In my view this is the future of the industry,” concludes Basson. b

“A major challenge for emerging contractors is that the cost price of mining projects is generally high. In the end they have to contend with large capital costs to start off the project. This is where we come in – not only to help them to get started, but also to develop to become major participants in the industry.”

Ken Basson, Director Plant & Engineering at B&E International

TALKING POINT

Primary coal crushing station developed and operated by B&E International.

the priority is mainly long-term projects, which allow for creation of long-term partnerships. Long-term projects also give B&E International ample time to empower the JV partner through skills transfer. In long-term projects, B&E is also prepared to finance the project on behalf of the JV partner, depending on the feasibility. Technical experience Basson says B&E’s technical knowhow, developed over the years, is a big factor in ensuring the success of projects. “We have gained extensive experience in mineral processing over the years. We also have the capability to do the whole process in the mining value chain, depending on the client’s needs – all the

way from blasting and load and haul to processing,” says Basson. Leveraging these skills and experience, B&E International has since developed its own mobile, track-mounted coal crushing unit configured to the needs of the coal market. Basson says this is a bespoke unit that allows its partners to be competitive in coal processing. “It is specially adapted to the operational conditions in the coal industry, based on our many years of experience working in the industry,” he says. Explaining the key differentiators of the new mobile coal crusher, Basson says the 550 t per hour throughput capacity far exceeds that of similar sized crushers in the market. “The most important thing in

CAPITAL EQUIPMENT NEWS AUGUST 2019 10

TOTAL COST OF OWNERSHIP – HIGH VOLTAGE MOTORS

A high voltage WEG mill drive motor in operation at a mine in South Africa.

Understanding the total cost of HV motor ownership When it comes to procurement of High Voltage (HV) motors, few end users ever think about the bigger picture – total cost of ownership. In fact, many still don’t understand what it costs to operate this type of equipment. While the spotlight is largely cast on the upfront capital cost, the fact of the matter is that purchase price is a very small factor in the overall cost of HV motor ownership. By Munesu Shoko.

I n a world where the sticker price is a key influencer in many procurement deci- sions, David Spohr, business development executive at Zest WEG Group, reasons that it is completely a different scenario when it comes to HV motors. According to Spohr, total cost of ownership (TCO) should be the principal consideration, and two key factors – efficiency and maintenance costs – are crucial parameters in the TCO equation. To help operators of HV motors in Africa run efficiently and profitably, Zest WEG Group has established a dedicated HV equipment division which specifically looks after its HV motors, medium voltage variable speed drives (VSDs) and power transformers. The division has been operational for the past four months and is led by Spohr, who has a wealth of experience in this market sector. In Africa, HV in motors is considered to be 3,3 kV; 6,6 kV and 11 kV. Globally, they get to a maximum of 13,8 kV, which is uncommon in Africa. WEG’s HV motors are typically

CAPITAL EQUIPMENT NEWS AUGUST 2019 12

is electrical. You will never find a motor that operates at 100% efficiency because losses exist in all motors due to friction, heat generation and materials, to name a few factors. specific benchmark in large HV motors because they fall out of SABS standards – they are usually purpose-built, application-engineered motors. However, WEG’s machines are designed to the highest efficiency standards, which range from 90-96%. Spohr says HV motors are capital intensive pieces of equipment. They may cost anywhere between R2-million and R25-million. Because of the high capital cost, some operators of this gear tend to run their motors well beyond their design lifetime. Meanwhile, when it is replacement time, there is always a big focus on the capital cost at the expense of efficiency, which is a key factor in overall cost of ownership. When it comes to running old technology motors, Spohr reasons that it is always important to remember that every motor is designed with a specific economical lifetime. He reasons that today’s engineering is a lot more precise and motors are designed for 25-30 year operation with guaranteed efficiency within that period of time. “Due to the perceived large capital cost of these machines, some end users tend to run their HV motors for a much longer period than what they were designed for. Some of them even exceed by an additional 10- 15 years,” he says. According to Spohr, if one looks at a five to 10-year running cycle of a low voltage motor, for example, the capital cost of the machine equates to only 2% of the total cost of ownership during that time. This is because of the high energy consumption costs; motors by their very nature consume a lot of electricity, and for that reason, efficiency is a key priority. “For example, in low voltage motors, within a five-week period, the actual running cost – what the end user has paid in electricity consumption to run the motor – will come close or exceed the initial capital cost of a new motor,” says Spohr, adding that this may be slightly different when it comes to high voltage motors because the capital cost is significantly higher. “For instance, the capital cost of a 110 kW motor is about R66 000, and within five weeks, the motor would have consumed R71 000 worth of electricity. Over a five-year period, the end user When it comes to the efficiency benchmark, Spohr says there is no

