OPCOST COST ESTIMATION AND BUDGETING SYSTEM REFERENCE OR SCHEDULE QUANTITY Copital costs Salvage value Lite Maintenance rates Materials costs Consumption rates Scheduled usage Productivities Consumptions Usages Capitel costs Operating costs Additions/replacements Requirements LABOR RESOURCES Operators 4 BPR soinseer SUPPLY RESOURCES Lf 1 bits and qecacssnies PROWARE 5237 N. VIA VELAZQUEZ, TUCSON, ARIZONA USA 85715 ‘TEL 602-299-7834 FAX 602-299-8009OPCOST COST ESTIMATION AND BUDGETING SYSTEM VERSION 34 USER’S DOCUMENTATIONDOCUMENT TITLE: OPCOST USER’S DOCUMENTATION Ver. 3.1 DOCUMENT CLASSIFICATION: Confidential This document and the software to which it refers are issued under the following conditions: a All copyright and other intellectual property rights in the document and in the software are solely reserved to PROWARE. (2) This document and the associated software is confidential to clients utilizing it and to employees of PROWARE. This document and software, or any part or element thereof, will not be copied or disclosed to any third party without the written consent of PROWARE. (3) This document and the associated software is subject to change at the discretion of PROWARE and, while PROWARE endeavors to produce correct and accurate information, no liability can be accepted for error or omission. USER ASSISTANCE: Contact: — Mr. John T. Bartlett PROWARE 5237 N. Via Velazquez Tucson, Arizona, U.S.A. 85715 Telephone: (602) 299-7834 FAX: (602) 299-8009Section 1.0 3.0 SYSTEM MECHANICS . RBaSERE OoPCOST USER'S DOCUMENTATION TABLE OF CONTENTS Getting Started . Installation . .. . Machine Configuration Menus ..... User Interface . File System . Miscellaneous. . OPCOST SYSTEM 2.1 Introduction... 2.2 System Features 2.3 Costing Methodology . 2.4 System Flowchart . 2.5 System of Units . 2.6 Resource Codes 2.7 Cost Definition . . DATA ENTRY «0... 0.0cccceseeeee essere eeeees 3.1. General Information 3.2 Project Information 3.3. Period Definition .. 3.4 Schedule of Materials (ISCHD) 3.5 Manpower Group 3.6 Consumables . . . 3.7 Equipment Specifications . Major Equipment Group .. Service Equipment Group . Equipment Group Special Applications . 3.8 Cost Code Definition .......... Scheduled or Referenced Quantities Equipment Requirements Specification . Manpower Requirements Specification . ConsumablesTABLE OF CONTENTS (Cont’d.) Section Operating and Capital Costs . 3.22 3.9 Data Error Checking 3.23, 4.0 PROJECT DATA VERIFICATION . 44 5.0 CALCULATION OF PROJECT DATA ............. 54 6.0 RESOURCE REQUIREMENT REPORTS ..... cesses GA 7.0 DATA SMOOTHING 7A 8.0 COSTCALCULATIONS ..........0.0.0ecee sees 84 9.0 COSTREPORTING ..........0.c0seeeeeee sees 94 9.1 Resource Reports .. 94 9.2 Cost Code Reports 9.2 9.3 Executive Summary . 9.3 10.0 EXAMPLE MODEL ............20:eeeeeeeeeeee 10.11.0 SYSTEM MECHANICS. 1.1 Getting Started Following is a condensed outline of the procedures for the use of OPCOST. Tum to the appropriate section within the User's Documentation for a complete explanation of each step within these procedures. These procedures are only a quick reference, the user should become familiar with the entire documentation prior to using the program. 1) 2) 3) 4) 5) 6) 7 8) 9) 10) 11) 12) Install OPCOST on your computer system (Section 1.2) Run the OPCOST program (Section 1.2) Configure OPCOST to your computer (Section 1.3) Open a model fle. Either create a new model or retrieve an existing model (Section 1.5) Input model data or modify existing data (Chapter 3) - Project information (Section 3.2 & 3.3) Name & description Project Life Number of period Length of periods Fixed Parameters - Material Schedules by Period (Section 3.4) - Resource definitions Manpower (Section 3.5) Consumables (Section 3.6) ‘Equipment (Section 3.7) ~ Cost Code structure (Section 3.8) Verify input data (Chapter 4) Calculate resource requirements (Chapter 5) Output resource requirements (Chapter 6) Input smoothing parameters, optional (Chapter 7) Calculate capital and operating costs (Chapter 8) Generate costing reports (Chapter 9) Exit OPCOST (Section 1.7) 1These steps reflect the top down operation of OPCOST from the main menu. While the above procedures are extremely generalized, the references to the appropriate = — chapters and sections should furnish the necessary detail. 1.2 Installation OPCOST is designed to run on IBM PC/XT/AT and compatible computers under the PC/MS-DOS operating system. The recommended machine configuration is an "286" or "386" type machine with 640K of memory, a hard disk drive, a floppy disk drive, graphics monitor and a 132 character line printer. A color monitor is recommended but not required. The installation package should contain the following: 0 An OPCOST system diskette © One software Sentinel device © Two copies of the OPCOST User's Documentation. To install OPCOST on your machine, perform the following steps: 1) 2) 3) 4) 5) Create an OPCOST directory on your hard disk using the DOS ‘commands: MD \OPCOST CD \OPCOsT Copy the contents of the OPCOST system diskette into this directory via: COPY A". (or B:".") ‘The OPCOST directory should contain the following files. OPCOST.BAT The OPCOST batch command file. OPCCHR.COM The character generator file. OPCRTS.EXE — The run time file. OPCOST.AWS The OPCOST program. OPCMAC.CON The machine configuration file OPEXD1.ASF An OPCOST example data file. Install the software Sentinel on the parallel port. This copy protection device must be in place at all times. If a printer is connected to the sentinel, the printer MUST BE TURNED ON and on line. At the DOS prompt, enter the following command: CAOPCOST> OPCOST 12The program loads automatically and is ready for use when the main menu appears. 6) Move the menu bar to the CONF Machine Configuration option, press ENTER, and configure OPCOST to your computer and printer by selecting the options which correspond to your hardware. 