Hi Mining Top Tips Double!! WHAMMY!

Hi Mining Top Tips Double!! WHAMMY! 

Hi Six Tips for Business Improvement in Mining:

Throughout the years, the concept of ‘business improvement’ has evolved from a cost-savings initiative to a process that has driven efficiency and raised productivity across numerous industries. 

From companies like Toyota to Rio Tinto, it has been tweaked and adapted for any imaginable scenario and there’s a big markets out there seeking business improvement advice.

 

Business improvement can be a timely and costly process, but it can yield great dividends. 

To ensure your organisation will benefit from it, here are some simple steps for those in mining who are considering business improvement.

 

Needless to say, these tips won't be applicable to all mining companies, so pick and choose the appropriate ones & leave a comment on what other tips you have.

1. Examine your culture(s);

At the heart of any business improvement initiative is change management. 

Whether it’s new machines for steel workers or implementing an offshore payroll system, culture is at the core of what businesses do, and to change this requires great effort. 

To make it easier for you and your teams down the track, it’s important to examine the corporate culture.

 

It is critical to understand who will be affected by corporate changes and consider how to communicate the vision of change to relevant parties. 

Of course, different parties will have different views on how to adopt change and improve processes.

 

Also, notice we said cultures, not culture. 

One frustration for many business improvement projects in mining is that because mine sites are so remote, employee culture varies from each mine site, so it’s worthwhile to spend time upfront to understand each of them and draw up a plan of attack specific to the site.

  

2. Communicate, communicate, communicate;

Too much has been written about communication and its role in business improvement, so we won't go on. 

Whether it’s communication between the Business Improvements department and the rest of the organisation, or board-level members to employees, communication is a fundamental part of business improvement that should be both transparent and clear.

 

3. Accurate Planning;

 

Whether it’s meeting production targets or reducing carbon emissions, accurate and realistic planning can be difficult in mining.

 

As Ivan Woolridge, Principal Business Excellence Advisor at Newcrest Mining observes, 

- “There remains a culture in mining where human effort and ingenuity are pitting against the randomness of nature”.

 

There will always be unforeseen circumstances when working with nature, and sometimes ‘nature’ can be used as excuse when teams fail to meet production targets.

Whether or not this is an adequate reason depends on the organisation.  

In mining, targets are perceived as guidelines instead of fixed goals, leading to missed targets, delayed timelines and waste.

4. Have a clear vision;

Effective business improvement involves cross-departmental teamwork and a clear vision from leaders who are driving the change.

 

When Rio Tinto used business improvement principles in its iron ore division in 2008, chief executive Sam Walsh said:

 

“This is very fundamental in the way that we structure our work… it’s not the senior management that implement the sort of significant improvement on the ground - it’s actually every single person working within Rio Tinto Iron ore and working within Rio Tinto.”

 

In this light, Integrated Project Delivery (IPD) should be a top priority in a business improvement plan. 

By assembling as many of the project participants as practical in the very beginning of the project, it ensures all parties have a clear vision of the end goal in sight.

5. Don't lose focus;

Continuing from the above point, in day-to-day operations, it’s easy to forget that business improvement is ultimately a long term goal. 

When changes happen and budgets blowout, it can distract from overarching goals. 

In such situations, the appropriate action may be to take a step back and analyse how it will affect the overall project.

 

As David Long, formerly of Sutter Health Group notes, “Efforts to manage and improve performance are aimed at improving total project performance… it is more important than reducing the cost or increasing the speed of any one activity”.

 

6. Seek external advice;

Whilst a costly option, seeking third party advice from consultants and business improvement experts may prove worthwhile. 

Not only do they have a plethora of experience under their belts, but it’s likely they may have worked on mining projects similar to yours. 

It’s common sense to shop around to see what work an external provider has done and what feedback they've received to make sure they're a reliable source of advice.

*- "Do you have any other tips for business improvement for mining projects? Share them below in the comments section".

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Hi 5 Top Tips for Performance Managing Your Suppliers to Success:

A big focus that keeps coming up time and time again is that of supplier performance management and getting back to basics with what you expect from your vendors in the mining industry. 

Based on research with over 100 procurement and supply chain executives in the mining sector from companies such as Rio Tinto, MMG, BHP Billiton, Fortescue Metals, Thiess, St. Barbara, Orica Mining Services and many more, here are top tips for improving the results from your suppliers:

1.       Review all SLAs and contracts in place to identify core KPIs – many long-standing vendor relationships will be based on contracts that have been in place for years, or even decades sometimes. 

They are often drafted by people who have now left the company, so it’s important to conduct regular reviews of all SLAs and contracts to understand what agreement is in place on both sides, and to ensure the terms are still beneficial in changed market environments. 

If the terms are no longer relevant or suitable, then it’s time for a change! If they are, ensure they're actually being adhered to, measured and rewarded when achieved.

There’s no point in having great, structured KPIs if they're not then measured and acknowledged.

2.       Where applicable, using end to end category management to derive more value from your supplier expenditure – utilising market experts to drive ongoing savings without an “end point” in sight, can help extract significantly more from your suppliers. 

The sustainable results it can deliver actually go beyond simple cost savings, and can extend into additional value, opportunities and upgrades for organisations. 

E2E category management can also be used to better design the supply model and improve inventory management.

3.       Shortlisting vendors across all services and categories – having a permanent short list that you can review on an annual, or less frequent basis, can reduce a lot of wastage time for more transactional purchases. 

A clear list of requirements helps whittle down the applicants quickly, and safety standards should be top of this list in the majority of categories.

4.       Understanding your suppliers’ delivery cycles and inventory to minimise stockpiles and revenue sunk in assets – whilst the temptation is often to have excess inventory and equipment on site (rather have too much than risk too little and have production ground to a halt), this can end up in vast amounts of money sitting around in the form of assets. 

That revenue is very valuable to the GM of a Mine if it can be freed up.

5.       Involve your suppliers early in any system or project overhauls – bringing suppliers to the table early when there are any significant changes to your company workings is usually beneficial for all parties. 

As with any stakeholders, early involvement usually means more engagement in any changes. 

Bringing long-standing suppliers in early can also help with their expertise and ability to identify any problems or opportunities with system or project shifts.

* - "If you've got any top tips, let us know so we can share with our members!."