Improved Drilling Controls Through Forecasting - SME Annual Meeting 2024

Larger mines spend millions of dollars annually on rock drilling tools, but often purchase based on historic consumption. The results vary from excess inventory to acute tools shortages. These lead to emergency sourcing, sometimes mixing products that don’t perform optimally. Boart Longyear analyzed the usage pattern of 96 thousand drill bits at thirteen different underground mining contracts, showing very high variability. The monthly standard deviation on a product level was 42%, with the highest for development and low volume bits. A new rule of thumb is suggested to carry only one month of safety stock for high volume bits, but increase to three months for low volume bits. This balance will reduce the risk of outages with less inventory. The accuracy can be improved by considering the specific conditions at each mine and reclassifying individual bits for a different safety stock level. Root cause analysis and collaborative forecasting between mines and suppliers can lead to further optimization of availability and inventory levels.