This document describes Metso's Life Cycle Services programs for aggregates customers. It outlines three progressive program levels - Equipment Support, Maintenance, and Maintenance & Optimization - that provide customized solutions matching different customer needs. The programs are designed to increase profitability, improve cash flow, ensure high equipment reliability and availability, and optimize production processes. Examples of three scenarios illustrate how different Metso Life Cycle Services programs could address specific challenges for a quarry owner, regional aggregates producer, and large stationary plant.
Good afternoon everyone, my name is Caroline Lecomte and I will present Metso’s new Life Cycle Services for the aggregates industry.
We will look at how Metso has developed new Life Cycle Services PROGRAMS that are customizable to meet the aims, challenges and different type of applications of the Aggegates industry.
We will look at how the Life Cycle Services bring Metso’s people, expertise and solutions together to help lower your risks while helping you achieve your objectives.
Thanks to the 100 years of successful collaborations and serving aggregates customers from all corners of the world, we understand at Metso the challenges you are facing today when trying to achieve better efficiency, to produce more and better with less resources, or to ensure safety and best practices while remaining profitable and of course, competitive on your market.
The service portfolio of Metso and partners is very comprehensive.
We design, manufacture and supply the essentials elements for the production of high quality aggregates.
We help our customers ensure higher reliability of their equipment through installation, maintenance and process control services performed by highly qualified and experienced specialists with more than 39 service centers, and 150 distributors and partners, serving customers in over 120 countries.
Our local and global experts will also provide refurbishment, upgrades, evaluations and a wide range of optimization services to help our customers achieve higher performance.
On top of that, Metso has now designed three Life Cycle Services programs that bring the right combination of essentials, reliability and performance services together to help our Aggregates customers increase their profitability.
Just like any great recipe, the quality of the ingredients (our service elements), how we mix them together (the way we build our programs) and the little personal touch (how we customize them to your specifics) make a great difference and bring the best results.
Metso has therefore designed three customizable Life Cycle Service programs.
The scope of each program builds on the one preceding it.
Program 1 Equipment Support Services takes care of your equipment with:
Scheduled inspections by certified experts and highest extended warranty coverage
Wears and spares delivery plan and guaranteed lead times
Metso Fleet Management (where key data from your equipment is transmitted via satellite and accessible from a secured portal to help keep track of your equipment performance and life cycle services)
The Equipment Support Services will help you reduce your spare and wear parts costs and lower the financial risks associated with unplanned shutdowns for maintenance.
Program 2 provides the same services and benefits as Program 1 while ensuring the reliability of your equipment through:
Developing the right maintenance strategy and plan and adapting it as needed over time and changes in your operation
Performing preventive maintenance visits during which our experts will follow planned guidelines to detect and correct incipient failures before they can develop into breakdowns.
Consign and make available for you the spares and wear parts that are planned in the annual maintenance plan. I will tell you more about the advantages of stock consignment for you in a few minutes.
In Program 2, Metso is also doing the actual replacement of wear parts for you.
Program 2 is designed to help you reduce your parts inventory and maintenance cost.
The third program is focused on optimising the performance of your process and the quality of your outputs.
In this program, not only do we provide all the services and benefits of programs 1 & 2, but We will also :
manage your entire maintenance with our own Maintenance Management System
optimize your liner wear performance and change rate
Have our process experts implement the right solution to optimize your crusher performance
And help you monitor your KPI’s
Program 3 is really about reaching and sustaining high performance that is profitable for you.
All three programs also give you the possibility:
- to finance new equipment with competitive leasing programs
to adapt the commercial terms of the LCS contract to your needs and constraints
In times of CAPEX reduction everywhere, Metso equipment financing solutions allow you to get quicker and easier access to new equipment that will provide higher performance as your activity changes and grows.
The different leasing solutions with monthly rents will help you better manage and improve your cash flow and choosing the duration and options for when your leasing contract will end.
As part of every Life Cycle Services, Metso also proposes different payment plans to help you keep control and predict your operation costs. We propose Cost per Ton plans tied to your production and help you achieve your production and financial goals.
