data reconciliation and operational accounting · data reconciliation and operational accounting...

Data Reconciliation and Operational AccountingLuis Yacher S.CONTAC

Operational Accounting

Sigmafine Users ConferenceSan Francisco, April 26, 2010

Sigmafine User Conference – San Francisco April 26, 2010© Copyright 2010, Visiant Pimsoft Inc. All rights reserved. 1

CONTACOperational Information Systems in the mining industrysty

Product and Services for

XSTRATA+ANGLO CollahuasiBHP EscondidaBHP Spence

Product and Services for Process Control, Automation and

Industrial Information S t

pCodelco –CorporateBarrick ZaldívarAMSA El TesoroAMSA Los PelambresXSTRATA Altonorte Smelter

SystemsExperience

+25 years, 70 personsXSTRATA Altonorte SmelterXSTRATA Lomas BayasSouthern - Perú (Cuajone-Toquepala)Antamina – PerúBarrick – Pierina Perú

y , pIndustrial IT, Process Control & Automation, Operational Information SystemsMining (the most); P&P,

Lafarge Cemento MelónANGLO Chagres SmelterFMI (Phelps Dodge)-(El Abra – CandelariaRio Tinto Kennecott (Osisoft SC), USAMejicana de Cobre

Petrochem, UtilitiesChile, Peru, Mexico, Bolivia, United States

Sigmafine User Conference – San Francisco April 26, 2010

Mejicana de CobreAnglo Los BroncesGrupo Peñoles, México

© Copyright 2010, Visiant Pimsoft Inc. All rights reserved.

Sigmafine in the mining industry

• CODELCO Chuquicamata, one of the biggest metallurgical complexes worldwide.

• Xstrata Collahuasi, metallurgical and water balance.• CODELCO Andina and Teniente Divisions.


• Antofagasta Minerals• Rio Tinto KUCC pilot


Introduction

Summaryy

Lessons learned from the implementation of Sigmafine in the metal industry are discussed:

• A broader scope than just the data reconciliation problem.• A broader scope of the implementation project, than just SF configuration,

testing and start-up.

A selection of key issues that goes beyond ……

Sigmafine User Conference – San Francisco April 26, 2010© Copyright 2010, Visiant Pimsoft Inc. All rights reserved.

1 An extended view of the reconciliation, ….what for?

To get a set of reliable and consistent data representing the In´s and Out´s of the operation

•Operational performance monitoringOperational performance monitoring•Loss prevention•A single version of the truth•Process analysis•Etc•Etc.

AND, in combination with:

•The production programs (real vs actual) Reconciled Data•The production programs (real vs. actual).•The accounting of the key consumables: reagents, energy, others•The asset reliability KPI´s

Reconciled Data constitutes the basis for the operational accounting

Reconciled Data and SF Model ARE the real interface layer between the operational information and the ERP.


Seems obvious, but its implications are not always recognized in the implementation project.


2 The implications of “Accounting”

If we are dealing with “ACCOUNTING” instead of Data Reconciliation, several issues arises:

• An accounting System shall be “formal”, i.e: data management procedures starting from the original data.

• An accounting system shall be traceable• An accounting system shall be auditable

This is far more complicated than just getting the data from PI and LIMS and generating a SF case…S case

Two examples of the complexities:p p

• Data Work Flows• Data Governance


Data Work Flows, …..the real world…..Data Work Flows, …..the real world…..

Data “ready to be reconciled”Data ready to be reconciled comes from:

• Different systems• Sequences of previousSequences of previous

validation processes.• Sequences of automated as

well as manual data gathering• Data “quality level” mayData quality level may

change (increase), as the data work flow goes on.

Most of the time data movesMost of the time data moves “forward”, from the original measurement to SF, BUT (if backward changes are needed):

• Where and who is the responsible for making a correction if an error is detected?


detected?• What about the tracking of the

changes?• Version control?, other?

Data Work Flows, Data Work Flows,

Formal procedures has to be established for every “data quality step”, by “step” we mean: a calculation an approval a change etccalculation, an approval, a change, etc.

Formal procedures shall be documented and automated, whenever possible, NOTE: This may lead to a special IT project combining WF technologies formsNOTE: This may lead to a special IT project, combining WF technologies, forms management, etc.,

Procedures definitions is a “parallel project” to SF, it involves more people than those just concerned with the “data reconciliation”, people from finance, operations, lab, op. Management etcManagement, etc.


Data GovernanceData Governance

If we are dealing with operational accounting, data management should start from its origins:

• Instrument calibrations: documentation, change management, evaluation, etc.

• Sampling: samep g

• Data management in PI: calculations, pre-processing

• Data Management in SF: model changes, parameter changesg g p g

• Etc.

Configuration Management


Change Management

Data Governance, …not a simple problem….Data Governance, …not a simple problem….

Manual records Acc ModelManual recordsReportsValidations

Procedimientos de trabajo.Responsabilidades

Acc. Model ReportingExhibits

Data for the ERPValidationsApprovals

Work proceduresResponsibilities

Work proceduresResponsibilitiesResponsabilidades Data for the ERP

BALANCE

ApprovalsResponsibilitiesResponsibilities

PI LIMS

Flow Sheet ModelTolerancesEstimation criteriaBalance rules

Sampling systemsSampling proceduresAnalysis procedures

ConsolidationsAdjustments

DCS

Tag managementCompression parameters

AdjustmentsConditioning

Analysis proceduresValidation procedures


Measurements

Compression parametersData pre-processingCalibrations

Certifications


3 Accounting

I t i l it ti i d ( t l t) ith “ t ll bl d ” i bIn a typical site, accounting is concerned (at least) with “controllable nodes”, meaning by that where:

• A program or target existsA l t bl i t

The SF model includes (at least) all the controllable “nodes” of the Plant:•Main flows•Inventories

• A relevant consumable exists

Inventories•Material movements•In´s and Out´s to/from external processes (or battery limits)

Therefore it can be said that in addition of “managing the data set for the operationalTherefore, it can be said that in addition of managing the data set for the operational accounting”, the SF (or PI-AF) model is the operational accounting CORE

To move from mass balance data to operational balance data what is needed is to include in the corresponding nodes the references and rules for the Programs or Targets and Key consumables.

This do not necessarily means that SF will generate the Op. Accounting, BUT will be the repository for the related data (formal-auditable-manageable- traceable).


If so, the same that was described in relation to work flows and governance applies to this new set of information.


4 Final Remarks

It is not the intent of the presentation to show some “extra benefits” or a “hidden potential” of SF.

Even considering that this may be true, according to our experience, the “extended picture” represents the “real problem of the client”.

It is not a simple problem, a “systemic approach” shall be applied, including a multidiscipline team covering technical issues, procedures, business rules definitions, etc.

Open mind is critical for the technology selection.

In this context, SF implementation goes far beyond than just a technical problem.


Thank you


data reconciliation and operational accounting · data reconciliation and operational accounting...

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