Rio’s computers in Elliot Lake mines will save over $10 million by

Computers are rapidly making their way into mines across the country. This development is inevitable because computers that are used properly save time and money. Rio Algom’s management is aware of that. In 1986, it had invested $3.5 million in computing equipment. By 1990, the company will have saved more than $10 million because of that expenditure, says James Jeffery, the company’s director of information systems.

Rio Algom’s uranium mining complex, in Elliot Lake, Ont., employs 3,000 people. The operation includes three operating mines and an administrative office, all located within five to 30 km of each other. Each mine operates independently, with common support services provided from the central administration building.

Rio Algom has four Honeywell Bull computers. (Honeywell Bull was formed in March, 1987, when the computer operations of Honeywell Inc. merged with Groupe Bull of France and nec of Japan. The merged company is now No 2 in the computer industry, behind ibm.)

Two of Rio Algom’s computers are dps8 mainframes located 16 km apart. One is used at a minesite for such applications as maintenance-planning, payroll and materials-management. The other, at the company’s local office, is used for such engineering applications as rock mechanics. The company also has two Office Automation System (oas) mini-computers — oas dsp6s — for electronic spreadsheets, word processing, time management, and the like.

“All four computers form a network,” says Jeffery. “We have about 250 terminals and any one of them can gain access to any computer. We have about 15 terminals 3,000 ft undergound in the mine, too. The objective is to make workers more effective.”

The underground terminals are used by maintenance planners who keep track of costs and crew labor. A maintenance planner captures any information he wants and can access the mainframe on an inquiry basis. This means he can access the materials management system and reserve parts he will need for the following week.

In materials management alone, the systems have allowed the company to cut 26 full-time positions and reduce inventory by 40%.

“The system has been very successful for us,” says Ronald Kruger, a project leader in material management. “Our network extends underground and to on-surface sites, but we’ve had no problems at all. If material isn’t available at a minesite, our analysts can find it quickly. The system has streamlined the whole procedure.”

Wayne Collins, an inventory control supervisor in materials management, is an end-user. He compares the current system to the old one.

“With a total on-line system, information is accurate instantaneously, even at remote locations,” he says. “Before, remote locations had to wait 24 hours to three days before their information could be updated. Now we have an exact recording of inventory levels on hand, which means quicker buying response and better service to our users.”

The Honeywell Bull computers were installed after a lengthy analysis took place. The company’s policy covering capital expenditures is quite clear: direct cost savings must be forthcoming within two years.

In the administrative clerical department, approximately $300,000 per year could be saved. In addition, the engineering department reduced its need for outside computer services, while financial planning and the process development laboratory cut overtime. The result was that the payback for the computer system was only one year.

With one of the micro-computers running an electronic spreadsheet called “In focalc,” overtime has been reduced by $30,000 a year. After the installation, Rio Algom’s annual plan and quarterly revisions were completed on schedule for the first time ever. Now, financial analysts can analyse factors that concern management and not spend their time merely verifying calculations.

Rio Algom has workstations in personnel, engineering, payroll, environmental control, housing, the executive suite and remote mine sites. Oas users include budget co-ordinators and safety, mine, mill and plant department heads. While the departments use document-processing, merge printing, dual-column print, records-processing and “Infocalc,” there are also specific applications, such as salary planning by the personnel people, labor charge-back by payroll, and merge printing by the housing group.

All personnel mail inter-departmental documents electronically. They use oas features to transfer written communications back and forth instantly, rather than wait two days for mail delivery. What’s more, the quality of documents originating from the departments has improved.

“During the recession, we remained profitable because of good planning,” Jeffery says. “Now we have to look at different strategies to survive in the 1990s. We must bring costs down to be competitive on the spot market. That’s why we have this drive to use technology.”