The primary aim of these articles is to get members of the
mining community to think about productivity. Productivity is about
attitude. Much can be learnt about the theory behind operating different
pieces of equipment and improving productivity but if the mine does not have a
‘culture of productivity’ then achieving best practice is virtually impossible.
Being innovative helps but just doing the simple things well is a
really good start.
The profitability of many mines is highly leveraged
against the productivity of the major earthmoving equipment and thus
significant management effort should be focussed on getting the most out of
this equipment. Unfortunately exactly what this entails is not always
well understood and often other activities are given preference sometimes to
the detriment of equipment productivity. The actions of mine planning,
blasting, scheduling, maintenance and man management all play a significant
role in production but need to have a common productivity focus or else they
can negatively impact the equipment performance.
Figure 1
Figure 1 is the way many mines are run. The
processes in running the mine and the requirements of the corporate entity
simply work against getting optimal performance. In addition, people with
an innovative attitude soon get put in their place and drowned within the
bureaucracy. People on these mines are too concerned with ticking career
boxes and making sure the processes are all in place, but when it comes to
doing something there is always a good reason not to.
Figure 2
The productive mine (Figure 2) shows a different flow of
“impacts”. We now make the equipment productivity central to the mine’s
performance, (which is exactly where it should be…surely). People and
personalities become less important and the requirement for equipment
productivity becomes of primary importance.
The equipment productivity is now “driving” other aspects
of the mine operation. It is no longer acceptable for mine planning to
impact productivity negatively; they know what is expected of the equipment and
they produce plans which help the equipment achieve it. Blasting,
scheduling, maintenance, management, etc. are all the same. The mine has
an expectation of performance (which I believe should be dictated by what best
practice machines achieve) and every role within the mine should be singularly
focussed on helping the mine achieve the required productivity. We have
inevitably found that this is the way which mines achieving best practice
operate.
There is a saying along the lines, “the best things in
life are free”. I find it hard to forget as I had to debate this in Year
10 English. I now prefer to say that the best productivity improvements
are free (or nearly free). Productivity is about people and attitude and
it costs no extra for a mine to have a “productivity attitude”.
I have referred previously to Robe River Mine and the
upheavals which took place in 1986 under the guidance of Charles Copeman.
At the end of the resources boom which commenced in 1977/78, mining companies
were starting to tighten their belts. Unfortunately this belt-tightening
was resisted by workforces which had become accustomed to getting things their
own way. This attitude was promoted by management which made money
despite themselves. Robe River was the first to face the prospects of an
extended “difficult” period by attempting to change the attitude of the
mine. I suspect Charles Copeman knew where it would lead as changing a
culture is not an easy thing to achieve. When change did not come Copeman
sacked the management team and installed “his” team of people with the attitude
he wanted. Copeman recognised that change had to start at the top and
work its way down. Sure, it did eventually work its way through and the
workforce was sacked and then selectively reemployed some on significantly
different working conditions, but the important lesson to learn here is that
the change started with management.
This was the start of the depressed period I call the
“Downsizing Period”. It ran from about 1986 – 2001. I remember one
day going on to a mine site (1996 I think) I often visited which had a big sign
out the front. Employee numbers usually ranged from 380 – 400. This
day, the number was 196. I had to look at it a couple of times but it
made an indelible impression on me.
The mining industry has now entered the next difficult
period. Forget the super-cycle or a quick rebound. The largest
economy in the world is bankrupt as is the Eurozone and demand for goods will
remain depressed so demand for commodities will remain depressed. I
believe this period will run at least 12 more years (probably longer).
Most mines are now like the proverbial stone which has had the blood ringed
from it when it comes to people. You just can’t keep cutting people and
keep the mine going. Once Executive Management and Boards of Directors
realise that prices are coming down they will have no option if they want to
stay in business but to chase improvements in equipment productivity. I
wonder if they will follow Charles Copeman’s lead and start with mine managers
who accept mediocre or average performance (in this case of their
equipment)? Most operators’ jobs are safe because most of them actually
want to do a better job and just need management to help them achieve it.
Graham Lumley
BE(Min)Hons, MBA, DBA, FAUSIMM(CP), MMICA, MAICD, RPEQ
