University of Johannesburg Department of Mechanical Engineering Maintenance Engineering: Dr Jasper L.

Coetzee Research Proposal: M Eng (Mechanical) Maintenance Engineering Title of dissertation: Framework for monitoring continuous performance of outsourced supply, repair and maintenance of a mobile equipment fleet.. Student: Registration number: Study Leader: Co-leader: Starting date: Joe Student xxxxxxxxx Dr J.L. Coetzee Dr J. Pretorius March 2005

Purpose/Description of problem The trackless production loaders at Company A Lekkerdraai Mine consisted of a number of Wagner LHDs. In 1999 the machines were due for replacement and a tender request was issued to suppliers of such equipment. The offers received were adjudicated and a decision to proceed with the procurement of LHDs from Sandvik Mining and Construction (SMC) was made on the basis of lowest overall cost of ownership and their ability to offer a repair and maintenance (R&M) contract to the mine. This initial supply, repair and maintenance contract involved 6 Toro 0010 LHDs. Since the initial supply of Toro LHDs by SMC, the R&M contract was gradually expanded as SMC successfully offered more replacement equipment to the mine, such as drill rigs and dump trucks. Today the R&M fleet on mine consist of 56 machines. Whereas the original replacement decision of Wagner LHDs versus alternative suppliers products could be justified by a challenger / defender model of evaluation, the current scenario requires a different type of analysis to determine the value of the relationship between Finsch Mine and SMC. Finsch Mine is offered preferred prices on procurement of machines as well as on parts, while the mine is also benefiting on guaranteed availability and on site OEM expertise through the R&M contract. The difficulty however lies in quantifying these benefits on an ongoing basis, and forms the basis of this research dissertation. Areas to be evaluated are quantifying the benefits of the relationship, and will require research into logistic and supply, maintenance practices, equipment productivity, and machine and fleet life cycle costing. Bringing all these factors together into a balanced scorecard will be the overall outcome. Research Strategy a. Program

The following general program steps are proposed for consideration: Detailed development of the definition of the problem. Literature study - an extensive literature study into the problem area. This study will also strive to identify the latest developments and thinking in evaluating the performance of outsourced repair and maintenance work and the application of economic life determination and life cycle costing as applicable to mobile machinery. Development of the research model or solution to the problem studied from basic principles, taking into account the knowledge gained through the literature study. This will include detailed investigations into the composition and validity of each of the proposed components of the new model and/or solution. Testing of the model or solution on the Lekkerdraai Mine scenario. b. Dissertation The proposed table of contents of the mini dissertation is as follows: 1. 2. 3. Summary Problem definition Literature survey a. Life cycle costing models and its application to equipment replacement decision making b. Measures of effectiveness in maintenance engineering c. Overall Equipment Effectiveness Solution development: a. A conceptual balanced scorecard framework b. Validity of components c. Application structure and methods d. Organisational issues Solution testing: a. Description of test situation b. Actual test results c. Comparison of results d. Results verification Conclusion a. Critical assessment of results b. Recommendations c. Further research possibilities in this area

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c. Schedule Chapter 2: First iteration 15 March Second iteration 29 March Chapter 3: 10 May Chapter 4: 07 June Chapter 5: 05 July

Chapter 6: 26 July Chapter 1: 10 August Complete dissertation: 31 August