Mining Company

NEEDS-BASED RESULTS

 

Mining Company

SITUATION

Management at a Canadian crude oil mine needed help to better coordinate all mine activities and resources to continually feed the crushers.

DRIVER GOAL

  • Produce 65 million more tons annually at $70 million less annual cost against prior year performance by year end.

RESULT

  • Reduced use of contractor labor and equipment by 22%.
  • Improved shift “hot changeover” time by over 30 minutes per shift.
  • Reduced rental budget by 50%.
CS-333 large

Case Study

Implement an Integrated Management System for Mining

PDF

Issue

Based on an extensive Discovery and Design engagement at this Canadian crude oil mine, Highland concluded that management needed to better orchestrate all mine activities and coordinate all resources to continually feed the crushers. Contractor costs needed to be controlled and coordinated with all mine activities. Expectations, roles and responsibilities were unclear and supervisors did not demonstrate the necessary skills and behaviors to effectively manage the diverse and expansive coordination activities. Management systems and controls across the site were ineffective and required enhancements. Meetings were ineffective and lacked ownership and accountability.

Highland Approach

The Highland Group partnered with client teams to develop and install customized tools, policies, procedures and training programs focused on driving up productivity while reducing costs.

Actions Taken

  • Designed and installed a System For Managing for Mining Operations and short-interval management tools and procedures leading to improved daily/weekly mine plan execution, increased productivity and significant budget savings and contractor cost-avoidance going forward.
  • Designed and installed comprehensive equipment rental policies and procedures. First-line supervisors set daily performance expectations for truck and shovel operators and follow-up throughout the day to ensure expectations are being met and identifying and addressing barriers.
  • Optimized shift and work schedules through performance-based planning and scheduling, significantly improving coordination of all mine operations and transforming “warring factions” into a smooth, coordinated production execution team.
  • Redesigned shift hot changes and operator lunch break procedures, which significantly reduced lost tonnage and surge pile reductions, leading to fee rate reductions to the extraction and processing areas.

Produced annual savings of

$70m

while improving SCL-only tons by 49.5%

Related Information

industry-based

Project Director

Mining

Europe

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.

Project Director

Working Capital

Europe

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).

Senior Analyst

Oil & Gas

North America

Joe is an operations professional with 25 years of impressive business results. He is an expert in operational planning, process optimization, and change management. He has designed and led implementation projects for a variety of clients across many industries, including aerospace, automotive, consumer products, food, insurance, pharmaceuticals and petrochemical.

Senior Consultant

and Geologist

North America

Cay is a senior mining consultant and geologist with over 20 years of industry, investment banking and consulting experience. She has extensive experience in the mining sector ranging from exploration and project development, mining and process operations, to project finance and management consulting.

Senior Analyst

Mining

North America

Luis is an executive with more than 15 years of experience in managing various mine implementation projects. Most recently, he has been the Lead Analyst for our Discovery and Design process. He is responsible for the assessment and quantification of opportunities as well as developing sustainable solutions for our clients.

insights