Maximizing ROI with Mindshift’s Advanced Fuel Management Solutions

Return on Investment (ROI) is a key performance indicator used to evaluate the efficiency or profitability of an investment. A high ROI signifies significant cost savings and productivity improvements, translating directly to enhanced profitability and operational efficiency.

Mindshift's Advanced Fuel Management solutions do exactly that, and are designed to revolutionize fuel management for medium-sized mines or sites. By addressing common challenges such as fuel reconciliation, pilferage, and idle time, our solution delivers tangible results that significantly enhance operational efficiency and reduce costs.

ACHIEVE SIGNIFICANT FUEL SAVINGS

Our solution enables a 50% reduction in fuel reconciliation losses and pilferage. Through detailed audits and real-time monitoring, clients have reported savings of up to ₹2,500,000 annually by preventing reconciliation losses and ₹800,000 by reducing pilferage. Additionally, optimizing idle time can save another ₹10,000,000 per year. For a thorough breakdown, refer to Appendix A.

OPTIMISE MANPOWER EFFICIENCY

By automating manual processes, our solution redeploys field data loggers and data entry operators, resulting in substantial manpower savings. This includes those who ride the fuel truck and capture refueling and HMR data in manual registers and those who post fuel and HMR data from manual registers or fuel slips into XL sheets. By shifting from manual requirement gathering and coordination to bowser drivers dispatching as per automatic mandate, these optimizations can save up to ₹2,300,000 annually, freeing up valuable human resources for more strategic tasks. For detailed calculations, see Appendix B.

BOOST PRODUCTIVITY

Our solution addresses delays in refueling, reduces bowser travel time, and prevents HEMMs downtime due to fuel waiting. This results in an annual productivity improvement worth ₹12,700,000, ensuring your operations run smoothly and efficiently. For more detailed information, refer to Appendix C.

CONCLUSION

Mindshift’s Advanced Fuel Management Solutions are a game-changer for fuel efficiency, manpower optimization, and productivity enhancement. With an estimated annual impact of ₹28,300,000 across fuel savings, manpower savings, and productivity improvements, our modules offer a compelling ROI for medium-sized mines or sites. By adopting our solution, you not only enhance operational efficiency but also secure significant cost reductions, driving your business towards a more profitable and sustainable future.

* Universal Assumptions:

• 150 assets, 2 diesel bowsers, 2 shift refueling operations.

• Fuel consumption: ~100 liters/HEMM/day.

• Annual fuel consumption: ~5.5 million liters.

• Average 0.7 refueling per field asset per day (~1 refueling for every 3 shifts).

APPENDIX A: Fuel Savings

Impact Category	Assumptions & computation	Impact
Reduce fuel reconciliation loses by 50% with shift-wise audit & reconciliation of each bowser	Refuelling audit, Bowser audit to reduce reconciliation loss by 0.5%  Annual fuel consumption ~5.5 Million LItres Per Annum =>saving 27,500 Litres / annum	Rs. 25,00,00/ year
Reduce pilferage from HEMMs by 50%	If there are 50 incidents of fuel theft in a month, reduce them by 50% by detecting and disincentivizing. Save 25 incidents X 12  ~ 300 annual incidents x average 30L / incident= 9,000 Litres / annum	Rs. 8,00,000/ year
Reduce IDLE-ON by detection, targeting and training	Change HEMM duty cycle from 20:30:50 (off:idle:loaded) to 20:40:40 and save 10% fuel. Assume only 20% of potential is realised ~ 2% net saving ~110 KL	Rs. 1,00,00,000/ y
Fuel saving potential		Rs. 1,33,00,000/ y

APPENDIX B: Manpower Savings

Impact Category	Assumptions & computation	Impact
Redeploy field data loggers	1 FTE / shift / fuel bowser => 4 FTEs costing Rs. 2,00,000 / year/ each	Rs. 8,0,000/ y
Redeploy data entry operators	Assume 100 fuel slips / day (150 X 0.7)  3 minutes to check and post each fuel slip => 300 minutes/ day => 5 hours / day => 1 FTE of Rs 3,00,000 / year	Rs. 3,00,000/ y
Reduce from fuel dispatchers	Reduce by 2 FTEs, ₹400,000/year each	Rs. 8,00,000/ y
Time saved -managing XL sheets aggregation, error correction by 1 FTE	Data posting error count 5% of 36,500 data posts= 1,825 errors /year. Each takes 5 minutes to spot and fix.	Rs. 4,00,000/ y
Manpower saving potential		Rs. 23,00,000/ y

APPENDIX C: Productivity Improvement

Impact Category	Assumptions & computation	Impact
Primary impact: To save time, HEMM operators refuel only the bare minimum quantity required to complete their task. This results in insufficient fuel and bunching of refuelling requests at the start of each shift =>average ~20 minutes delayed start for ~ 5% of HEMMs in each shift, due to	20 minutes delay x 5% HEMMs (7 HEMMs) = 150 minutes production loss / shift Over annual 730 shifts => 1,825 lost hours / annum opportunity cost of 50T dumper or 1.5 cbm Excavator ~ Rs 4,000/hour	Rs.73,00,000/ year
Second order impact: resultant large number of “smaller” refuels cause increased bowser travel time and distance >> reduced service capacity >> Hiring contract bowsers at significant cost.	As much as 50% bowser capacity released with streamlined automated dispatch Average cost of hiring a bowser for 1 year ~ Rs. 12 Lacs	Rs.12,00,000/ year
Without visibility of live fuel levels ~0.5% HEMMs go off-line for ~60 minutes in each shift, while waiting for fuel.	@0.5% count of offline HEMMs =0.75 / shift for 1 hour each  With 730 shifts => 550 lost Hours / annum opportunity cost of 50T dumper or 1.5 cbm Excavator ~ Rs 4,000/hour	Rs. 22,00,000/ y
Without live location of tippers, refueling was done at fixed drop points on mine roads as per pre-determined schedule. Tippers  lose on average ~10 minutes of production time.	On average large mobile HEMMs account for 20% of fleet count ~ 30 mobile HEMMs ~500 refuels / HEMM / year If 20% of refuels require such travel => 100 refuels / HEMM/ year => 15 hours lost hours / mob HEMM/year. => 500 lost HEMM hours/ year	Rs. 20,00,000/ year
Total Productivity impact		Rs. 127,00,000/ y