Contract Mining Performance Improvement

MOS implementation increases productivity and reduces cost

Our client is a mining contractor providing load and haul services to an Australian tier-one coal mining company. The contractor recognised the need to stabilise and improve their commercial performance to support the continuity of their current contracts and underpin ambitious growth plans.

The strategy to transform performance involved implementing fundamental elements of a Mining Operating System based on lean management principles. This aimed to deploy operational objectives across the business as KPIs using visual management and create forums for effective daily operational performance management.

The following objectives for the program were defined:

  • Improving productivity and reducing cost
  • Increasing market share by improving competitiveness
  • Fostering a continuous improvement culture

$415k

Increase in annual revenue from First/Last Load initiative

180 Hour

Increase in annual excavator utilisation

$700k

Saving in annualised penalties for absenteeism
Daily problem-solving system established to drive continuous improvement

The approach

The ORBZ team engaged the client’s senior leadership team to develop and document the strategy, including a detailed deployment plan to communicate with all employees at the head office and across the operational areas at each site.

The Prosci ADKAR® change management model would ensure company-wide change could be made and sustained through effective communication and engagement throughout the program. The robust change management process made each stakeholder’s role clear and accountable for successfully delivering individual projects.

The solutions

Phase one of the implementation program involved training the workforce in lean management principles and MOS tools and methods.

Phase two of the program focused on designing a tiered Visual Performance Centre (VPC) system for implementation at the Brisbane head office and site operations.

The site-based VPCs enable operational teams to track performance through a set of critical metrics that highlight when day-to-day issues impact the delivery of customer objectives. The head office VPCs enable the senior leadership team to manage the organisation’s overall commercial performance effectively.

Each VPC operates as a daily problem-solving forum to drive continuous improvement whilst permanently resolving historically reoccurring issues.

ORBIZ led an extensive program of problem-solving process training and coaching to embed the behaviour of a performance culture and enable the resolution of complex problems at the lowest possible level.

Phase three of the program introduced a Project Performance Centre (PPC) to create a forum for managing longer-term, capital-intensive works by visualising, assessing, prioritising, and implementing each initiative in a structured and controlled manner.

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