Superior Productivity and Margins Using Modern Mining Management Systems

With commodities suffering dramatically low real prices, mining business margins are under intense scrutiny. Unfortunately, management systems developed early this century for manufacturing are driving counterproductive behaviours that choke productivity. The paper and presentation will explain this and present a proven methodology for increasing productivity. This will be supported by operational examples from Australian and American mining management to demonstrate the importance of modern business performance measurement and analysis systems. It will explain the importance of management systems in driving organisational change to sustain superior productivity and margins. The paper will explain why many executives and managers confuse production (a measure of volume) with productivity (which measures efficiency and effectiveness). It will explain how this and other counterproductive managerial and operator behaviours and attitudes are driven by traditional business management systems exacerbated by managerial and consulting fads. The paper will begin with the simple principle that to improve results one needs to first improve the process producing the result û and will show how this is often violated. Improving productivity then boils down to:accurately identifying opportunities using sound, modern measurement, analysis and reporting systems; methodically improving operating and commercial processes, and changing peopleÆs behaviours and attitudes to sustain changes in practices. The paper will include fundamentals of applying sound measurement and analysis to:processes directly, eg cycle time charts and their impact in cyclical (non-continuous) operations commonly used in rock breakage; drivers of productivity; and process results themselves since correct analysis identifies opportunities accurately. The paper will cover the importance of practical leadership and the need to follow a simple, solid plan for changing systems that drive behaviour. Overall, it will highlight use of modern performance Measurement, Analysis and Reporting systems to drive behaviours and improve margins - without capital investment û and make executive and managerial work easier and more effective.