A Productivity Attitude

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