In a marked departure from talking about yellow iron, Caterpillar will focus on technology and corporate and dealer site support at MINExpo (booth 6229) and in the marketplace. As the mining industry continues to languish in a longest-lasting slump, the manufacturer has responded by focusing less on on new product introductions and more on how to upgrade existing equipment to improve total cost of ownership (TCO).
“We’re in an environment that is very competitive and very challenging,” says Denise Johnson, Caterpillar group president for Resources Industries. She notes that current business conditions have sparked changes to the company’s approach to the market. “We are looking ahead and translating our actions in ways that will make us more relevant to the market.”
Aggregates Manager reports, while this led to the company’s exit from the room and pillar mining and track drill markets – along with the closure of some facilities – it has also enabled the manufacturer to focus its resources on other aspects of its product portfolio and to boost its investment in research and development. Cat remains committed to the mining market, Johnson stresses, emphasizing, “We believe in mining for the long run.”
“The challenge of leadership is how to manage taking the appropriate steps when you’re in a down cycle,” notes Tom Bluth, Cat vice president for Surface Mining and Technology. The goal is to help customers now while continuing to prepare for the future. “We’re pivoting,” he adds. “We are putting energy into increasing efficiency of existing fleets.”
“We felt it was important for us to focus our resources on the other aspects of our product portfolio and invest in our research and development,” Johnson says. “We will outpace our competitors in R&D investment. We are being more intentional and focused in that arena. The largest percentage of our R&D is in digital. We are planning to win in this space.”
Technology
Cat is leveraging its robust experience in data capture and analysis to help it shape the next evolution. Unlike the automobile industry, where automation begins with certain key features and continues to evolve, Caterpillar is working that theory in reverse. “We created the fully autonomous truck and are starting to unbundle it,” says Jim Hawkins, mining technology director.
Operators can operate dozer from a remote location using Cat Command.
Cat Command technology allows for options ranging from remote control systems for dozing and underground to semi-autonomous systems for drilling, dozing, and underground to autonomous for hauling, drilling, and underground equipment.
Hauling automation was put to the test at Fortescue Metals Group’s Solomon Hub operation in western Australia. There a fleet of 47 Cat 793F trucks uses Command for Hauling. Cat says the site is the largest autonomous mine in the world with the largest autonomous fleet at one site. Improved process consistency led to a 20-percent production increase over manned trucks. The fleet now handles more than 70 percent of production haulage at the mine.
“When it comes to software, there’s no better way than working with the customers at their sites,” Hawkins says. “We are a far more agile company in the area of technology than we ever have been in the past and will continue to become more agile in the future.”
A display inside the cab can show objects in what could otherwise be blind spots.
Technology is also at work to improve process control for tasks such as truck spotting, while scaled technology offerings are available in underground loading; surface drilling, loading, and grading; and fleet management. Detection systems include brand agnostic object detection systems, proximity awareness technology, and driver fatigue management.
While production is certainly a high priority, automation is also yielding big improvements in terms of site safety. “We have seen an order of magnitude of improvement on accidents and near misses,” Hawkins says.
Total cost of ownership
Another part of Cat’s strategy to improve efficiency is getting closer to its customers. The company has partnered with the University of Arizona to create a 12-month executive level mining curriculum to ensure its graduates know mining from a practical viewpoint rather than simply viewing the industry from a behind-the-desk perspective.
“This isn’t a one-shot deal. It will be ongoing,” says Steve Berkebile, director of surface mining. “We view these jobs as key development jobs for future leaders at Cat Global.”
Corporate employees will be trained to function as site performance managers who can work alongside dealer site managers to work through critical issues at an operation.
Johnson says site performance managers will be measured by the metrics of the mines themselves. “Our success is measured by the success of our customers,” she explains. Key performance indicators such as uptime and production will determine how site managers are rewarded.
Bluth described a scenario where site managers could work like “groups of SWAT teams we can parachute in for six to eight weeks for various projects.”
By blending technology advancements, domain expertise, and site-specific expertise when needed, Cat hopes to create an additional value stream for its customers. The push-pull dynamic created by operators who are pressured on the cost side, coupled with lower technology costs make Cat’s timing logical. “It’s not technology for technology’s sake,” Bluth explains, “but what it can do for a customer’s bottom line.”