1.3 Machine Configuration - CONF This option permits the user to configure OPCOST to the hardware environment in order to take advantage of hard disks, color monitors, and various printer features. Upon selection of CONF, the following screen appears, listing all of the OPCOST supported hardware options. MACHINE CONFIGURATION DISKS: 0-Drive A 1-Drive B 2-Drive C 3-Drive D 4-Drive E 5-Drive F MEL( 2) MODEL FILE DRIVE PORTS: 1-Ist Serial 2-2nd Serial 3-1st Parallel 4-2nd Parallel se ( 1) SERIAL PORT Lor 2 PPR( 3) PRINTER PORT 1, 2,3 or 4 KYB( 3) 1-PC | 2-AT/84 Key “3-AT/101 Key l-Hercules 2-IBM CGA 3-IBM EGA 4-IBM VGA 5-COMPAQ GC (2) GRAPHICS CARD Ci (79) COLOR 1 C2 ( 31) COLOR 2 C3_{ 63) COLOR 3 PRINTER: O-Screen 2-C. Itoh 4-IBM/Toshiba _6-other i-Bpson _3-NEC PnXL_—S-HP._ LaserJet PPT( 1) PRINTER TYPE —_CH2(241) Substitution for ‘=’ character PDS( 1) FONT 1-Single 2-Double 3-Enhanced 4-Letter Quality PCR( 0) CARRIAGE RETURN AFTER EACH LINE 0-No 1-Yes FORMS: PPL( 66) PAGE LENGTH PEW( 80) PAGE WIDTH - 80, 96, 132, 145, or 160 PCI( 10) CHARACTERS PER INCH'- 10, 12, 15, 17, ox 20 PuW( 0) MARGIN WIDTH - Nunber of’ characters in left margin. Disks: Select the appropriate disk drive where mode! files will be found or will be stored. This can be changed as needed. The file directory is changed using the EDOS command from the main ‘menu. Ports: Select the output port for printing of reports. Keyboard: Select the system keyboard type. Graphics: Select the system graphics type. The coior selections on color graphics monitors can be modified as: Color 1 - High lighted data field or menu item Color 2 - Menus and data field labels Color 3 - Data fields 13Colors: O-black 1-blue 2-green S-cyan 4-ted S-magenta 6-yellow 7-white 0-7 low intensity, 8-15 high intensity (high intensity foreground oniy) Color value = foreground + (16 x background) Examples: Bright white on red Bright white on blue Bright white on cyan 15+(16x4) = 79 154(16x1) = 3t 154(16x3) = 63 Printer: Select the print and font to be used for output reports. Some printers will ‘ot print the triple bar character "=" (ASCII character 240) used in the cost report. To use some other character replace the value with the ASC!| character value +1 (.¢. 221, —j ASC!! 220 +1; 197, — ASCII 196. + 1; 43, * ASCII 42 +1; or any other character supported by the printer). Forms: Select page length based on 6 vertical lines per inch. Input for page width is dependent upon the page size and the print pitch. The standard 8 1/2" wide page has a page width of 80 at 10 pitch and a width of 132 at 17 pitch. 1.4 Menus The complete operation of OPCOST is under the control of the main menu. All required modules for project generation, from initial data entry to final report output, are contained and ordered within this menu. Upon running the program, the following OPCOST main menu appears. FILE HANDLING MENU DATA INPUT MENU INPUT DATA OUTPUT MENU CALCULATE ALL RESOURCES RESOURCE OUTPUT MENU INPUT SMOOTHING PARAMETERS OUTPUT SMOOTHING PARAMETERS PERFORM SMOOTHING CALCULATE OPERATING COST CALCULATE CAPITAL COSTS OUTPUT REPORT MENU COST CODE REPORT MENU EXECUTIVE SUMMARIES CREATE PRINT FILE CREATE COMMAND SEQUENCE RUN COMMAND SEQUENCE EXECUTE DOS COMMAND MACHINE CONFIGURATION EXIT OPCOST 14Contained within the main menu are six submenus for file handling, data entry, and output report generation, these are: MFIL- FILE HANDLING MENU MINP - DATA INPUT MENU MOUT - INPUT DATA OUTPUT MENU MRES - RESOURCE OUTPUT MENU MREP - OUTPUT REPORT MENU MCCR - COST CODE REPORT MENU Each of these submenus are also arranged in the normal order of program execution so that the novice, as well as the advanced, user may rapidly cycle through the programs with ease. These menus will be explained in greater detail in the appropriate sections of this manual. 1.5 User Interface The OPCOST user interface is handled entirely through menus and data screens. There is no need for any command language. OPCOST uses three forms of screen displays depending upon the program in operation and the input mode. These forms are: ‘© Program Menus or Submenus for selection of program modules. (© Data Line Item Menu Screens for selection, duplication, insertion, or deletion of line items in data arrays. © Data Input Screens for input or modification of individual data elements within a selected line item in data arrays. Various keystroke sequences simplify the usage of OPCOST menus and data input screens. The function of a particular key will depend upon whether the current screen is a Program Option Menu, Data Item Menu, or a Data Entry screen. These keystroke functions are controlled key functions are: SCREEN TYPE. KBYSTROKE FUNCTION Program Menu Enter select Item Cursor keys Move Cursor PgUp/Pgpn’ Move to Next Menu Page Home/End First/Last Menu Item Esc Exit to Previous Menu ctrl - P Cancel Printer Output Data Item Menu Enter Select Item for Data Input Screen ctrl - D Duplicate an Item Del Delete an Item Ins Insert Before Current Line Ctrl - Ins Insert After Current Line gon Move Down a Page PgUp Move Up a Page Home/End First/Last Data Item on Current Page 15Ctrl Home/End —-First/Last Data Item in Total set Esc Exit to Previous Menu Note: To move an item, 1 - delete it with Del 2 - move cursor to new location 3 - insert old line with Ins or Ctrl Ins Data Input Screen Enter Move Cursor To Next Field Cursor (AT) Move Cursor Ctrl ~ Keypad Move Cursor Keypad Numeric Data ctrl - R Repeat Value Esc Exit Screen with Data Update Break Exit Screen without Data Update Note: To edit a field without blanking it out, use Cursor keys as the first keystroke upon entry into the field. Note: When repeating a data value, the value must first be entered in a field followed by Enter, then use Ctri-R to repeat the value in adjacent fields. 1.6 File System The OPCOST file system is driven from the file handling menu options listed below. All project data for each model is contained in a single file. The project file name must adhere to the following naming convention as per standard DOS file name conventions. The file name must not exceed eight characters in length. The first character must be alphabetic, that is A to Z. The remaining characters must be alphanumeric, A to Z or 0 to 9. No spaces are allowed, use the underscore *_" if separation is needed. No extension is permitted, .ASF is used automatically. e0000 CHANGE/CREATE MODELS COMPRESS CURRENT FILE CREATE BACKUP FILE CLOSE FILE DIRECTORY OF OPCOST FILES - EXECUTE DOS COMMAND FILM - CHANGE/CREATE MODELS This module performs any or all of the following items: © Closes any currently open project file. © Requests the name of another project file. © Creates a new file if the specified file name is new. © Retrieves an existing project file if the specified name exists. 