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Case Study: BHP Billiton

Supplier: TSG By: TSG
31 August, 2010

Since 1992, TSG personnel have provided simulation based decision support services to BHP Billiton Iron Ore.

Client
BHP Billiton Iron Ore

Project
Ongoing expansion projects

Location
Western Australia

Date
1992 – present

Use
Simulation is an integral component of BHP Billiton's project evaluation process.

Since 1992, TSG personnel have provided simulation based decision support services to BHPBilliton Iron Ore. These services are based on a very detailed holistic simulation model of all the activities that make up the supply chain from multiple mines all the way through to shipping products to customers.

This modelling is used by many business functions within Iron Ore, including Marketing, Business Development, Asset Development Projects (ADP), Integrated Planning, and Legal. However, it is within ADP that the modelling supports and assists in the determination of the performance capability of alternate scope and configuration ideas that finally culminate in each expansion path project scope of work.

These expansion projects establish a staged scope of work that makes up a recommended expansion path which allows the rapid growth in the supply chain capacity required to be able to supply the expected market mix of products and the expected overall sales tonnage growth.

The process methodology used also facilitates the explanation of why options were selected or rejected, culminating in gaining acceptance by all the stakeholders and subsequent approval by the board to proceed with project implementations.
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