What Finance Needs to Know About Measurement Risk

SR Measure has a high degree of accuracy in measuring stockpiles. However, challenges arise when parts of a stockpile aren’t directly visible to the camera. Understanding how these areas are estimated is critical to finance and operations teams. How does SR Measure tackle this challenge? Let’s delve deeper.

The Challenge of Invisible Pile Areas

When measuring a stockpile, some areas remain hidden from the camera’s view. For instance, if the camera is held at ground level while capturing the video, some portions at the top might not be visible. This lack of full pile visibility poses a challenge for any camera-based measurement tool.

SR Measure’s Intelligent Surface Estimation

Here’s where SR Measure’s robust technology comes into play. When the app detects the lack of visibility in some areas of the pile, the app doesn’t just omit them. Instead, our algorithms analyze the visible shape and slope of the stockpile. Using this data, SR Measure performs a pile surface estimate to fill in the gaps. Our proprietary algorithms understand the typical shapes and slopes of piles, using artificial intelligence to make an educated guess on what the hidden surface would likely look like.

Watch our Chief Scientist, Jared Heinly, describe the process SR Measure uses for intelligent surface estimation to fill in gaps.

Even if a part of the pile wasn’t captured by the iPhone, SR Measure still calculates the volume, so measurements are accurate. SR Measure doesn’t provide estimates based on wild guesses – our algorithms leverage the inherent properties of the stockpile to provide a reliable measurement.

Visual Representation for Better Analysis

Once a measurement is complete, SR Measure provides a 3D model of the stockpile, including its contours. The model displays red hash marks on the pile. These marks highlight the areas that weren’t visible in the footage but have been estimated by SR Measure.

This visual aid is particularly beneficial for professionals in the field. SR Measure displays the areas where visibility of the pile was compromised and offers insights into how measurements can be improved in the future. While capturing a perfect stockpile is a rare scenario, especially in busy production sites, these visual cues can guide better positioning and recording techniques in subsequent measurements.

Understanding Measurement Risk

Every stockpile measurement carries a degree of risk: There’s always a possibility that the measurement might not fully represent the actual volume due to unseen areas. SR Measure’s red highlighted areas are clear indicators of where these risks lie. By providing a visual representation of estimated areas, the app ensures that users can instantly recognize where assumptions have been made in the measurement process.

Measurements in the enterprise-level version of SR Measure display toe and surface areas, score the risk, and list possible reasons for the risk.

Significance for Finance and Audit Teams

For finance and audit teams, understanding risks associated with stockpile measurements is crucial. These measurements are often reported on financial statements. Any inaccuracy can lead to potential financial discrepancies, and precision or consistency of measurement methods and assumptions is crucial to the integrity of financial reporting.

By highlighting measurement risks, SR Measure aids finance professionals by:

  • Transparency: Clearly highlighting areas of interpolation ensures that there are no hidden surprises. Finance teams can see where and to what extent estimations were made.
  • Risk Assessment: By visually signifying measurement risks, SR Measure allows finance and audit teams to assess the potential impact of these risks on financial statements. They can then make informed decisions, whether it’s adding notes to financial statements, making adjustments, or taking other actions to mitigate potential financial impacts.
  • Improving Future Measurements: The visible risk indicator also acts as feedback. Finance teams, in coordination with site managers, can strategize on how to reduce risk in future measurements, enhancing the accuracy and credibility of stockpile inventory over time.

A Step Towards Greater Financial Integrity

By highlighting measurement risks, SR Measure is not just improving the technical aspects of stockpile measurements; it is also contributing to better financial reporting and oversight. As companies strive for greater transparency and accuracy in financial reporting, tools that provide clear visibility into potential risks are invaluable. SR Measure’s approach to showcasing interpolated areas exemplifies a commitment to accuracy, transparency, and continuous improvement in stockpile measurement and the financial implications of reporting those estimates.