16FILS - COMPRESS CURRENT FILE This module compresses the current data file to remove wasted space caused by editing and data additions. Periodic execution of this function will minimize disk space usage of OPCOST data files. FILB - CREATE BACKUP FILE Selection of this option will create a duplicate copy of the current project file to a user specified file. The backup file is a compressed copy of the current project file. Frequent backups will protect valuable data from loss. Backup of project files to diskettes can be done using the DOS COPY command. FILC - CLOSE FILE Selection of this option closes the currently open project file. This program is run automatically upon executing DOS commands from OPCOST or upon exiting from OPCOST. FILD - DIRECTORY OF OPCOST FILES This program displays a directory of OPCOST project files in the current DOS directory. Use the EDOS command to change DOS directories to access other project files. 1.7 Miscellaneous The following miscellaneous programs can be selected from the main menu as desired by the user. PFIL- CREATE PRINT FILE To create ASCII text files for import into spread sheets or word processors, the user may redirect printer output to a file. Selection of this option from the main menu prompts the user for an output file name. The file extension is automatically set to OUT. A blank file name will turn this option off. Changing model files, closing a model file, or exiting OPCOST will automatically close the print file.CCMD - CREATE COMMAND SEQUENCE This option allows the user to select a series of options from the menus, building a command sequence to be run as a "batch" job. Command sequences may include the printing of multiple reports, taking hours to print, but performed in batch during off hours. The procedure for creating a command sequence is: ~ Select the CCMD option from the main menu. = Answer yes (Y) to DO YOU WISH TO ENTER COMMAND MODE? - Optionally delete any current command sequence. Move through the menus and submenus selecting functions to add to the command sequence. + Menu items with a plus sign may be added to the command sequence. Menu items with a minus sign are not added to the command sequence, but execute immediately for user input. = Again select the CCMD option from the main menu. = Answer no (N) or blank to DO YOU WISH TO ENTER COMMAND MODE? ~ Optionally delete the current command sequence. This command sequence is stored in the project data file and can be executed at any time. RCMD - RUN COMMAND SEQUENCE Selection of this option begins execution of the functions currently listed in the command sequence created by the above operation. The command sequence can be rerun multiple times as required. EDOS - EXECUTE DOS COMMAND. This option permits the execution of DOS commands without exiting the program. This is useful for copying files and changing directories. IMPORTANT! OPCOST will close the current model file when EDOS has been selected. The model file must be reopened prior to continuing work within this model. EXIT - EXIT OPCOST Selection of this option closes the active project file, terminates the OPCOST program, and returns to the DOS operating system.2.0 OPCOST SYSTEM 2.1 Introduction A detailed estimate of project costs is essential for the preparation of feasibility studies, project plans or operating budgets. OPCOST is a suite of programs that assist in the estimation of project capital and operating costs. To achieve this, OPCOST must first determine equipment, manpower, fuel, and supply requirements. By estimating resource requirements and costs, OPCOST serves a variety of purposes: ‘© Project management through estimating equipment, labor, and consumables. © Financial evaluation by tracking cost origins. © Sensitivity analysis for alternative designs or operating schemes. OPCOST simulates the reasoning processes undertaken in costing a project, making use of the interdependent resources of a mining project. From the user provided data, OPCOST performs the tedious arithmetic involved in calculating resource requirements, consumption schedules, and costs. Figure 1 illustrates the association of resources, consumptions, and productivities for an equipment resource item. From these associations, OPCOST calculates equipment and manpower requirements, fuel and supply consumption, and lastly, project capital and operating costs. OPCOST has options to generate the following detailed resource and cost reports: Resource definition reports: Major and service equipment Fuel and supplies Salaried and houtly personnel Period requirements as input: Reference quantities and productivities Capital and operating costs Equipment, manpower, fuel and supply consumptions Equipment reports: Operating hours by equipment type Purchase and replacement schedules Capital cost and salvage value Fuel and supply reports: ‘Consumptions by cost code Consumption unit and cost summaries by period Manpower related reports: Manpower requirements by cost code Manpower staffing by type and skill level 24REFERENCE OR SCHEDULE QUANTITY FUEL RESOURCES m @ Capital coat Salvage value Lite — 8G onwraer cost Ma Senscuied pager dbase Maintenance Scheduled ‘ Productiviti personnel LABOR RESOURCES: FIGURE 1 ILLUSTRATION OF OPCOST DATA RELATIONSHIPSManpower cost reports Cost reports: Cost summaries by resource type Total and unit cost by area, division, center, item, or element Executive summary 2.2 System Features OPCOST is a flexible and powerful software package capable of estimating detailed costs for any project. The major features of OPCOST include: © Interactive menu driven system with full screen data editing. User defined cost code structure defining up to ten-digit codes. ° ° Ability to assign up to 60 time periods of varying lengths. ° Ability to handle preproduction and postproduction activities. ° User defined units for scheduled quantities and money values. ° User defined equipment, manpower, fuel and supply items. ° Flexibility to specify equipment usage as productivity, hours or units. ° Ability to vary availability and maintenance with equipment age. ° Automatic generation of equipment purchase and replacement schedules. ° Detailed manpower requirements by skill level or job function. © Ability to modify/smooth calculated equipment and manpower requirements. ° Detailed tabulations of fuel and supply requirements. ° Ability to vary consumable unit costs over the project life. ° Provision for direct entry of capital and fixed or unit operating costs. ° Ability to easily run project sensitivity analyses. ° Availability of reports organized by resources or cost codes. 