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 Open Cut Coal Mine

Context / Scope of project

Following the completion of a major capital investment to increase coal preparation plant capacity, our client was not realising increased production due to up-stream bottlenecks in the open-cut coal mining operations. In particular, capacity constraints in the Drill & Blast, and Truck & Shovel operations, as well as inefficiencies in the mine’s conveyor system, were limiting the ability of the mine to meet customer demand that had moved from 8.6Mtpa to a targeted 15Mtpa.

The client thus asked PIP to lead a structured and highly-focused business improvement initiative to lift the capacity of key bottlenecks across the mine’s thermal and coking coal operations. PIP/client teams were established within the Drill & Blast, Truck & Shovel, Coal Handling and Preparation Plant (CHPP) and the mine planning departments to identify and resolve the critical issues hindering operations. This far reaching and highly successful initiative impacted nearly all of the mine’s 1200 employees and engaged operational managers at all levels from the General Manager down to crew operators in the field. Importantly, continuous improvement disciplines were installed within each department to ensure the improvements would be sustained well after the PIP teams departed.

Client achieved:

  • ROM coal production raised by 45% (12.5Mtpa)
  • Raised the capacity of the mine’s major bottleneck, explosive loading, by 73%
    • Reduced operating delays by 6%
    • Reduced maintenance delays by 20%
  • Increased the capacity of the mine’s conveyor system by 45%
    • Reduced conveyor delays by 82%
  • Worked with HR to help close the mine’s critical production personnel shortages, increasing manning by 7% particularly within the Truck and Shovel operation
  • Data driven performance reviews and shift pre-starts were set up throughout the mine’s operations
  • Client ownership of and accountability for results has been maintained at all times.

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What we did:

  • Conducted Root Cause Analysis (RCA) on all major process delays and conducted Idea Generation Sessions (IGS) with key client personnel to identify optimal solutions
  • Closed raw materials supply gaps and removed bottlenecks in the supply chain logistics
  • Established Results-Action-Reviews (RAR) for the top 3 levels of management and lean board performance reviews with supervisors to monitor performance against KPIs and actions to resolve performance variances
  • Coordinated automation of KPI monitoring charts
  • Created concise results-focused shift pre-start meetings, to review previous day’s performance and provide detailed map and photo based instructions for day’s work
  • Put in place daily meetings between production and mine planning departments, to permit the identification of critical production deadlines and improve the coordination of the mine’s operations
  • Provided extensive coaching at superintendent and supervisor level to develop a culture of accountability and improve management of emerging issues
  • Coached client business improvement personnel on PIP methodology and established a system for continuous improvement.

 


 
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