Presentation is loading. Please wait.

Presentation is loading. Please wait.

Mission 1 Billion : The challenges ahead

Similar presentations


Presentation on theme: "Mission 1 Billion : The challenges ahead"— Presentation transcript:

1 Mission 1 Billion : The challenges ahead
An equipment manufacturer’s perspective LARSEN & TOUBRO A.K. Datta, Zonal Manager Larsen & Toubro Ltd, Mumbai January 20, 2015, New Delhi

2 Contents Introduction : L&T , Komatsu Komatsu Product Range
After Sales Support Network of L&T Our presence in Coal PSUs CIL Tenders : Current Scenario & Our Suggestions The way forward This is our global sales and service network. Komatsu's local subsidiaries and liaison offices worldwide engage in manufacturing, sales and service of construction and mining equipment. Nearly 400 distributors and dealers contribute to the sales and service of Komatsu equipment. With this global sales and service network, Komatsu makes the utmost effort to respond to customer's needs through global teamwork.

3 Construction & Mining Business L&T Construction Equipment Ltd (LTCEL)
Introduction : Larsen & Toubro CMB Hydrocarbon Heavy Engineering L&T Construction Power Information Technology Electrical & Automation Ship Building Railway Projects Financial Services Machinery & Industrial Products LARSEN & TOUBRO It’s all about Imagineering Sales Turnover Rs 85,889 Cr # PBIT Rs 7,489 Cr # Employees 67,828 * Henning Holck-Larsen ( – ) Soren Kristian Toubro ( – ) Construction & Mining Business Two Danish Visionaries An Engineering Behemoth A journey of 77 years… > 50 Years Experience L&T Construction Equipment Ltd (LTCEL) Bangalore, Karnataka KOMATSU INDIA PVT. LTD Chennai, T.N DUMP TRUCKS HD465  60 Ton Class HD785  100 Ton Class HYDRAULIC EXCAVATORS PC71 | PC130 | PC210 PC300 | PC450 | 300CK # FY1314, * As on March 31, 2014

4 Introduction : Komatsu
Established on May 13, 1921 Sales : USD Billion (FY1314) Employees : 47,208 This is our global sales and service network. Komatsu's local subsidiaries and liaison offices worldwide engage in manufacturing, sales and service of construction and mining equipment. Nearly 400 distributors and dealers contribute to the sales and service of Komatsu equipment. With this global sales and service network, Komatsu makes the utmost effort to respond to customer's needs through global teamwork. Affiliates Liaison & Regional Offices Distributors

5 Komatsu Product Range Tables denote Mining Equipment HP HP Model
Operating WEIGHT BKT CuM PC8000 720 42 PC5500 515 29 PC4000 385 22 PC3000 253 15 PC2000 200 12 PC1250 110 6.5 PC800 80 4.5 Model Flywheel HP D575 1150 D475 899 D375 636 D275 452 D155 360 Model Payload TON 960E 360 930E 320 830E 240 730E 190 HD1500 150 HD785 100 HD465 60 Model BKT CuM WA1200 20.0 WA900 13.0 WA800 12.3 WA700 8.7 WA600 6.4 WA500 5.2 WA470 3.9 Model Flywheel HP Blade CuM WD420 224 3.1 WD500 315 5.1 WD600 585 8 ~ 22.5 WD900 853 34 Model Flywheel HP Blade M GD705 200 4.3 GD825 280 4.8 Tables denote Mining Equipment

6 Product Support : Infrastructure
Tamil Nadu Kerala Goa Karnataka Maharashtra Jammu and Kashmir Gujarat Rajasthan Haryana Punjab Himachal Pradesh Uttaranchal Uttar Pradesh Madhya Bihar Jharkhand Chhattishgarh Andhra Orissa West Bengal Sikkim Assam Arunachal Nagaland Manipur Mizoram Tripura Meghalaya Bhutan 5 fully equipped Service Stations Pan India Coverage Specialized Service Training Testing Facilities Durgapur Bahadurgarh Value added services Preventive Maintenance Clinics Annual / Full Maintenance Contracts Site Support Agreements On site Workshops Assy. Exchange Program Component Repairs RECON / REMAN Pune Nagpur Spare Parts Support Central Ware house – Planning, procurement & stocking of parts Stocking points at 22 territories mainly for insurance parts. Parts inventory at customer sites Kanchipuram Pan India Coverage

