Odebrecht advances in the monitoring of machines

System reduces costs of fleet maintenance providing gains in productivity and safety at the jobsite

Managing a wholly-owned fleet of over 5,000 units of heavy construction equipment at construction sites spread out all over Brazil and even abroad requires a fine-tuned structure consisting of qualified professionals and the appropriate tools for compliance with company policies regarding acquisition, maintenance and operating procedures. The experience of the Norberto Odebrecht Construction Company, the largest in the sector in Brazil and Latin America, shows that this task can be optimized by capitalizing on the embedded electronics in the equipment.

The combination of this resource with the technology of data transmission via satellite or cellular network, which enables real-time monitoring of the vital signs machines, has enabled the implementation of a remote monitoring system that already covers a significant portion of the construction company’s fleet. According to Afonso Mamede, director for equipment at Odebrecht, the system is already at work in the tracking of 1,250 trucks and 1,900 off-road machines. "The system has been providing considerable savings in maintenance costs as well as gains in the safety and productivity of machine operation," says Mamede

It is worth noting that the construction company operates about 5,400 wholly-owned and 5,900 rented machines, which allows one to foresee an expansion in the coverage provided by the system. Mamede explains that the implementation itself of this tool was in stages, starting with the ‘Iris’ remote-monitoring system focused on Scania trucks. "Gradually, we began adding systems developed by other manufacturers." That’s why, he explains, that a company interested in becoming a supplier to Odebrecht has to open the ‘source code’ of its respective electronics system.

Gains from the system
Presently, Odebrecht’s remote monitoring system, which integrates the tools provided by equipment manufacturers, includes Iris (Scania trucks), CareTrack (for Volvo earthmoving equipment), Komtrax (Komatsu machines), ProductLink (for the Caterpillar line) and San Remo (drilling rig trucks). In addition, other remote monitoring tools are undergoing development or deployment for the monitoring of machines such as cranes, roller compactors, crushing plants, tunnel boring machines and equipment weighing systems.

Along this trajectory, besides the integration of the different monitoring systems to the environment that is created, the construction company has to undertake extensive negotiations with manufacturers to get them to open their electronic systems - which generates information for the competition. However, due to the volume of purchases made by the construction company, which is the largest buyer of construction machinery in the country, Odebrecht has been able to get suppliers to give in to this requirement. And this effort has proved to be important to the productivity and profitability of operations.

“In Angola, where we have five rooms to monitor the fleet in different construction projects remotely, the rate of accidents involving trucks fell 90% and violations committed by operators, which used to total eight incidents per hour, were reduced to one per hour," Mamede says. The incidents to which he refers are situations in which the operator of the truck exceeds the speed limit established for the jobsite or for the highway, grinds gears when shifting, operates at the improper rotational speed specified for the engine or uses the clutch pedal as a footrest, ” among other occurrences.

By enabling the collection of data related to the engine, transmission and other subassemblies of the equipment using sensors installed on the machines, the system also helps to promote better qualification of operators, which includes establishing awards for operators who are more efficient and scheduling refresher courses for those with higher rates of incidents. By ensuring correct operation, the system also contributes to higher productivity of operation and reduction in maintenance costs.

"The reduction in cost exceeds 10% and, as refers to Angola, monitoring of trucks has led to monthly savings of R$ 400,000 (US$ 228,570.00) with tires alone," says Mamede. This is because the fleet in question, which used to require the replacement of 30 tires per day, has had the rate of tire replacement reduced to two tires per day. Furthermore, by being operated properly within the specified speed limits and at the best range of the engine rpm, the equipment saves 10% in fuel.

Investments in the fleet
Responsible for about 30% of the revenue of the Odebrecht Group, which was U.S. US$ 42 billion last year, the company’s business in the area of construction includes a portfolio of about 180 contracts world wide, totaling US$ 32 billion, of which 50% are in Latin America. These numbers make Odebrecht the largest construction company in Latin America and, to meet its demand for machines at construction sites, it is also an important customer of the construction equipment industry. According to Mamede, since 2004, the company has invested US$ 1.5 billion in its fleet of equipment.

"We don’t buy based on price, but rather on the quality of equipment and the support provided by the supplier," said Mamede. He points out that commercial negotiations only proceed after a technical analysis to determine that the equipment offered meets the needs of the company. To ensure this, Odebrecht goes as far as carrying out inspections on the manufacturer’s production line. "The manufacturer even has to deliver a hoisting plan for deployment of the machine at the jobsite," adds Paulo Oscar Auler Neto, superintendent of equipment acquisition at Odebrecht.

As regards the opposite of purchasing, in other words the replacement of the machine, the criteria of cost take on a predominant role. At the end of a job, if the equipment does not have a determined application in performing another contract, it is automatically put up for sale, whether or not the hour meter says it should be replaced. Doing so prevents the company from accumulating fixed assets and incurring costs with idle equipment. "Our fleet is renewed automatically based on the needs of our construction projects," Mamede considers.

Obviously, a machine that is close to being replaced is not assigned to a major project at its initial phase even though, along its lifetime of assignments, it has complied with all the standards for preventive maintenance established by the company. But the acquisition of a new unit, whether by purchase or rental, will be determined based on its ability to improve profitability and return on investment for the company.