Vale: Data the key to digital transformation strategy

Access to reliable data is the key to improving efficiency and implementing a digital transformation plan, according to Brazilian mining giant Vale.

Vale has been implementing a digital transformation plan since 2014 with the aim of boosting productivity and reducing costs.

According to Vale's IT systems manager, Marcelo Baltar, (pictured), when hit with crises, such as low commodities prices in the case of mining, companies often start by cutting personnel, which is the wrong approach.

"Cutting staff was not a relevant part of our strategy, perhaps 1% of our business case. The biggest savings we've seen have been in changing our processes, the way we planned and used information to understand our business and then plan our production, our value chain," Baltar told BNamericas.

According to Baltar, once you have access to data and can run analytics algorithms there are multiple ways to cut costs by looking at things like tire optimization, diesel consumption, conveyor belt use and maintenance.

Vale deployed Siemens' Manufacturing Execution System (MES) for component integration and ensuring production optimization across all global facilities.

"We integrate all of our departments to get a better insight into all processes. "You need reliable data, which comes from dispatch systems, sensors, from the historical database."

The MES is part of the Siemens PLM Software Manufacturing Operations Management (MOM), a solution that supports the value chain from product development through production planning, production engineering and production execution to service.

"The whole world is going to data. Having data available provides a lot of value and improves your ability to take better decisions. The best way to lower costs is by increasing productivity," Gustavo Jaramillo, mining manager at Siemens Chile told BNamericas.

"Our technology is based on the software, the cloud and big data. Through horizontal integration you can coordinate and integrate the different engineering phases, provide predictive maintenance and increase productivity," Jaramillo added.

Vale also implemented technology to access mine sites remotely from control centers.

The company is aiming to see savings of US$7.2mn from now to 2020 from its digital transformation process.

Looking ahead, the company is looking at deploying augmented reality solutions in manufacturing plants and autonomous vehicles.

Jaramillo said the recent slump in metals prices drove most mining companies to set up departments dedicated to digital transformation.

Siemens' has three main focuses with its mining strategy: electrification, automation and digitalization with a main focus on the latter two.