Underground Development
Case Study: Tender Analysis
Selecting the right supplier and commercial model for lateral development in an underground hard rock mine is not a decision made lightly.
Getting it wrong and taking too long to decide could put the future of the mine in jeopardy.
Case Study Facts:
Industry: Mining (Hard Rock)
Location: Australia
Category: Lateral Development
Expenditure: ~AU$500M
The Challenges:
1) Confidence in Analysis
Getting the analysis wrong, not completely understanding all the costs, or not realising that a supplier had not included all the information, had the potential to cost our client hundreds of millions of dollars.
It was critical that the analysis had to be “rock solid”. The following items needed to be carefully reviewed.
- Mobilisation costs & time frames
- Consumption of free issue items
- Number of people over time
- Pricing sensitivity to changes in volumes requested from the supplier
Understanding outliers was critical
2) Complex Pricing Structures
The pricing response document used in this tender process involved more than 1,000 data points and 5,000 calculations across 20 worksheets inside a single Excel workbook.
Our client needed a way to be able to check and analyse the responses accurately.
More than 5,000 Pricing Calculations
3) Time Pressure
Time was short and the analysis needed to be done quickly in order to begin the lengthy internal approval process.
Time was short
The Outcome:
Detailed & accurate analysis within 48 hours!
What would have taken months to complete with varying levels of confidence in the analysis, using Traaci, a comprehensive detailed and accurate analysis was completed with 48 hours!
This outcome gave our mining client the confidence to quickly proceed with the most beneficial outcome.