232.3 Costing Methodology The methods used by OPCOST are those which are fundamental to any cost estimating exercise. Unit operations are defined within a structured hierarchical system. The hierarchical costing system used by OPCOST is dependent upon user defined cost codes representing specific levels within the project. The overall project is described in order of Area, Division, Center, Item, and Element of operation. The hierarchical tree structure is illustrated below: COST CODE HIERARCHICAL STRUCTURE ‘17EM ‘17EM ELEMENT ELEMENT ELEMENT... A typical cost code hierarchy with line items is shown below: Level Cost Code. Description. Area 20000 MINING OPERATIONS Division 21000 PIT OPERATIONS Center 21300 LOADING OPERATIONS tem 21310 ORE LOADING Element 21311 DEMAG 185 HYD SHOVEL Element 21312 992C CAT FRONT END LOADER Specific resources are assigned to each cost code level by either direct input or indirectly through their association with other resources. Resource items associated with equipment, such as manpower, fuel, supplies, and maintenance materials, are assigned to the cost code referencing that equipment item. This cross-referencing of resources reflects the interdependent nature of costs within a project. Resource associations are listed in Table 1. The cost code hierarchy is crucial in the development of an OPCOST costing model. The assignment of various attributes and modifiers to cost code elements defines the manner in which resource requirements and schedules are calculated. Unit costs, labor rates, and capital costs are used to compute monetary values from material and supply consumptions, manpower requirements, and equipment purchases. 24TABLE 1 COST CODE RESOURCE ASSOCIATIONS AND COST REFERENCES cost CODE ceneraep | cost cost LEVEL Group | RESOURCES | COMPONENT REFERENCE AREA qwry+ | none none none prvrston owty* | none none none CENTER QnTy* | _— none none none ITEM onrys | none none none ELEMENT — EQUP. OPER TABOR HOURLY WAGE WAGE: LABOR HOURLY WAGE FUEL MATERIAL UNIT cost SUPE MATERIAL UNIT Cost cost MATERIAL | HOURLY MAINTENANCE MATERIAL COST CAPE CAPITAL ‘CAPITAL COST - SALVAGE VALUE SERV WAGE LABOR HOURLY WAGE FUEL MATERIAL UNIT COST SUPL MATERIAL UNIT Cost cost MATERIAL | MONTHLY MAINTENANCE MATERIAL COST CAPL CAPITAL CAPITAL COST - SALVAGE VALUE GENE GENL TABOR ANNUAL SALARY STAF STAF TABOR ANNUAL SALARY OPER OPER LABOR HOURLY WAGE WAGE, WAGE TABOR HOURLY WAGE FUEL FUEL MATERIAL UNIT Cost SUPL SUPE MATERIAL, UNIT CosT cAPL cAPL CAPITAL INPUT cos? cost cost MATERIAL INPUT Cos? * User defined four character name describing scheduled quantity. 252.4 System Flowchart The OPCOST system consists of menu options which are executed in a logical top down sequence. An OPCOST cost estimation or budgeting study is conducted in four fundamental segments as illustrated in Figure 2 and explained below. 1) Data Input - The user inputs the project information, reporting periods, cost code hierarchy, scheduled quantities, equipment and manpower definitions, consumables, and fixed capital or operating costs. 2) Resource Calculation - OPCOST calculates equipment usage, fuel and supply consumption, and personnel requirements for all resources included within the cost codes. These operating schedules are used to calculate the following associated requirements: - Equipment: OPCOST calculates purchase and retirement schedules based upon equipment life, productivity, production schedules, and starting fleet information. The user may modify the calculated equipment requirements. - Manpower: OPCOST generates total labor requirements for hourly employees based upon operating and maintenance crews specified with each equipment item. Direct input manpower requirements are added to these calculated crews, and the overall manpower needs are reported. The user may modify the calculated manpower requirements. + Consumables: Based upon the equipment operating schedules and consumption rates, OPCOST computes fuel and supply consumptions. ‘These are added to the directly input consumables and tabulated in total fuel and supply schedules. 3) Cost Calculation - Consumable unit costs, maintenance cost, salaries and wages are combined with resources requirements to calculate capital and operating costs. 4) Reporting - OPCOST generates a wide variety of final reports for each resource group and for each level within the cost code structure. Four types of reports are generated: - Resource Reports: These reports present tabulated resource utilization schedules by resource and cost code. = Unit Cost Reports: These reports contain labor, material, and capital costs per unit of material handled for each cost code. - Consolidated Cost Reports: These reports contain total labor, material, and capital costs by cost code. 26LYVHOMOTS WALSAS LSOIdO 2 RNS AdvWWNS 3AILNIaXS ‘S10 S1a0dse 309 3 1s09 4SO3 LIND 4809 30yn0s3 COSTING REPORT ING RESOURCES INPUT- Executive Summary: This report summarizes labor, materials, total operating, total capital, and total project costs by year. 2.5 System of Units Units are specified during input of resource definitions. Consistency of units should be followed. For example, if a reference quantity has units of "TONS", and an equipment item is to be scheduled by "HOURS" as determined by equipment productivity, then the productivity units must be consistent with the units of the reference quantity and equipment item, i.e. "TONS/HR". OPCOST assumes consistency of units and will not convert inconsistent units. It is essential to maintain unit consistency throughout data input. The standardization of abbreviations will aid in the maintenance of consistent units. Table 2 is a recommended system of unit abbreviations. This list is by no means complete or unique and may be added to or modified by the user. Production or consumption rate units must be specified by the "/" symbol. TABLE 2 OPCOST Recommended System of Units TIME AREA Hour = tare Square Fe = "SE" Month = "Mo" Square Meters = "SM" Year = YR" Acres = "ace MISCELLANEOUS Cubic Feet == "CFM Percent = "PC" or me" Cubic Meters = "cHn Fraction blank set Cubic Yards = "cy" Kilowatt Hours = "KH" Gallons = "GA" Each = “BAN Liters = "ur" Units = UNITS" ox "UN" Holes = "HOLES" or "HO" ‘LENGTH Feet = cr" VALUE Meters = MRT Dollars = "9" WEIGHT ‘TIME Pounds = cpt Hours/hour AR/HR" Tons = om Hours/month “HR/NO" Kilograms = "KG" Hours/year "HR/YR" Metric Tong = "MT" DENSITY Pounds/Cubic Foot Kilograms/Cubic Meter Tons/Cubic Foot Metric Tons/Cubic Meter PRODUCTIVITIES/CONSUMPTION