Mining For Operational Excellence

Operational excellence is generally known as a management system integrated across critical functions that is geared towards continually improving operational performance. Functional areas such as health, environment and safety, quality and human resources are the focus of many corporate-wide operational excellence programs. Operational excellence also focuses on improving areas such as customer orientation, employee empowerment as well as process, and systems optimization. It is widely viewed as critical to sustaining business performance improvement. Although it is difficult to find a universally accepted definition, or even common foundation in many respects, operational excellence remains a popular term in the business world. Many organizations have developed their own version of organization excellence, influenced by such individual factors, other similar institutions or even third-party service providers. A mining organization is no different from other organizations in that adopting and implementing effective operational excellence programs can dramatically improve business execution and performance across regional or global interests. This paper brings together various perspectives of operational excellence and reconciles them for a useful composite for the mining industry. While most agree that operational excellence should include normal functions in a manufacturing operation such as production, maintenance and engineering and processes such as quality, environmental and continuous improvement, many other factors for operational excellence seem to vary from perspective to perspective. Thus, programs that manufacturers engage in may seem the same, but may, in fact, be different in key areas. This may affect organizational performance in tangible ways. Management must buy into the company?s definition of operational excellence and be dedicated to achieving it. A review of many of the existing definitions of operational excellence, explicit or embedded as part of a program, seems to yield the following common factors: ? It should help organizations better execute their processes and services. ? It should be geared towards improving quality ? It requires that the various operations should be aligned with the overall enterprise strategy. ? It should be geared towards continuous improvement. A composite of operational excellence definitions suggest that it is: ? Geared towards helping the organization achieve sustained profitability; ? tied to strategic alignment and business objectives; ? tied to solid investment strategies; ? integrated as part of the culture, process, time plan and performance; ? a relevant performance measurement system; ? extended to include all aspects of the supply chain (including external suppliers); ? integrated with health, safety and environmental (HSE) aspects. And, while the pursuit of operational excellence intuitively suggests that businesses should improve, it is very difficult to achieve given the difficult challenges facing companies today. Mining businesses face numerous pressures to perform in a global marketplace such as demand, energy cost, variable cost and pricing fluctuations as well as infrastructure challenges to further confound the environment. Companies generally must look to the following: