At a Glance
- A producer and exporter of copper concentrates in its home country wanted to optimise its operations and explore opportunities for the development and commercial distribution of marketable by-products
- Renoir developed solutions for three work streams – Mine and Mill Operations, Maintenance and Procurement, and Organisational Design
- The improvements implemented for the company have resulted in a significant change in performance, including increased productivity of excavators and dump trucks
Background
Our client is a diversified natural resources company with significant mineral holdings in Asia. They are the largest copper producer in their home country and in the Asian region.
Their copper mine is operated by a wholly owned subsidiary, which is a primary producer and exporter of copper concentrates in its home country.
The subsidiary is looking to optimise its operations in line with the expansion of its beneficiation plant. This subsidiary is also exploring opportunities for the development and commercial distribution of marketable by-products from the processing of its copper concentrates, including molybdenum, magnetite, and pyrite.
The Challenge
Renoir was engaged to help reduce the subsidiary’s operating costs. The project covered all aspects with a projected minimum savings of US$5.16 million on an annualised basis.
The project was divided into several work streams, with the following objectives:
- To improve planning and productivity within the mining and milling operations.
- To improve maintenance planning, productivity, and reliability, and to review current spares and procurement practices.
- To optimise the organisational structure for greater efficiency.
Project Approach
A Management Action Team (MAT) was established for three work streams: Mine and Mill Operations, Maintenance and Procurement, and Organisational Design. Each workstream was led by:
- Chief Operations Officer for Mine and Mill Operations
- Mill Maintenance Division Head for Maintenance and Procurement
- Assistant Vice President for Human Resources and Administration for Organisational Design
These workstream arrangements enabled direct engagement with the relevant departments and stakeholders in the implementation of the required improvements, resulting in maximum impact and buy-in.
Implementation
The project kicked off with Renoir’s Focus Process®, a methodology developed from our experience with hundreds of successful engagements. To develop solutions for the workstreams, we analysed the existing processes, adapted and incorporated best practices throughout the project.
The subsidiary’s team members went through a learning experience that fostered commitment and ownership of the solutions being implemented. All of this was rolled out simultaneously, ensuring that the solutions were aligned with the organisation’s goals and corporate identity.
Our consultants worked with each MAT, to implement the new Management Control System (MCS). Employees were trained, coached, and supported in the implementation of the new MCS.
Elements of the MCS outlined responsibilities and provided clear work processes for implementers. The management team conducted timely operational performance reviews to ensure better operational management, control, and communication within the teams.
In addition, Renoir developed an organisational design manual to assess and validate the skills and knowledge of each team member. A new organisational structure was designed for each department associated with the workstreams.
“Renoir’s strong commitment and remarkable abilities have helped our company attain the improved operational performance and their continued involvement will ensure the sustainability of these achievements.”
President and Chief Executive Officer (CEO)
Different activities were implemented for each workstream:
Mine and Mill Operations
- Defined roles and responsibilities in the RACI chart, or Responsibility Assignment Matrix, to ensure clarity accountabilities and responsibilities for the new processes.
- Designed a behavioural audit mechanism to monitor team member performance.
- Designed and implemented the line balancing forecast model to improve production planning and to achieve planned production targets.
- Established operational Key Performance Indicators (KPIs) with visual performance dashboards.
- Implemented new ways of working by reviewing work processes to increase productivity and improve preparation for mine operations.
Maintenance and Procurement
- Designed and implemented a maintenance and supply chain MCS to effectively manage operational processes in support of business objectives.
- Introduced standardised tools to manage processes effectively, such as the Risk Assessment Matrix, job standards, inspection checklists and root cause analysis.
- Introduced supply chain tools covering supplier management, purchase order service level agreements, and the establishment of Material Requirements Planning (MRP).
- Redesigned and standardised maintenance processes, including planning, execution, and reporting.
Organisational Design
- All departments – Mine, Mill, Maintenance, and Supply Chain – established KPIs for the Performance Appraisal Management System (PAMS).
- Completed self-assessments and validations for frontline staff in various departments.
Results
“The introduction of the design system element from Renoir significantly improved maintenance approach. The overall effect has been an increase in productivity.”
Mill Maintenance Division Head
11% ↑
excavator productivity
12% ↑
drill availability
134% ↑
crusher planned maintenance
21% ↑
dump truck productivity
304% ↑
Goods Receipts compliance
39% ↑
mill planned maintenance
The improvements implemented for the company have resulted in a significant change in performance. The overall targets of the project have been achieved and there is now a solid foundation for continuous improvement.
*We have intentionally omitted client-specific details to uphold strict confidentiality.
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