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Stockpile Planning

Client: Dampier Salt

Building a salt stockpile at Lake MacLeod

Building a salt stockpile at Lake MacLeod

A Powerful Tool for the Salt Industry.

In a highly competitive international market for salt, Dampier Salt [Operations] (DSO) has a reputation for being one of the most reliable suppliers of consistent high quality bulk solar salt. As part of its plan to increase productivity, DSO wanted to evaluate the long term effects of different stockpile sizes on its ability to reliably meet the demand from clients. Moreover, each of the massive 120-tonne trucks which haul salt at Dampier Salt's Lake MacLeod operation in Western Australia costs about $400,000 a year to run. The trucks cost $100,000 a year even when they are not used.

Now, thanks largely to a simulation model developed by the CSIRO, Dampier Salt has been able to cut one truck from its 12-vehicle fleet, while still improving the efficiency of operations at Lake MacLeod. With the help of the CSIRO package, the company is considering whether it could cut the truck fleet down to ten.

A model of the salt production operations was developed for use as a planning tool to help evaluate likely outcomes of different operating policies. It incorporates most aspects of the salt production process at Lake MacLeod, including salt growth due to evaporation in the crystallisers, stockpile levels at different stages in the production process and the shipping demand, particularly the arrival patterns and tonnages of ships at the port. The model also includes operational factors such as harvesting, washing and drying the salt, transporting the salt between stockpiles and loading the ships. The operational processes in the model were subject to weather patterns and equipment availability and maintenance schedules.

The model was interfaced to Lotus 123. This allowed the staff at DSO to use a familiar spreadsheet package to enter data for different operating scenarios, to run different simulations and to analyse and graph the output from the simulations.

In order for Dampier Salt to maintain its high quality and reliability of supply, involves maintaining large stockpiles of expensive processed salt, keeping a careful track of shipping schedules and weather conditions, and maintaining the capacity to shift salt at short notice from stockpile to dockside. To keep this front end of operations working efficiently, salt has to be continuously moved from crystallisers to washing facility, then to a 'wet' stockpile and - after drying for two months - on to a 'dry' stockpile near the docks. As clean dry salt has to ready at any time to move up to replenish the dockside stockpiles, this means that scheduling decisions have to be made months in advance.

The CSIRO operational stockpile planning software now enables simulation runs to be set up for five to 20 years ahead. This allows DSO to investigate the medium and long term effects of different production policies by examining 'what if' scenarios far into the future as well as investigating how the company can achieve efficiencies with different stockpile and truck fleet options.

Over a period of time the model has been modified to reflect the working needs of the management and staff at the Lake MacLeod production facility.

As a result of this work, DSO has been able to substantially reduce its operating costs while maintaining its reputation as a reliable supplier of high quality salt.

Meanwhile the CSIRO team is applying the same modelling techniques to the company's similar but larger salt facility at Dampier in Western Australia. A further stage of this project would involve integrating operations at both sites.

CSIRO is also looking beyond the salt industry to other possible applications of its planning software.

Salt Salt More Salt
Client Feedback

CSIRO's work has definitely helped us understand our own operational process more clearly. It is an excellent tool for examining 'what if' scenarios far into the future and it demonstrates how we can achieve efficiencies with different stockpile and truck fleet options. 

Ron van Zelzen, Acting General Manager, Dampier Salt, June 1993

Further Information

For further information, please contact Andreas Ernst

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Page last updated September 08, 2004 12:53 PM by Mark Horn.

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