RATES Metric Tons/Hour = SMT/HR" Holes/Hour = "HO/HR" Cubic Yards/Hour = "CY/HR" 282.6 Resource Codes All resources, such as equipment, manpower, fue! or supplies, defined within a costing mode! must be assigned unique resource codes. An OPCOST resource code is composed of the resource type and item number and is a maximum of 7 alphanumeric characters: = The four leading characters in the resource code are alphanumeric and identity the resource type. The resource type code is a mnemonic description of the resource. Equipment EQUP Major equipment SERV Service equipment Manpower GENL Goneral administrative personnel STAF_ Staff personnel OPER Operating personnel WAGE Hourly personne! Consumables FUEL Fuel SUPL Supplies Fixed Costs CAPL Capital costs COST Operating costs Schd. Quantities XXXX Any four-letter name other than those listed above may be used to describe scheduled quantities, 0.9. ORE-, WSTE, OBDN, COAL, MILE, GALS, ROCK, etc. - The three (3) trailing characters are numeric and indicate the item number within the resource type. Leading zeros or blanks within the three digits are insignificant, that is: ‘1 tet t=! T= 01's" 01" = '001" = item number one 40" ="10' = "010" = item number ten The maximum number of items per resource type is 999. The fixed costs resource groups CAPL and COST are never referenced as individual items and therefore, will not require an item number. Zero or blank may be entered for the item number in this case. The recommended approach is to sequentially number resources for each specific Project rather than to standardize definitions for all projects. However, resources are not required to be sequentially numbered. If a resource is defined in data input, it is 29not necessary that resource item be assigned within the cost code structure, but if it is referenced within the cost codes, that resource must be defined. 2.7 Cost Code Definition The cost code is the most crucial element of a costing model since it defines the model hierarchy and references the item within the resource data base. Cost codes are composed of up to ten (10) digits following the protocol shown below. COST AREA LEVEL - COST DIVISION LEVEL COST CENTER LEVEL COST ITEM LEVEL COST ELEMENT LEVEL COsTCODE= AD Cc | — A five digit cost code (ADCIE) has been used in the example cost code hierarchy found in section 2.3. Cost code structures may be specified to contain form 9 to 99 levels within each Area, Division, Center, Item, or Element. Following are two examples of 7 digit cost codes having differing structures. AADCIIE - 2 digit area (99 max) ADCCIIE- 1 digit area (9 max) 1 digit division (9 max) 1 digit division (9 max) 1 digit center (9 max) 2 digit center (99 max) 2 digit item (99 max) 2 digit item (99 max) 1 digit element (9 max) 4 digit element (9 max) 7 digit cost code 7 digit cost code The cost code hierarchy forms a tree structure as illustrated below. This tree structure provides the cost tracking for the project. Through this structure, any cost can be traced to the element and resources generating the cost. 2.10COST CODE HIERARCHICAL STRUCTURE PROJECT AREA AREA AREA DIVISION DIVISION DIVISION CENTER CENTER CENTER rim ITEM ITEM ELEMENT ELEMENT «ELEMENT... The five levels of cost codes represent the major levels of project tasks and their respective levels of cost control. The following explanation uses a mining project for illustration purposes, but could represent any project. COST AREA - The highest hierarchical or ownership level of costing. Typically used to differentiate between independent sub-projects within a major project, @.9. Mining project divided by pit operations, processing plant, and refinery. COST DIVISION - The level at which the capital, major equipment, labor, etc, are accumulated. This level is the highest level of costing for major work centers in a typical operation, such as: ~ mine engineering = mine operations - mine maintenance COST CENTER - Used to break work centers into primary cost centers. For a typical work center such as “mine operations", these might be: ~ dewatering ~ overburden stripping ~ waste mining + ofe mining 241COST ITEM - Used to sub-divide primary cost centers into secondary cost centers. For a typical cost center such as "ore mining” these might be: = ore drilling = ore biasting = ore loading = ore hauling COST ELEMENT - The lowest hierarchical level of costing and is typically used to record specific details of resource usage. For ‘example for “ore blasting” the elements might be: + blasting foreman + powder truck blasting powder ~ blasting orew, blasters ‘A summarized cost code hierarchy for a mining project is given in Figure 3. Each cost code normally will have a resource assigned to it. Area, Division, Center, and Item cost codes typically are defined as reference quantities, the quantity used to calculate equipment utilizations from productivities. | Equipment, manpower, consumables, and fixed costs are assigned to Element cost codes. In addition to those resources assigned directly to cost elements, other resources maybe assigned to an Element through cost associations (Table 1). The resource types that may be assigned to cost codes are as follows: Scheduled Quantities XXXX PROJ TOTL Equipment EQUP SERV Manpower GENL STAF OPER WAGE Consumables FUEL SUPL Any four letter name other than those listed as equipment, manpower, consumables or cost may be used to describe scheduled quantities, e.g. ORE-, WSTE, OBDN, ROCK, GALS, FEET, ect. Major equipment Service equipment General Administrative personnel Staff personnel Operating personnel Hourly personnel Fuel ‘Supplies 212Fixed Costs CAPL Capital costs COST Operating costsFIGURE 3. TYPICAL COST CODE HIERARCHICAL SUMMARY 10000 11000 12000 12100 12200 13000 13100 13200 13300 13400 13500 13600 14000 . e 14500 15000 16000 20000 30000 40000 50000 PIT OPERATIONS-PRODUCTION CLEARING AND GRUBBING OVERBURDEN REMOVAL Dozer support Haulage WASTE STRIPPING Pioneering Drilling Blasting Secondary breakage Loading Haulage ORE PRODUCTION Haulage PIT LIGHTING ROADS, DUMPS AND ANCILLIARY DEWATERING PIT OPERATIONS-GENERAL MINE ENGINEERING MINE MAINTENANCE3.0 DATA ENTRY 3.1 General Information Input of project data, resource definitions and cost code hierarchy is handled entirely through the OPCOST main menu option MINP - DATA INPUT MENU. Selection of this option displays the menu shown below. EPROJ - PROJECT INFORMATION HIPERD - PERIOD DEFINITION ISCHD - MINE