Operation Survival

Tough times need tough solutions. This article gives an overview of one mine’s survival strategy. By taking a calculated and unorthodox risk, the mine survived with improved work practices and energized middle management. When metal prices fell to a point where we faced closure, our mine began a series of cost reduction measures under the banner of ‘Operation Survival’. This was facilitated by a third party professional.

It worked thus: middle management (Chief Engineer, Purchasing Manager, Mine Electrical Engineer, Mine Captains, OH&S Coordinator, Metallurgical Engineer, Maintenance Manager etc) were given three months to make a difference in an area within their expertise, or outside it if they could! Target areas for cost reduction were weighed up during a kick-off session and then it was off to the races, with weekly feedback (very high visibility) to the entire workforce, senior management and ultimately executive management. Multidisciplinary teams with technical and operational personnel were formed, each with a leader. The twist, which might differentiate this from other cost reduction measures at other operations, was that each of us in middle management was given (within reason) senior management authority to make decisions without the interference, presence or scrutiny of senior management. In fact, senior management (GM/Mine Manager/Mill Manager/HR Manager/Finance Manager) were invited to the kick-off, and the close-out three months later, but that was all.

So we were given the tools and authority to make a difference. People want to be included in something big, and then be acknowledged for their contribution. We were given a forum where the results (and acknowledgement) were highly visible. Fear of underperforming is also a motivator. Often middle management know where the excess and inefficiencies are, and where there is room for improvement, but don’t necessarily have enough leverage to make a real difference and can be tired of trying. Our cost improvements targeted productivity increase as much as cost reduction. A significant reduction in operating costs was achieved, which included some of the following successful changes:

• All suppliers were contacted with a request to reduce prices or potentially suffer the consequence of closing the mine gates. They were incredibly responsive and generally made concessions.
• The mine shift schedule was changed to suit the way we worked and not to suit the old mindset. Loader/truck operators were scheduled earlier than the development crews to get faces cleared before development crews arrived. Other loader/truck operators were scheduled into the two hour dead time between shifts to keep ore moving to the crusher as much as possible. The crusher operating shifts were adjusted to meet the load/trucking schedule.
• Specific consumables that are prone to wastage were closely tracked and accountability was set in the most visible way – electric cable, ventilation duct, pipe, submersible pumps etc.
• Many of our operational difficulties stemmed from the fact that we had no drilled or broken reserves. We were living hand to mouth and blaming poor ground conditions, water and anything else for all our woes. Production drillers waited on ground support crews, who waited on development crews, who waited on backfilling crews and there was never anything in front of us. Somehow three months later we managed to have a pre-drilled inventory of one month’s stope production by making small changes, such as training an extra driller so that a long hole rig didn’t sit idle if somebody fell sick.
• Lost time to refuel equipment at the start of shift was reduced by assigning a maintenance person to do this between shifts.
• The Technical Services roster was staggered to ensure the timely support for all shifts, including the weekend.
• Underutilized equipment was identified, sold or retired.

There were many other successes attributable to the empowerment of middle management. Operation Survival was testament to the power of creating a true team, where all are empowered and jointly take responsibility and reward for the survival of an operation at risk, through a seamless chain of ownership and accountability.

Colm Keogh