While the spotlight is largely cast on the upfront capital cost, the fact of the matter is that purchase price is a very small factor in the overall cost of HV motor ownership

Efficiency and maintenance costs are two key factors of consideration in the overall cost of running an HV motor

Only 2% of the total lifecycle cost of an electric motor is attributable to the initial purchase price

Close to 97% of the total lifecycle cost of an electric motor represents the energy costs used to power the machine

QUICK TAKE

Efficiency matters According to Spohr, efficiency is a big factor in achieving lower TCO in motors. Firstly, it is important to understand what efficiency is. Motor efficiency is the ratio between power output, which is mechanical, and power input, which

purpose-engineered motors that are used in manufacturing facilities, beneficiation plants, mines and quarries. “Very few of the end users of this equipment think about TCO and probably even fewer actually understand what it costs to operate HV motors,” reasons Spohr.

CAPITAL EQUIPMENT NEWS AUGUST 2019 13

TOTAL COST OF OWNERSHIP – HIGH VOLTAGE MOTORS

“For instance, the capital cost of a 110 kW motor is about R66 000, and within five weeks, the motor would have consumed R71 000 worth of electricity. Over a five-year period, the end user would have paid about R4,1-million in electricity consumption costs. That scenario best explains why efficiency matters when it comes to motors.”

David Spohr, business development executive at Zest WEG Group

TALKING POINT

on a specific existing application. We can offer a new motor which fits on an old footprint, but we can also recommend that the customer considers the modern way of doing things – the motor-VSD combination. This is for applications where you need to control the speed of the motor or the flow of air or liquid required,” explains Spohr. He reasons that there are tangible cost savings to be made with a matched WEG motor and VSD combination. Long-term reliability and efficiency of energy use are the result of a truly compatible motor and VSD combination. VSDs are said to be probably the best method for controlling motor speed in response to varying process demands. VSDs take the fixed-frequency AC supply and convert it to a variable- frequency AC supply. This controls the power use and mechanical power output so that the motor can run at the most efficient speed for the process. The control of the motor speed can be based on feedback from the process, for example, flow rate, temperature or pressure, so that process control is improved. As a result, small decreases in the speed of pumps and fans can lead to large decreases in energy consumption. According to ScienceDirect’s research paper, Energy Management Principles , using a VSD to reduce the speed of an AC motor by 20% could reduce the energy consumption by around 50%. “The WEG motor-VSD combination significantly reduces annual running costs. When it is replacement time, don’t just replace the motor, but consider replacing it with an upgraded version of what is available on the market right now. At Zest WEG Group, we have new technologies available that can help end users save on their energy costs, and ultimately reduce their TCO,” concludes Spohr. b

the operation of motors beyond their design lifetime means that end users keep on repairing their old machines at a much higher cost. Customers tend to keep repairing the old gear, finding comfort in the belief that maintenance is an operational expense. However, if one looks at the cost of repairing the motor repeatedly, say over three years, it may amount to the cost of buying a new, efficient motor. Spohr says the cost of a major HV motor overhaul or repair, for example, is generally about 60% of the replacement value. “Customers tend to do continuous repairs on their old motors, but never consider the value of their maintenance and repair costs. There is also need to be aware of the replacement value of the motor, versus the cost of repairs,” says Spohr. If a motor is burning out on a regular basis, it is a trigger point to make a replacement decision. “One needs to consider the actual amount of money they have already spent on repairs, which is normally quite substantial, as well as the money they have lost through downtime. When you get to a point where you constantly repair a motor, there is need to consider replacing it with a new motor, which effectively reduces risk and maintenance costs, while increasing efficiency.” Modern way Commenting on old generation motors, Spohr says many old pump and fan application motors are started in a very old-fashioned manner because technology wasn’t available or considered expensive at the time of installation. The required flow of air and liquid was controlled via mechanical ways – an old and inefficient way of doing it. With the establishment of its HV equipment division, Zest WEG Group now offers WEG motor-VSD combinations. “We can walk into a factory and do an audit

