TY - GEN
T1 - Bottleneck analysis for single source mining model using grids
AU - Richards, S. A.
AU - Schafrik, S. J.
AU - Faulkner, T.
PY - 2016
Y1 - 2016
N2 - Classic engineering economics provides the mining engineer with a fundamental approach to choosing between capital spending alternatives. This approach has been heavily used over the years and is an accepted technique for most investment decisions. There is a shortcoming that I have run into over the 15 year period when I worked in business planning roles. The classic time value of money approaches such as Net Present Value, Return on Investment, and Internal Rate of Return provide good estimates, but the input assumptions may fall short of describing the real material differences required by these analysis techniques, if the cost benefit analysis is defined solely on the improvement of the item being replaced or improved, the true profitability of the decision may be overestimated. Productivity improvement based capital projects can yield more accurate forecasts when conducted in concert with a "bottleneck analysis".
AB - Classic engineering economics provides the mining engineer with a fundamental approach to choosing between capital spending alternatives. This approach has been heavily used over the years and is an accepted technique for most investment decisions. There is a shortcoming that I have run into over the 15 year period when I worked in business planning roles. The classic time value of money approaches such as Net Present Value, Return on Investment, and Internal Rate of Return provide good estimates, but the input assumptions may fall short of describing the real material differences required by these analysis techniques, if the cost benefit analysis is defined solely on the improvement of the item being replaced or improved, the true profitability of the decision may be overestimated. Productivity improvement based capital projects can yield more accurate forecasts when conducted in concert with a "bottleneck analysis".
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M3 - Conference contribution
AN - SCOPUS:84988353112
T3 - 2016 SME Annual Conference and Expo: The Future for Mining in a Data-Driven World
SP - 803
EP - 806
BT - 2016 SME Annual Conference and Expo
Y2 - 21 February 2016 through 24 February 2016
ER -