Norilsk Nickel Group
OVER $1 Million USD SAVED ON FUEL COSTS PER MONTH WITH OMNICOMM.Norilsk Nickel Group is the world’s largest producer of nickel and palladium, and one of the world’s leading producers of platinum and copper. Operations of the Group are located on three continents: Europe, Australia, and Africa, in five countries: Russia, Finland, Australia, Botswana and South Africa.
THE OMNICOMM SOLUTION GOT NORILSK NICKEL’S FUEL MANAGEMENT COMPLETELY UNDER CONTROLAt Norilsk Nickel more than 5,000 vehicles are involved in the extraction of nickel ore. Special equipment, such as locomotives, river tugs and harvesters are used on the ground and in the mines, on the rivers and in the sea. Day to day operation engages a large number of transport units and requires huge amount of fuel for delivery to the river basins during the short summer period. In order to obtain detailed monitoring of equipment and maximize fuel control and efficiencies – senior management made the decision to equip Norilsk Nickel fleet with special monitoring systems.
REQUIREMENTS FOR FLEET MANAGEMENT EQUIPMENTNorilsk is known for its harsh northern climate. Control and management of the company’s extensive fleet is complicated due to tough weather conditions. Therefore a basic requirement for the monitoring equipment was strong reliability and excellent performance in extreme conditions.
Norilsk needed a fuel management solution that offered:
Determination of effective fuel load for each piece of equipment
Precise definition of fuel consumption during a shift
Timely re-fueling of transport and its maintenance
A single solution for monitoring of all types of vehicles
TEST INSTALLATIONTo evaluate Omnicomm’s value, test installations of the Omnicomm monitoring system were carried out on a multi-purpose off roader, located in a hard to reach area. With the installation of the Omnicomm solution, fuel consumption was reined in and under control. Since there is no one to buy fuel in the tundra and the factual fuel consumption rate is low, the Omnicomm system did not allow the drivers to top-up on a full scale. Thus, based solely on test installations, it was possible to identify and address the problem of drivers colluding with operators of fuel filling stations and eliminate false data reports on top-ups.
COMPARATIVE TESTSThe OmniComm results were compared with comparative tests with competing solutions over several months of testing. Several different transport units – trucks, bulldozers, diesels – were tested and the results compared. During the installation of fleet management equipment competing solutions faced a number of challenges and difficulties, unlike the Omnicomm team. As a result of a series of tests carried out by Norilsk Nickel specialists, Omnicomm fuel consumption control and transport monitoring system was chosen. In 2013 Norilsk Nickel completed the first stage of Omnicomm equipment installation aimed at cost optimization of the transport company. Over two months our Omnicomm fuel monitoring system was rolled out on the first 800 pieces of equipment, this work being performed on a “turnkey” basis. By the end of 2013 over 2,000 various transportation units were fully fitted with the Omnicomm solution.
WHY OMNICOMMSpecific results reached after installation of Omnicomm equipment :
Only two Omnicomm systems were rejected in course of equipment installation – comprising less than 0.001% of supply scope.
Correctness of readings on fuel is very high – the measurement error not exceeding 1%
After installation Omnicomm specialists performed control measurements to ensure correctness of fuel readings. Provided they were choosing transportation items at random – all the equipment showed accurate data.
The fuel monitoring system was successfully installed on different types of vehicles: LCV transport, as well as on special vehicles such as ATVs, tankers, locomotives. All the vehicles were equipped with Omnicomm LLS fuel level sensors, while some equipment was also fitted with Omnicomm onboard terminals and Omnicomm Online software for data processing.
ECONOMIC EFFICIENCIES ATTAINED AFTER THE FIRST TWO MONTHS OF USE
Reduction of the cost of diesel fuel by $1 million USD monthly.
The amount of savings in the first month exceeded the cost of all Omnicomm equipment.
The company managed to increase operational efficiency through greater control over the employee labour, as well as eliminate downtime and improve discipline of the staff.
“Omnicomm equipment showed really good results and we are considering this company’s proposal to equip other fleets of Norilsk Nickel. We have conducted navigation without fuel control for a long time, and its economic outcomes are indeed costly. Applying fuel sensors gave huge economic effect. Besides, with Omnicomm system in operation every employee now knows – fleet management is a real necessity for an effectively running enterprise, and all violations will be prosecuted. We are ready to consider other Omnicomm software products such as site analysis, operational planning and vehicle comparisons as well. Cooperation with this partner brings confidence in results; the company specialists guarantee quality, speed of installation and further operation.”
– D. VORONOV, Head of Transport and Maintenance, Norilsk Nickel Group – Polar Division