would have paid about R4,1-million in electricity consumption costs. That scenario best explains why efficiency matters when it comes to motors,” says Spohr. When it is procurement time, Spohr reiterates that the upfront capital cost of a motor should be no big factor. “It’s the cost of running the motor that really matters. The most common problem in Africa is that many people tasked with procurement duties do not understand this concept. They will buy a motor that is 2% cheaper, but not considering the efficiency, which has a direct impact on the total cost of ownership, which in turn is the difference between profitability and stagnation,” adds Spohr. Spohr’s views are corroborated by a paper entitled Policy Guidelines for Electric Motor Systems , which shows that only 2% of the total lifecycle cost of an electric motor is attributable to the initial purchase price, and some 97% represents the energy costs used to power the machine. Therefore, the efficiency of the motor, its reliability and its correct sizing for the application, are all critical factors in achieving maximum efficiency and minimising the costs of operation. Maintenance costs Another important factor when it comes to the operation of HV motors is maintenance costs. Spohr reasons that

CAPITAL EQUIPMENT NEWS AUGUST 2019 14

TOTAL COST OF OWNERSHIP – VIBRATING SCREENS

unpacking TCO in vibrating screens

L arge vibrating screens play an important role in the processing of ore at mining operations. Traditionally, the focus has always been on the capital cost, but Kim Schoepflin, CEO of Kwatani, a leading South African vibrating screen manufacturer, reasons that like any other piece of capital equipment purchase, the cost of owning a vibrating screen should be the principal factor when it is procurement time. But what are the key factors that affect total cost of ownership of these crucial pieces of equipment? “For me, cost of ownership entails five key parameters: capital cost, maintenance costs, equipment uptime, life of equipment and operating efficiency,” explains Schoepflin. However, she reasons that the design and

Large vibrating screens are a critical part of processing plants at mines and quarries. If not correctly engineered, the operating costs can become extremely high – to the detriment of mining operations already operating under severe cost pressures. What are the key design and engineering factors that affect total cost of ownership of vibrating screens? By Munesu Shoko .

CAPITAL EQUIPMENT NEWS AUGUST 2019 16

A Kwatani 4,3 m wide coal screen.

QUICK TAKE

The design and engineering of a vibrating screen has a great bearing on total cost of ownership

Knowing the exact type of machine that should be inserted in a plant, understanding the requested function and developing a machine that best suits these needs is very important

Reliable vibrating screen designs are dependent upon the proper marriage of the manufacturer’s capabilities and the understanding of requirements of the design

A Kwatani triple-deck vibrating screen for a local diamond mine.

The choice of various components of the screen, depending on the application requirements, is important in designing and manufacturing a vibrating screen that offers optimal cost of ownership

engineering of vibrating screens has a great bearing on these five factors. If not correctly engineered, the operating costs of a large vibrating screen can tremendously shoot up. Knowing the exact type of machine that should be inserted in a plant, understanding the requested function and developing a machine that best suits these needs is important. Therefore, when vibrating screens and vibrating processes in general are concerned, it is important to deal with expert companies like Kwatani. Leveraging 43 years of experience, with 15 000 units

marriage of the manufacturer’s capabilities and the understanding of requirements of the design. It is for this reason that Kwatani doesn’t offer catalogue sales for its vibrating screens; every unit is customised to meet the unique operational requirements. “The in-house design expertise gives us the ability to customise a piece of equipment to the needs at hand. Our knowledge base stems from a mechanical metallurgy expertise. We have to understand how our equipment integrates into the mine’s processes and how it impacts the upstream

across 37 countries, Kwatani has over the years lived up to its “engineered for tonnage” philosophy, anchored by the drive to offer its customers the lowest total cost of ownership possible. “We believe that innovation and technology are the most important pillars of our ‘engineered for tonnage’ philosophy,” she says. Fit-for-purpose manufacturing With uptime in mind, reliability of vibrating screens is key. Reliable vibrating screen designs are dependent upon the proper