SCHEDULE MANPOWER IGENL - GENERAL EMPLOYEES ISTAF - STAFF EMPLOYEES IOPER - OPERATING PERSONNEL IWAGE ~ OTHER WAGE PERSONNEL CONSUMABLES IEUEL - FUEL ISUPL - SUPPLIES EQUIPMENT THQUP = MAJOR EQUIPMENT ISERV ~ SERVICE EQUIPMENT cost CODES ICODE = COST CODES The data input menu items are arranged by data type. Selection of any input option will either enter a data input screen or display a data item menu. The project information, and period definition selections will directly display the data input screen. The other menu selections display data item menus. Further selection a the data item menu will display the input screen for that data type. The sequence of data input is again in a top down fashion, entering the project control data first, then manpower, consumables, and equipment, and finally, the cost code structure. Since equipment items and cost codes reference other input data, it may be helpful to print a hard copy of the data as input prior to entering equipment definitions and again prior to entering the cost codes. Output reports of the input data may be generated by returning to the main menu and selecting the input data output menu. From this menu, data entered to this point may be output. (See Chapter 4 for listing of input data reports). After input data reports have been printed, return to the data input menu and continue entering equipment or cost code data. Keep in mind that all OPCOST results are based upon the resource definitions and the referencing of these resources through the cost code structure. Data input is a tedious task, and even the best key punchers make errors. By occasionally exiting data entry, OPCOST will perform data checking and verification as listed in Section 3.9 and save the data to disk. 343.2 Project Information Upon selection of the project information input option (IPROv) the following data input screen appears. [PROJECT INFORMATION: COMPANY NAME aT { PROJECT DESCRIPTION CAS [ MINE LIFE INFORMATION: LIFE OF MINE ~ PERIODS NOP (—) PRE-PRODUCTION PERIODS NPP ( —) START-UP DATE YEAR SYR (|) MONTH SMO (_ ) |cost CODE DATA FIELD DEFINITION: WHERE: A = AREA cc [ADCIE —]_-§ 0 10 DIGIT CODE D = DIVISION EXAMPLES: 5 DIGIT CODE ADCIE © = COS? CENTER 5 E 7 DIGIT CODE ADCIIEE Cost ITEM 8 DIGIT CODE ADDCIIEE = COST ELEMENT |FIXED PARAMETER INPUT: OPERATOR - HRS WORKED/YR POH ( ) OPER MANNING FACTOR POF ¢ WAGE - HRS WORKED/YR PMH ( ) WAGE MANNING FACTOR PWF ( —) ROUNDING FACTOR FOR EQUIPMENT AND MANPOWER PRF ( ) DECIMAL e.g. 0.20 SALVAGE VALUE: SVM (|) 1-Straight Line n-ACCELERATED SALVAGE WHERE n IS THE POWER FORCED SALVAGE REMAINING EQUIPMENT RT PROJECT END 0-NO_ 1-vES| ) DECIMAL FRACTION e.g. 0.10 FOR 10% The following data is required to define a costing model for a project: Project Information: ‘TTL - Company name used in report headings. CAS - Project description used in report headings. Mine life information: NOP - Life of mine in number of periods including pre-production periods. NPP - The number of pre-production periods. SYR - The project start-up year. SMO - The project start-up month. Cost code definition: CCD - Define all levels of cost code hierarchy. Select number and type of cost levels. For example, "ADCIE" is a five digit cost code. 32Fixed parameter input: POH - Number of hours worked per year for operating personnel. Worked hours equals hours paid less vacation, absenteeism, and other non-productive hours. POF - Operating personnel manning factor. Multiplier used to scale up crew size for fluctuations and tumover. PWH - Number of hours worked per year for hourly “wage” personnel. Worked hours equals number of hours paid less vacation, absenteeism, and ‘other non-productive hours. PWF - Hourly "wage" personnel manning factor. Multiplier used to scale up crew size for fluctuations and turnover. PRF - Rounding factor for equipment and manpower calculations. Calculated fractional amounts above this percentage will be rounded up. Salvage value: SVM- This factor determines the salvage value for major and service ‘equipment. If SVM is input as zero (0), no salvage value is calculated, If the equipment is retired at the end of its useful life, he salvage value is as input in the equipment definition. If an equipment item is retired before the end of its useful life, the salvage value is determined by the equation below. If SVM is one (1), then straight line reduction of value over the remaining life is use to determine salvage value. Else, if SVM is greater than 1, then the reduction of value is accelerated ‘exponentially, SVM becomes the exponent, and the salvage value is calculated as: a ( Life - age) sv = svi + ( CCL - svi) X aire) Where: sv = Salvage value SVi = Salvage value as input CCL = Capital cost as input Life = Equipment life in hours/months Age = Equipment usage to date in hours/months n= Exponent. SVF - Forced salvage of all remaining equipment at end of project: 0=No or 1=Yes. Enter "0" if equipment will not be salvaged at end of the project; enter “1” if all equipment items are to be salvage at the end of the project and the salvage valued will be calculate as described above. In either case equipment items will stil be retired at the end of their useful life. 3.3Capital contingency factor: CCF - This decimal value is used as a contingency factor to be applied to input capital and major and service equipment capital. Capital contingency is, reported only as a separate column on the executive summary reports. ‘The contingency factor is not used in any other reports. 3.3 Period Definition Upon selection of the period definition input option (IPERD) the following data input screen appears. PERD - ‘MINE LIFE PERIOD SPECIFICATION ENTER NUMBER OF MONTHS PER PERIOD By dividing the project life into periods, the number of months per period must be ‘specified for each period of the project. The default value of twelve (12) months may be selected, or the months per period may vary as required. The actual number of periods will depend upon the periods specified in the project information. The preproduction periods are represented by negative period values. Again the actual number of preproduction periods is dependent upon the number of periods specified in the project information. OPCOST provides the flexibility to specify time periods of differing lengths throughout the life of the project. For example, a twenty year project may be divided into 16 periods as three years of pre-production as one period, followed by quarterly periods for the first two years, then full year periods for the next five years, and finally, five year periods for the remaining two periods of life of the project. This example would be entered in months per period as follows:MINE LIFE PERIOD SPECIFICATION ENTER NUMBER OF MONTHS PER PERIOD 36 1: a 3 3 3 5 3 6 a: 39 7 10 2 1: = i213 W214 60 15 60 The project life is defined as the total number of periods for preproduction, production and shut-down. All data panels or output reports which specify period data will reference preproduction periods by negative numbers, and production periods by positive numbers. Time zero is assumed to be the start of production. 