Case Study of Iron Ore Value Chain Optimisation

The consideration of complex supply chains often highlights multiple system bottlenecks that are localised and dynamic – they shift depending on what variability last influenced the system. Using the understanding of a dynamic system model, synergies between items that tackle localised bottlenecks can be understood to generate a suite of solutions. These can be simple solutions, such as a couple of new conveyors placed in series, or more complex ones, including buffer dynamics (capacity, location, behaviour, etc).Each solution in the suite will have an associated uplift in system performance and an associated cost of implementation. Dynamic simulations can address each situation in turn and estimate the projected improvement it would offer. However, these solutions will have different benefits when implemented together, and each solution will give different uplift depending on what other solutions have already been assumed. If the number of solutions is numerous, traditional dynamic simulation analysis becomes the bottleneck, limiting options analysis to the processing power available.This paper will illustrate the use of a new technique applied as part of a capital growth optimisation project with a major iron ore producer. Metamodelling is the creation of a model of a model; in this case study, the focus is on developing a response surface representing the suite of solutions. This can be achieved through a combination of dynamic modelling and an appropriate mathematical process called design of experiments. The result is an approximation surface of the outcomes of the dynamic model, encapsulating interactions between key elements of the value chain.This modelling approach provides a number of advantages compared to traditional dynamic modelling approaches, including but not limited to:early and rapid evaluation of a large range of potential solutionsaccommodation of multiple initial states of the value chainoptimisation of the overall suite of upgrades (down to route-level upgrades) based on business objectiveseasy re-evaluation of outcomes when key inputs such as costs change.CITATION:Kleinschmidt, T, Foo, J, Reynolds, B and Kennewell, K, 2015. Case study of iron ore value chain optimisation, in Proceedings Iron Ore 2015, pp 605–612 (The Australasian Institute of Mining and Metallurgy: Melbourne).