CAPITAL EQUIPMENT NEWS AUGUST 2019 17

TOTAL COST OF OWNERSHIP – VIBRATING SCREENS

equipment is designed with the application and existing infrastructure in mind. When designing, Kwatani considers many factors that affect the life of the screen, efficiency and performance. The aim is always to produce a durable, long-life screen that does the job properly. “These factors have a massive effect on the total cost of ownership equation, and they have to be taken into account, while at the same time meeting the tonnage and process efficiency requirements. It is always important to design a solution that can give the most optimal output at the given infrastructure,” she adds. Correct choices Schoepflin also reasons that the choice of various components of the screen, depending on the application requirements, is important in designing and manufacturing a screen that offers optimal cost of ownership. For example, the correct choice of isolators is significant. “The screen stands on an isolator and it’s an important factor when designing a vibrating screen. It needs to be sized according to the size of screen and type of building structure” says Schoepflin. There are three basic isolators used in vibrating screens – coil spring, rubber buffer and a torsional spring. A coil spring typically gives the best isolation because its stiffness is linear across the stroke range. A rubber buffer, although non-linear, offers a better load handling and damping capacity. A torsional spring can be mounted on the support frame and that completely prevents side-way movements and keeps the machine in line and stable during start-up and stopping. Starting and stopping of a vibrating screen needs to be carefully considered in the design process. In the tests done by Kwatani on a specific screen, a coil spring takes 50 seconds to stop, a rubber buffer stops at 21 seconds, while the torsional spring stops within 12 seconds. “For cost-effectiveness, if the machine needs to be stopped in a certain manner, we can adopt a hybrid approach because a torsional spring is a bit expensive. We can provide the required stability by combining a torsional spring and a coil spring to get the cost element in line – and this has a vast impact on the total cost of ownership,” says Schoepflin. Another important parameter is the testing element. Every Kwatani unit is tested before it’s shipped and all units are commissioned by the company’s experienced and qualified technicians. This process ensures that the unit meets the design parameters that it was designed and fabricated for. “This is done to make sure that the unit meets the desired quality and robustness,” says Schoepflin, adding that in terms of quality, the OEM is

The robust grizzly screen used in an iron ore application being prepared for transportation.

One of the largest screens manufactured by Kwatani for the coal mining sector.

“For me, cost of ownership entails five key parameters: capital cost, maintenance costs, equipment uptime, life of equipment and operating efficiency.”

Kim Schoepflin, CEO of Kwatani

TALKING POINT

and downstream processes,” says Schoepflin. She adds that Kwatani’s engineers and metallurgists engage with the customer to understand what the customer is trying to achieve in terms of their application, what is the ore like and how it behaves, as well as where the vibrating screen will go, because more often these units are supplied on brownfields projects. “It’s not always new plants. New plants are few and far between. We see a lot of improvement projects, plant optimisation, increasing life of mine and brownfield expansions. So we need to understand where the equipment will fit in the existing infrastructure,” says Schoepflin. “It’s about working through each case through the eyes of a consultant; analyse the condition of existing equipment,

the customer’s requirements and the infrastructure. That incorporates the design with the most cost-effective solution,” says Schoepflin, adding that it is pointless to offer a screen that may give better processing efficiency, but not fitting into the existing infrastructure or requires massive plant modification. She reasons that a plant modification can actually cost more than the price of a new screen. Therefore, there is need to consider where the screen will go in the existing plant setup, its impact on the existing infrastructure, for example, power requirements, available headroom, weight restrictions and existing shoots, among others. The information is then disseminated into the mechanical design process where the