3.4 Schedule of Materials (ISCHD) Scheduled or reference materials are defined as those materials (ore, overburden, waste, gallons, or other tangible quantities) to be mined, removed, reclaimed, constructed, pumped or otherwise processed. Selection of this option displays a data item menu from which existing schedules may be edited or new material schedules created. The data input screen for material schedules is shown below. 1 The material schedule definition consists of the following for each material type: Material Type - Resource type (i.e. ORE - Ore Materials, WSTE - Waste Materials, OBDN - Overburden Materials, COAL - Coal) Item Number - Resource group item number (ie. 1, 1999) 35Description - Description of resource item. Units - Reference quantity units (Ie. TONS, CUYRD) Quantity schedules are to be entered for each period of the project. A material type and item PROJO MUST BE CREATED for the total project quantity. This schedule is required in calculation of project unit costs. If PROJO is not created, OPCOST will create the appropriate data line, fil it with zeroes, and then warn the user. OPCOST also internally generates subtotals-for each material type, except PROJ. These subtotal schedules are given the item number 0. Lastly, a total model schedule, TOTLO the total of the subtotals, is created internally. PROVO is easily created by duplicating and modifying the model total or any of the appropriate subtotal schedules. 3.5 Manpower Group The manpower group definitions are used to define manpower resources available for an OPCOST study. There are four (4) types of manpower definitions: GENLnn - General manpower including all other personnel paid on annual salary basis not described by STAFnn (optional) ‘STAFnn - Mine staff paid on an annual salary basis. OPERnn - Operators of major equipment paid on an hourly basis. Typically production personnel where the hours worked are associated with the operating hours for production equipment. WAGEnn - Mine labor including all other hourly paid personnel not described by ‘OPER. Typically support personnel where the hours worked may or may notdepend upon equipment hours (e.g., Maintenance Personnel, Clerks, ect). Selection from these options will produce data item menus comprised of any previously defined manpower resources. The data item menu allows the editing of existing manpower definitions or the creation of new manpower items. The data entry screen for each personnel classification is shown below. [GEN - GENERAL AND ADMINISTRATION MANPOWER JOB NUMBER [ ] JOB DESCRIPTION [ [SALARY G 0) s/yR 36star - STAFF MANPOWER JOB NUMBER [ ] JOB DESCRIPTION [ 1 [SALARY G 0) s/xR (OPER - OPERATING MANPOWER ]J0B NUMBER 7 JJOB DESCRIPTION [ i HOURLY WAGE ‘ 0) $/aR PAID HOURS/YEAR ( 2080 ) HR/YR [WAGE - MANPOWER - HOURLY PERSONNEL 308 NUMBER ta JOB DESCRIPTION [ 1 HOURLY WAGE ‘ 0) s/n PAID HOURS/YEAR ( 2080 ) HR/¥R The manning group resource definitions consist of the following information for each manning type: Job Number - Resource group item number (1.2. 1, 2, ...999) Job Description - Resource group item job description (i.e. DRILL OPERATOR) Salary - Total annual cost of personnel, includes salary, benefits and all burdens (GENL and STAF manpower resources only) Hourly Wage - Total hourly cost of personnel, includes salary, benefits, and all burdens (OPER and WAGE manpower resources only) Pd, Hoursiyr. - The number of hours per year that the hourly personnel is actually paid. Note that the productive hours worked on which personnel requirements are computed is specified in the IPROJ data entry screen. (For OPER, and WAGE manpower resources only). 3.6 Consumables The Fuel and Supply Group definition is used to define consumable resources. There are two types of consumable definitions, as follows: 37FUELnn - All consumable fuels, i.e., electric power, diesel, gasoline, etc. SUPLnn - All operating consumable items that require specific attention, i.e., explosives, drill bits, fertilizer, tires, wear items, etc. Selection from these options will produce data item selection menus comprised of the previously defined resource items. The data item selection menu allows editing of existing resources or the creation of new items. The data entry screen for both options is shown below. FUEL - FUEL DEFINITION ITEM NUMBER [ _] DESCRIPTION [ cost [$/unzT) Jur? cost PER PERIOD supL - SUPPLIES ITEM NUMBER [ ] DESCRIPTION [ cost [$/uNzT) luz? Cos7s PER PERIOD geevuunreee 38The Fuel and Supply Group definition consists of the following information for each consumable type: Item Number - Resource group item number (i.e. 1, 2, 99) Description - Resource group item description (i.e. Electric Power) Cost - Resource item units of cost recorded in cost per unit consumed (\.e. for fuels S/gal., $/kwh.; for supplies $/unit) Unit cost per period should be entered for each period throughout the life of the project. These cost may be easily repeated by replicating the cost from period to period (see Section 1.4 for details). The number of periods is dependent upon the number of periods entered in the project information. 