On top of this, all Metso Life Cycle Services programs include the Metrics Services to help you easily have access to numerous key information and realize the savings and gains you are making with the program.
A small modem is installed on your equipment transmits operation information via satellite to Metso Metrics secured portal.
Key operating data dashboards and reports
Operation and alarm information
Equipment location
Maintenance programs and log book
such as machine hours, utilization rates, fuel consumption, alarms log, parameter changes, and location are all key information that help the Customer better manage his equipment.
As part of the life cycle services programs, Metso is also proposing to consign the inventory of your parts
for single or multiple sites.
This will help you
Maximize the warranty on your equipment with OEM spares and wear parts
Optimize the time for parts replacement with planned and quick deliveries
Also, and very important, accounting wise, in stock consignment, the ownership of the part is transferred only to your accounts receivables at its actual use, keeping the risk and responsibility on Metso and its partners instead of you.
As mentioned, all these 3 Life cycle services programs build on the previous one and are customizable to the specifics of your operations to provide key benefits for you:
Lowering financial risks and costs
Increasing reliability of your equipment
Reaching higher performance and sustaining it over time
And with the commercial terms and leasing solutions, help you optimize your cashflow and remain profitable
We will now look at three scenarios to give you examples of how our LCS programs can be customized to meet different challenges and what benefits they provide.
In scenario 1, we will see how a quarry owner who needs to replace a mobile crusher can still his cashflow positive.
In scenario 2, a regional aggregates producer looking for a solution to maintain the performance and reliability of his fleet is capable of keeping costs as low as possible with the right LCS program in place.
In scenario 3, a large stationary plant manager is given a very short time frame to achieve new KPIs in order to get more yield from the operation.
So in this first example, the quarry owner wants to replace his old crusher with a new Metso LT120 while improving cashflow.
Our local Metso team proposes the LCS program 1, equipment support services in which is included financial leasing of the Lokotrack over a period of 60 months, together with two inspections a year and planned and guaranteed delivery of wear parts.
The customer signs the LCS contract but starts paying his monthly fee only once the new Lokotrack is commissioned at his site, a few weeks later.
From Day 1, the customer can enjoy positive impact on cash flow.
In our second scenario, an aggregate producer needs to find the right strategy to control and better manage the maintenance costs of his fleet located at 6 different sites in a same region.
Together with the customer, our local Metso partner define a maintenance strategy and opt for the LCS program 2 in one single contract and monthly fee covering all the 6 sites in order to optimize the maintenance costs, anticipating the shutdowns for preventive maintenance and having Metso to take care of wear parts consignment and replacement for all the crushers.
The LCS solution in place allows for cost-efficiency, reliability of equipment and improved cashflow with adapted monthly payment plans and reduced inventory.
The challenge in this third scenario is to improve the end product quality and quantity as new KPI’s and short time frame are given to a large stationary plant manager.
Metso local team, together with the global process experts analyze the process with the customer and identify the bottlenecks and rooms for improvements. Together, they select the LCS program 3 and prepare a detailed program aligned to the new KPI’s, with focus on debottlenecking and optimizing the crushing stages during the first year in order to respect the timeline.
Two major initiatives were implemented to improve the process:
1- liner wear optimization …
2- advanced process control with Metso VisioRock™ to result in improved end product quality and increased throughput for the customer.
The LCS program is monitored and reviewed annually together with the customer to continuously improve and optimize the performance.
When new equipment or equipment renewal appears to be the right choice for optimization, the LCS contract can be reviewed at any time to include a financial solution and evolve over time.
LCS brings together Metso’s people, expertise and solutions to help you:
Lower your risks
Reduce the total cost of equipment ownership
Decide on KPI’s that matter to you, monitor them and achieve higher performance.
And Link what we guaranty to bonus and penalty clauses so that our Life Cycle Services contribute to increasing your operations profitability.
We trust that this introduction will raise your interest and we will be happy to answer your questions for the next 15 minutes and meet with you to discuss your specific needs and how Metso Life Cycle Services can help you achieve your goals.
Thank you!