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one of the only 5% of local manufacturers of its size to be ISO9001:2015 certified. Reiterating the company’s testing capabilities, Schoepflin makes special mention of the company’s variable speed drive that has been connected to the test bench with specialised monitoring software. This allows Kwatani to experiment with the gearbox at different speeds. “This allows us to be more accurate when specifying the required drive for the vibrating screen or feeder, so that we can specify the right size and capacity in a more scientific way,” she says. “For instance, we may find that a smaller drive can provide the motion required without necessarily needing a larger drive, allowing the customer to save on energy costs. We are able to size the drive to the need, because often a larger drive means bigger upfront costs, and higher energy consumption.” Uptime and maintenance costs Schoepflin says in a sales situation, often customers opt for the cheapest unit in terms of capital cost. However, in most cases the cheapest vibrating screen tends to be the most costly in the end because of lack of required efficiency, breakdowns,

maintenance costs and related downtime. “The fact of the matter is that customers need to compare the actual efficiency of the units, lifetime costs, downtime and how much and difficult the maintenance is. With Kwatani screens, only wear parts and drive components are maintenance items. Typically a steel part is not a maintenance item because it is built to last,” she says. “One of the most important things in cost of ownership, especially considering the importance of a screen on a mine, is plant uptime,” says Schoepflin, adding that regular, cost-effective maintenance is essential in ensuring plant uptime. “Regular service is probably one of the most important elements in achieving optimal cost of ownership.” Schoepflin reasons that the industry is currently suffering from a lack of skills. To help close this gap for its customers, Kwatani probably has the highest number of tertiary qualified staff of any OEM of its class. In fact, the company has a building that houses highly-qualified engineers only. When it comes to maintenance, Kwatani offers customised service level agreements. “We offer customised service level agreements because not every customer is the same. In some instances we

have to continuously audit the screens and maintain them ourselves. In other cases we can train the customer’s workforce to oversee maintenance,” she says. “Our service programmes are not catalogued – it depends on the individual needs of the mine, which is an important factor. Together with the design, quality, efficiency and fitting the infrastructure, we find the service element being an important parameter in the cost of ownership equation,” says Schoepflin. Kwatani also offers a cost per tonne operational basis. “We also have a cost per tonne agreement, where instead of getting paid for our screens, we get paid on a cost per tonne basis. This type of contractual relationship aligns the interests of both the mine and supplier. This formula of sharing tonnage and risk positions Kwatani as a provider of value,” she says. To help customers extend the lifetime of their machinery, Kwatani also offers refurbishment programmes. “We refurbish our large screens. They lend themselves to refurbishment. When they come for refurbishment, we also look at the wear patterns and advise the customer on possible changes that can prolong the life of their screens,” concludes Schoepflin. b

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COMMERCIAL VEHICLES

A newly-delivered fleet of Scania’s NTG range.

Scania’s NTG gains early traction

Equally excited about the arrival of the NTG are local customers, and the rapid uptake of the new range and an order book that is fast filling up is testimony to the positive response to the new vehicle. Several Scania regional managers tell Capital Equipment News that the interest in the vehicle is beyond expectations, and the feedback thus far has been nothing but positive. As a result, Scania South Africa expects to surpass its sales projections for the year, while gaining slight growth in market share. This is despite the generally challenging nature of the truck market. Key markets thus far Michael Schoeman, Regional Sales Manager – Gauteng North Region at Scania South Africa, says long haul has accounted for the majority of the initial sales in the region, and surprisingly followed by construction, a market that is generally in the doldrums across South Africa. “Long haul currently accounts for 70-80%

Following the launch of Scania’s New Truck Generation (NTG) at the end of May this year, there has been a rapid uptake of the new range across all regions of South Africa and export markets. The positive customer feedback thus far is largely driven by the vehicle’s fuel efficiency and driver comfort, among an array of other features and benefits, writes Munesu Shoko .