3.7 Equipment Specifications 3.7.1 Major Equipment Group The Major Equipment Group defines equipment items that are directly involved in production operations. These equipment items are scheduled and operated on an hourly basis and commonly have productivity attributes associated with them. Selection of the Major Equipment option from the Data Input Menu produces a Data Item Menu listing the previously defined equipment. From this list, new equipment types can be defined or existing equipment definitions can be edited. The following is the Data Input Screen for major equipment definition. [EQUe - MAJOR EQUIPMENT Item Number [ ] Description { Capital cost ( 0) $ Salvage Value § Equipment Life ( 0) brs Scheduled Hours ( 0) hrs/yr Starting Units ( 0) units Average Age 0) hrs MAINTENANCE Materials t 0) S/he Manhours 0) hrs/he Wage (0) (OVee C=" 0) = (ues (| 0) Cee aC0) Fact (0) 0 ¢ 9 9) 9) 0) 9 OPERATING CREW Oper (0) 0 «OD 9) 0) 0) 0) ecto (= 10) 0 ¢ Oo 0) 0) 9) 9) CONSUMABLES Fuel/Supplies F( 0) F( 0) 0) s¢ 0) 0) 0) Units/Oper.hr ( 9) ¢ 9) ¢ 0 ¢ 0) ¢ 0 ¢ ) VARIABLE AVAILABILITY AND MAINTENANCE Age = upto (000) (10000) (15000) ( 30000) (100000) hrs favadlebility.: (220°05) | | (2u0200)| = |2( 20575) | 21) 80270)) |= (et0s70) Maint. Fact MeOPA0)E ee O5G0) a1 Cie 0890)1 tet te 0200))e 122201) 39Major equipment group definitions consist of the following information for each equipment type. Equipment Specifications: Item Number - Number from 001 to 999, unique for each equipment item type. Description - Equipment description (i.e., CAT D9 DOZER). Capital Cost - Total cost necessary to commission new equipment for intial and start up operation. This cost should not include consumable costs since they are incorporated into materials and supply cost on an hourly basis. ‘Salvage Value - Resale value of an equipment item at the end of its useful life. This value will appear in the equipment salvage report for the period in which ‘equipment is retired and as a credit to the project capital cost on the ‘executive summary. Equipment Life - Estimated economic operating life of the equipment item in operating hours. Scheduled Hours - The maximum number of hours each unit is scheduled to operate per year. Down time is deducted from scheduled hours (see Availabilty). Starting Units - Number of units owned at project start. ‘Average Age - Average operating hours on equipment units owned at project start. Maintenance Specifications: Materials - Material and supply costs per equipment operating hour. This is a lump. sum figure which incorporates repair parts and hourly dependent ‘maintenance costs except those items specified as Consumables. Manhours - Estimated average maintenance manhours per equipment operating hour. Wage - Maintenance crew specifications and requirements defined in terms of wage resource code (ie. WAGEO1, WAGE15). Up to seven (7) wage resource codes may be assign as required. Fact - Uttization factor defining the fraction of the maintenance manhours assigned to each of the specified wage personnel. The summation of the maintenance crew utilization factor should equal unity (1.0), if not, OPCOST will prorate any. values that are entered to unity. These prorated values will NOT be shown in the data fields. 3.10Operating Crew Specification: Oper - Fact - Operating crew specifications and requirements defined in terms of operator resource code (i.e. OPEROS, OPER24). Up to seven (7) operator resource codes may be assigned as required. Utlization factor defining the number or fractional number of each specified operator required to man this equipment item. The summation of the operating crew factors is the crew size required to operate each unit. Consumables Specifications: Fuels/Supplies - Units/Oper. hr - Resource code for the corresponding fuel or supplies consumed while operating this equipment item. Includes all consumables not accounted for within the Maintenance Materials hourly cost. Fuel and supply consumables may have variable cost throughout the life of the project. Up to two fuel types and four supply types may be specified. Consumption rate, expressed in terms of units or fractional units consumed per operating hour (2.g., gallons/hour). Variable Availability and Maintenance: Age - Availability - Maintenance - The equipment age in hours upto which the corresponding availability and maintenance factors will be applied. Factor which defines the fractional availability of each unit of equipment. Based upon equipment age ranges, it is possible to assign equipment avi lities which vary over the life of the equipment. Availability is entered as a decimal fraction not greater than 1.0 (ie. 1.0 available to operate all scheduled hours, 0.5 available to operate only 1/2 scheduled hours). Available Operating Hrs = Availability X Scheduled Hrs. Factor defining maintenance requirements for each equipment type. This fractional value can vary over equipment age ranges to reflect increased maintenance of older equipment (i.e. factor of 0.5, maintenance requirement only 1\2 of estimated; factor of 1.5, maintenance requirement 1 12 times the estimated). Actual Cost of Estimated Maintenance Materials = Maint. Factor X Cost $/Hr. Actual Maintenance Estimated Manhour/Hr. = Maint. Factor X Manhour/Hr. 3.13.7.2 Service Equipment Group Service Equipment may be defined as auxiliary equipment items that are of a secondary nature in the mine. These service equipment items are scheduled and operated on a monthly basis and do not have productivity attributes associated with them. Selection of this option produces a Data Item Menu listing the previously defined equipment. From this menu listing new equipment types can be defined or existing equipment definitions can be edited. The following is data input screen for definition of service equipment. SERV ~ SERVICE EQUIPMENT Item Number ( } Description { 1 Capital Cost 0) § Salvage Value o § ( Equipment Life ( 0) months Scheduled Time 0) mos/yr ( 0) units Average Age 0) months Starting Units MAINTENANCE Materials ‘ 0) $/mo Manhours 0) nrs/mo (0 ¢ Co (0) 9 op (0 ¢ % ¢ ¢ % = ¢ 9 Fuel/Supplies F( 0) F( 0) S(O) s¢ 0) Units/month oc o¢ one 0) Service equipment group definitions consist of the following information for each service equipment type. Equipment Specifications: Item Number - Number from 001 to 999, unique for each equipment item type. Description - Equipment description (i.e. 3/4 TON PICK-UP). Capital Cost - Total cost necessary to commission new equipment for initial start up operation. This cost would not include consumables since they are incorporated into a monthly materials and supply cost. Salvage Value - Resale value of an equipment item at the end of its useful life. This value will appear in the equipment salvage report for the period in which ‘equipment is retired and as a credit to the project capital cost on the executive summary. Equipment Life - Estimated economic operating life of the equipment item in operating months. ‘Scheduled time - The number of months each unit is scheduled to operate per year. Starting Units - Number of units owned at project start. 3.12