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Mining and Metals

NEEDS-BASED RESULTS

 

Mining and Metals

SITUATION

Integrated mining and metals business needed to free cash, improve operational performance, and standardize process across multiple sites.

DRIVER GOAL

  • Deliver significant one-off cash benefit and improve operational performance to deliver €17 - €25 million by December 2012.

RESULT

  • Delivered €6.5 million savings within the first nine months.
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Case Study

Improving Performance by Standardizing Processes Across Multiple Sites

Issue

An integrated mining and metals business with market leading positions in zinc and lead and growing positions in other base and precious metals had recently come out of bankruptcy and had already undertaken an aggressive cost cutting program. Leadership now wanted to focus on growing the business and identified three key strategies:

  • To quickly free up as much cash as possible to allow the organization to invest in acquisitions.
  • To improve operational performance, step change control and standardization across the group.
  • To restructure the organization to be able to cope with simultaneous projects.

 Highland Approach

The Highland Group began by analyzing the smelting operations located across three continents. The team identified three primary work streams on which to focus:

  • CVM: Closed loop contractor management system with controls and reporting to improve efficiency of contractor spend.
  • MRO and Spares: Correct inventory levels, ordered by the right people, stored correctly, at the right levels for the right reasons.
  • Procurement: Enhance group and site purchasing maturity, standardizing tools and processes for parts, materials and services including transportation.

 Actions Taken

Run as a group/corporate initiative, governed from HQ, joint teams targeted the individual sites and were able to define detailed action plans for delivering €7m to €10m in CVM, €4.5m to €7m in MRO and €5m to €10m in Procurement benefits across the group. The various sites integrated these benefits into their budgets. Highland Group consultants coached and developed client personnel in the new tools and processes.

 

Local management committed to additional savings of over

€17m

Related Information

industry-based

subject matter-based

Project Director

Working Capital

Hamid has over 20 years of experience as a management consultant. He has a wealth of experience in process and operational improvements, corporate strategic planning, development and deployment, global sourcing, supply chain management as well as working capital improvement experience (A/R, A/P, Contract & Vendor Management, Inventory, MRO/Materials & Supplies).

Director of Operations

Mining & Metals

Collin is a senior operations executive with 24 years of experience, including Mining & Metals performance improvement projects that convert strategic intent into deliverable actions. An enthusiastic team leader and player who believes in consensus building and participative decision-making, Collin’s recent work has spanned the United States, Canada, Mexico, Brazil, Colombia, Chile, Jamaica, Indonesia, Madagascar, North Africa, West Africa and South Africa.

Project Director

Mining

Sean is an executive with more than 17 years of experience in operational management, process improvement, cost reduction, revenue enhancement and consulting in multiple industries, including mining. He has participated in several operational engagements in the mining sector worldwide.

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