Mining For Long-Term Value
In the process of carving out a new $30 billion division, a global mining company needed support evolving its legacy production system to the reality of the new business. The revised production system was designed for flexibility and ability to both drive greater value creation and to reduce risk, in contrast with the legacy, top-down compliance-based system of its past.
Challenge
In the process of carving out a new $30 billion division, a global mining company needed support evolving its legacy production system to the reality of the new business. The revised production system was designed for flexibility and ability to both drive greater value creation and to reduce risk, in contrast with the legacy, top-down compliance-based system of its past.
However, the redesign represented an enormous overhaul for the company. Changes are required in all facets of its production system, from its overall management model framework design to the assessment process and governance, including its document structure to managing compliance and risk. The new production system included the introduction of formal Management Philosophy Principles and full redesign of an Operating System to embed the principles into the organization and to drive performance and long-term value creation.
dss+ Approach
dss+ Phase 1 conducted a broad assessment and redesign of the production system. More than 200 client interviews across the globe took place, the results of which were used to compare to industry peers and evaluate the effectiveness of the current system. Subsequently, departmental focus groups were facilitated to align the business with the new goals and vision for the updated production system.
Following the assessment Phase 1, the dss+ team completed a Phase 2 which proposed very specific changes to the production system and created a detailed implementation roadmap of the new design. Every change was structured to drive long-term value creation and better manage critical risks. They included embedding “Thinking Way Principles” through a careful program of change management, performance improvement initiatives, and a framework to drive long-term value creation and strengthening compliance.
Assignment
Review, redesign and implement a new production system
Offering
Production Systems/Operating Model,
Enterprise Risk Management, SIF, Operations
Excellence Consulting
Impact
- The goals for implementing the new Production System across all sites included increasing EBITDA by $1B+, improving Asset Integrity, improving safety and to better manage critical risks