The Rewards of Lean and Six Sigma in Mining
Contributor:
Mining IQ Editorial
Posted: 04/09/2012 12:00:00 AM EDT | 0
The rewards of Six Sigma are not only limited to more efficient operations. Ultimately, companies are seeing direct improvements in their bottom line.
The 2010 Sustainable Development report from New Zealand Aluminium Smelters Limited, which owns the country's only aluminium smelter, estimates they made savings of NZ$18.7 million during the year as a result of its Lean Six Sigma initiatives.
Other initiatives to come out of business improvement programs like Six Sigma and Lean include minimised shutdowns, increase gold production and increasing chances to hit annual plans.
Clearly, there are plenty of various opportunities for mining companies to benefit from Lean and Six Sigma. However, their implementation will not always yield immediate results.
In a 2008 speech given by Rio Tinto’s chief executive Sam Walsh stated: "[Six Sigma] is a very fundamental change in the way that we structure our work, actively engaging, actively involving, actively communicating with our people.”
Posted: 04/09/2012 12:00:00 AM EDT | 0
|
|
Over the years, Six Sigma and Lean have worked their way to become the preferred tools for business improvement. Whilst their roots began in manufacturing, many other industries are also seeing its rewards. The mining industry is no different.
Faced with rising operations cost and huge demand for resources, more mining companies are now looking at how to eliminate waste and improve processes.
Fresnillo, the world’s largest primary silver producer and Mexico’s second largest gold producer credits the implementation of Six Sigma with helping it achieve record silver and gold production during the final quarter of 2010.
"Our newest gold mine, Soledad-Dipolos, was an important factor in this excellent performance, as well as efficiency measures at our mines and the implementation of the six sigma management tool improvements," chief executive Jamie Lomelin said.
The rewards of Six Sigma are not only limited to more efficient operations. Ultimately, companies are seeing direct improvements in their bottom line.
The 2010 Sustainable Development report from New Zealand Aluminium Smelters Limited, which owns the country's only aluminium smelter, estimates they made savings of NZ$18.7 million during the year as a result of its Lean Six Sigma initiatives.
Whilst some organisations are taking time for the results of business improvement measures to bear fruit, Newmont Ghana has projected savings of up to $3 million – only several months after Lean belt training was provided.
Other initiatives to come out of business improvement programs like Six Sigma and Lean include minimised shutdowns, increase gold production and increasing chances to hit annual plans.
Clearly, there are plenty of various opportunities for mining companies to benefit from Lean and Six Sigma. However, their implementation will not always yield immediate results.
The important fact to remember when putting these business improvement processes in place is that they do not come overnight and successful implementation requires the participation of the whole organisation.
In a 2008 speech given by Rio Tinto’s chief executive Sam Walsh stated: "[Six Sigma] is a very fundamental change in the way that we structure our work, actively engaging, actively involving, actively communicating with our people.”
"It's not the senior management that implement the sort of significant improvement on the ground it's actually every single person working within RioTinto Iron Ore and working within Rio Tinto."
|
Contributor:
Mining IQ Editorial |
-
Industry Insight: Drill & Blast Operations at Thiess -
How Newmont is Integrating Sales Operations Planning with Supplier Relationship Management -
Unconventional Hydrocarbons: Overcoming Environmental Concerns for Coal Seam Gas -
Mining in Mexico - A Wise Investment? -
Mining in Space: Google takes the Front Seat -
Process Control - What Are the Potential Gains Through System Upgrades? -
SCADA Systems: For Process Security And Optimisation -
ASX pushes Ahead with Disclosure Rules for Australian Mining Companies -
To What Extent is Safety a Behaviour or a Process: Mining IQ Industry Discussion -
Less Red Tape for Canadian Miners
* = required.
Not a member yet? Sign up
You Should Check Out:
Advertisement
Events of Interest
-
Latest Webinar! Learn how to Increase Productivity in your Mining Operations
June 5, 2013
Register Now -
Why Managing Fuel Price Risk Now Can Save you in the Long term
February 28, 2013
Register Now -
At last - A Sure fire Way to Reduce Unit Costs at your Mine Site is Uncovered
February 20, 2013
Register Now -
Revealed! How energy growth will increase by 36% by 2030 – BP’s Leading Chief Economist, Christof Rühl Shares Insights
May 2, 2013
Register Now
Advertisement
|
Reach Mining professionals through cost-effective marketing opportunities to deliver your message, position yourself as a thought leader, and introduce new products, techniques and strategies to the market.
Learn More » Join today and interact with a vibrant network of mining professionals, keeping up to date with the mining industry by accessing our wealth of Mining articles, videos, live conferences and more. Sign Up Today! |
| Mining IQ, a division of IQPC 2013 All rights reserved.Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Careers With IQPC | Contact Us | About Us | Cookie Policy |
|
Not a member? Sign Up
Reasons for Joining
Address your challenges through knowledge sharing with peers from our global network of specialists.
Benchmark your business initiatives with the who's who in the field.
Hear from industry pioneers how to maximize ROI in today's challenging economy.
And best of all It's FREE!