7 Best-in-class Support Infrastructure
Product Support : Facilities Dump Truck Overhaul Engine Repair Bay Crankshaft Grinding Machine Hydraulic Repair bay Dozer Overhauling Best-in-class Support Infrastructure Hydraulic Test Bench

8 Rich experience in executing MARC & SSA
Major MARC and SSA Projects MARC Sites NCL Singraui 59 | 48 Tata,NM,JD,WB 26 | 29 SSA Sites HZL, DECO 45 | 35 HZL, DECO 31 | 62 (Machines | Manpower) BCCL 18| 8 EMTA Pakur 79 | 69 SHREE, Beawar 7 | 25 Rungta 12| 1 Ultratech, KOT 14 | 17 EMTA, GRB, BRJ 9 | 11 Adani (A&M) 4 | 4 EMTA, Tara, BRJA 52 | 47 Lafarge,Sonadih 3 | 6 PLR, Sar 8 | 3 SAIL 15 | 5 PLR, BKD 4 | 3 Holcim, BTPRA 16 | 13 ESSEL (BCML) 4 | 13 HINDALCO 3 | 8 Holcim, Chanda 8 | 10 EMTA, Baranj 64 | 77 SECL, Dpk, Gvr 9 | 10 Rich experience in executing MARC & SSA Ultratech, Gul 1 | 2 Holcim, Maratha 6 | 11 SCCL, Manuguru 27 | 5 Dorajiya, Wani 5 | 1 SCCL, RMGDM 28 | 7 MARC : 497 m/c, 535 men at 52 sites SSA : 62 m/c, 37 men at 8 sites SHREE, Raipur 1 | 3 Dalmia, Trichy 12 | 10 MARC : Maintenance & Repair Contract; SSA : Site Support Agreement

9 Our association with Coal PSUs… Equipment supplied
Model Machine Type Total 25 58 05 114 202 59 11 13 24 02 07 04 01 09 06 26 10 20 64 73 89 81 63 426 69 84 70 74 149 189 741 SECL NCL MCL ECL BCCL CCL WCL SCCL HD T Dump Truck HD465 60T Dump Truck D HP Dozer GD HP Motor Grader WA Cu.m FEL WA Cu.m FEL PC Cu.m Hyd Excavator PC Cu.m Hyd Excavator 300CK 4.0 Cu.m Hyd Excavator Equipment supplied as on ; include orders under execution

10 2 19 Coal Mining… with a difference CIL People Facilities Availability
Knowledge Mining Equipment Facilities People Mission 1 Billion Tonnes !!! Availability Productivity Guaranteed Parts Consumption Safety Features Environment Friendly Operator Comfort After-sales Support Revamp equipment evaluation & selection criteria Superior equipment performance – key to success

11 This is the time to embrace the change
Mining Equipment Manufacturer : Concerns Equipment performance is the backbone of any mining company In India, as compared to global standards, the following parameters have a lot of scope for improvement Equipment availability Equipment utilization Operators’ skill Maintenance practices Respect for safety and environment, etc With the advent of ICT*, the above have become easy to monitor The challenge for CIL is to incorporate such superior features in the NIT scope and evaluation process Such steps shall contribute towards improving equipment utilization, thereby leading to enhanced productivity. * Information & Communication Technology This is the time to embrace the change

12 CIL Tenders : Current scenario & our suggestions
TECHNICAL Current Scenario Our suggestion Qualification criteria are extremely broad-based Deficiency : No weightage for technical superiority Discourages participation by manufacturers of equipment with advanced / latest features Re-introduce Technical Merit Rating (TMR) system with adjusted bid price mechanism The earlier system of disqualification under TMR, may be done away with Calls for Availability Guarantee (AG) of 1 - 3 years Deficiency : Does not value reliability over a longer period of equipment life Does not reward higher AG achievement AG for atleast 50% period of the economic life of the equipment Better rating for AG over & above NIT Enlarging participation cannot be the guiding factor for equipment procurement