T he arrival of the NTG in May this year ushered in a new era, not only for Scania South Africa, but more so for Scania customers who had patiently waited for the arrival of the new vehicle in the local market following its official introduction overseas in August 2016. Delivery of the new trucks began immediately after the launch event. Several demos have also been allocated to several customers and the feedback thus far has been very positive, with fuel efficiency and driver comfort at the centre of talking points. At the launch, Raimo Lehtiö, MD of Scania Southern Africa, noted that it’s normally a “15 to 20-year cycle before you go to market with a totally new vehicle” and it was an exciting period for the company to be able to offer its customers a new vehicle. Henrik Henriksson, President and CEO of Scania, was equally excited to present “products and services that will bring Scania to new levels regarding market shares and carry us far into the next decade”.

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about 20% of our sales,” says Steenkamp. David Barclay, Durban/KZN GM, says the market is also predominantly driven by long haul in his region. “About 99% of our sales have gone to long haul. Construction here is close to zero. We have also never been successful in distribution in the region,” he says. Customer feedback Judging from customer feedback thus far, fuel efficiency and driver comfort are the two major appealing factors, among other features. In an environment where fuel prices continue to soar, the new truck range has been designed for greater fuel efficiency through improved powertrains and better aerodynamics. This has resulted in up to 5% better fuel efficiency compared with the previous range. However, Schoeman says some transport operators are reporting better fuel efficiency figures than OEM projections. “Some of our customers are double and triple checking their fuel consumption figures because their results are over the projections we promised,” he says. According to Rouquette, the G- and R-are driving the early volumes in Gauteng. He makes special mention of the R560 model, which has accounted for the majority of sales in the long haul range. Why these models? The R-Cab is sturdier yet sharper than ever with an athletic body that redefines premium in the long haulage space. It has an engine range of 410 to 560 hp. The new G-series trucks are highly adaptable with outstanding driveability and visibility. The mid-size cab is suitable for a wide range of applications. It has an engine range from 360 to 460 hp. According to Barclay, the Scania old generation G460 was actually the number one seller in the market for Scania. Like its predecessor, the upgrade version of that model, the R460, is finding huge favour in the market. The same view is shared by Steenkamp, who says the 460 is selling well, both in G and R cab versions. The interest is reflecting in the order book, with the traditional fleet customer being the major recipient. Driver comfort Drivers are also giving great feedback on the new truck. In the NTG, Scania has placed greater focus on driver comfort. “The cab has been totally redesigned, including the cab suspension systems, reducing vibration and maximising comfort. The new work station has been improved with more adjustment possibilities and ergonomic features for

QUICK TAKE

Long haul has been a major driver of the early sales, with the G- and R-series being Scania’s bread and butter at the moment

Scania South Africa reports major interest in its NTG across all sales regions, including export markets

5% FUEL EFFICIENCY

XT SELLING BEYOND EXPECTATIONS

Despite the tough nature of the construction market, the new Scania XT range is selling beyond expectations in some regions

A key selling point of the new range is the up to 5% fuel efficiency, and some customers are reporting savings way above OEM projections

QUICK TAKE

Long haul currently accounts for the majority of the new sales’ range.

of our sales of the new range. The balance is made up of construction and other sectors. There has also been considerable demand from the distribution segment,” says Dale Rouquette, GM Gauteng North Region at Scania South Africa. The pattern is the same in the Central Region, where Morne Botha, GM Central Region at Scania South Africa, says long haul sales currently surpass all other sectors. Unlike in Gauteng, construction in the region is at rock bottom. As a result, Botha says long haul has accounted for about 95% of the initial sales volumes thus far. The story is the same in Namibia as well,

where Clifford Marchbank, GM Namibia at Scania South Africa, indicates that long haul has accounted for the majority of early sales, with almost 80% of the vehicles sold thus far going into the sector. “Construction and mining are in the doldrums here,” he says. Marius Steenkamp, GM Cape Town at Scania South Africa, says focus has also been largely placed on long haul in the region. “We have taken a decision that long haul will be our major focus area for this year, and the sector currently constitutes between 60 and 70% of our total sales of the new vehicle. However, we have also done well in distribution, which constitutes

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