Six Tips for Business Improvement in Mining
Contributor:
Mining IQ Editorial
Posted: 09/24/2012 12:00:00 AM EDT | 0
1. Examine your culture(s)
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.
4. Have a clear vision
Effective business improvement involves cross-departmental teamwork and a clear vision from leaders who are driving the change.
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.
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.
Posted: 09/24/2012 12:00:00 AM EDT | 0
|
|
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 and 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 up front to understand each of them and draw up a plan of attack specific to the site.
2. Communicate, communicate, communicate
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 (IDP) 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.
We also have two upcoming events focused on Business Improvement in Mining. If you're interested in the one happening in Minas Gerais, Brazil, click HERE. If you're interested in the one in Brisbane, Austraia, click HERE.
|
Contributor:
Mining IQ Editorial |
-
Ivory Coast Plans 19% Windfall Tax on Gold Miners -
Australia needs to act on conflict minerals -
Should Malaysia bear the burden of Australian radioactive waste? -
Drill and Blast: How to Achieve Cost Effectiveness and ROI -
Swimming with Sharks……a Yarn from Oz -
Dust Control at Mine Sites: A Blogger's perspective -
Six Tips for Business Improvement in Mining -
Controversial Mining Companies - Under the Microscope -
Zero Harm and Safety at Work: WA under the Microscope -
Monthly Mining News Wrap Up - September 2012
* = 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 -
Revealed! How energy growth will increase by 36% by 2030 – BP’s Leading Chief Economist, Christof Rühl Shares Insights
May 2, 2013
Register Now -
How to Create your First Webinar (and Generate Dozens of Highly Qualified Leads)
March 7, 2012
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!