Mine on Demand
MMI
Productivity has become the new mantra in recent years for the
mining industry. Ever since the “super cycle” of the commodities
price boom came to an end, industry executives have realized
that a blind chase for value can lead to significant structural costs
and productivity defects in the mining process, which ultimately
decrease profit. Many chief executive officers (CEOs) have
responded to this market volatility by making significant cuts in
capital investments.
Possessing more operational (“back to basics”) profiles than their
predecessors, industry leads now realize that in addition to
improving short-term cash flows, they need to:
●● Make sustainable gains in productivity. Programs aimed
at improving productivity need to have an enterprise-wide
impact, beyond pilot programs that address people or equipment.
These productivity initiatives also need to be accepted
across all operations and made sustainable going forward by
emphasizing truly continuous improvements.
●● Respond with more agility to fluctuating market
demands. Business agility requires a supply chain design that
enables faster responses to shifts in market demands and
prices. With improved business agility, it’s possible to optimize
net results per quarter—right down to margin-per-hour
operations.
Transforming the supply chain design in this way requires a
forward-looking understanding of market demand, scenariobased
planning, optimal resource allocation and flexible scheduling
decisions—all of which necessitate changes across people,
technology and processes.