13 CIL Tenders : Current scenario & our suggestions
TECHNICAL Current Scenario Our suggestion No weightage is given for user's past experience with the quoted models Deficiency : Achievement of AG for the stipulated period (as per PO) is considered sufficient for proven-ness Low equipment utilization shields poor equipment performance, if any, even if AG is formally achieved No mechanism to bring post-AG period experience for evaluation Introduce : a. MTBF (measure of equipment reliability) b. MTTR (measure of after-sales support strength) The above tools can be used to monitor equipment performance for its lifetime can form as input for evaluation of similar equipment for subsequent tenders 2. In case of below-par past performance of the quoted model : Demand higher amount of PBG (Phase # 1) Disqualification of the equipment model unless the problem areas are rectified & proven (Phase # 2) Guaranteed Parts Consumption Deficiency : Unused inventory Tedious record keeping Thus, no specific benefit to CIL Introduce ‘Cost Cap’ for spare parts. Generates more value proposition for buyer & seller; win-win situation MTBF : Mean Time Between Failure; MTTR : Mean Time To Repair Expand proven-ness criteria : MTBF, MTTR alongwith AG

14 CIL Tenders : Current scenario & our suggestions
SAFETY, ENVIRONMENT & OPERATOR COMFORT Current Scenario Our suggestion Has scope of improvement for inclusion of safety & environment-friendly features Latest safety standards & environment friendly features (e.g. better emission norms, higher oil change interval etc) should be included in NIT No weightage for features aiding operator comfort Deficiency : Ignores the fact that operator comfort is key for equipment utilization, productivity & fuel consumption Latest standards on operator comfort should be included in NIT AFTER-SALES PRODUCT SUPPORT Fails to fully utilize the after-sales support capabilities of manufacturers Deficiency : Duplication of infrastructure at projects Deprived of latest maintenance and continuous improvement practices Introduce rating system (based on MTTR) for after-sales support capabilities Opt for long-term MARC to ensure best performance for the entire economic life of the equipment MTTR : Mean Time To Repair; MARC : Maintenance & Repair Contract Expand the horizon of evaluation by including other important elements

15 CIL Tenders : Current scenario & our suggestions
COMMERCIAL Current Scenario Our suggestion Successful bidder is selected only on L1 basis Deficiency : Discourage manufacturers of quality equipment to seriously participate in tenders Deprives CIL of latest technologies and its benefits to improve productivity & reduce cost of production Successful bidder should be determined by adjusted bid price mechanism This adjustment should be based on Technical Merit Score (which should be re-introduced) and should consist of the following : Technical features, especially those aiding production & safety AG, over & above NIT norm After-sales support capabilities 100% order on L1 bidder Deficiency : Longer lead time for supply of the entire fleet Discourages competition Distribution of order between L1 and L2. Will benefit CIL by : Shortening of lead time Keeping healthy competition amongst suppliers Create a level playing field for fair competition

16 CIL Tenders : Current scenario & our suggestions
OB/COAL OUTSOURCING TENDERS Current Scenario Our suggestion Low duration of outsourcing contracts; generally 3 or 4 years Increase the contract duration to 8 ~ 10 years Illustration : 100T Dump Truck Depreciation Cost (Rs / Hour) Current tenders are silent on minimum size of equipment or specify very low sizes Clearly mention the minimum size of equipment as per the volume of OB / Coal to be handled / year No incentive for exceeding performance parameters Incentivize higher OB / Coal production over the contracted quantities Enable contractors to serve CIL better

17 Cost / BCM : An illustration …
100 Ton Dump Truck Note : The above is for illustration purposes only & should not be taken as any form of guarantee * Indicative for 1.5 km lead & 20 m lift haul road profile

18 The way forward… Radical change in tender norms & evaluation criteria
Re-introduce Technical Merit Rating (TMR) system, incorporating the following : Technical features, especially those aiding production & safety AG, over & above NIT norm After-sales support capabilities Successful bidder should be determined by Adjusted Price Bid Mechanism, based on the above TMR Constitute a Steering Committee to look into revamping the tender norms & evaluation criteria.

19 Thank You Thank You


Download ppt "Mission 1 Billion : The challenges ahead"

Similar presentations


Ads by Google