CASE STUDY

Integrated improvement project

Our client, one of the deepest gold mines in the world (2.9km), was unable to lift production and improve profitability despite numerous operational interventions over the year. It was running at a massive loss, and consistently struggled to meet mining and production targets, had poor equipment reliability, and labour productivity was well below the industry standard.

OIM Consulting was asked to launch a fully integrated transformation programme which included the following aspects:

01. Shape the culture

  • Shape and instil a new culture in the mine.

02. Build capability

  • Build capability and increase productivity by focusing on improving the competencies of middle and front-line leaders and their teams. This was done through a rigorous training and on-the-floor coaching programme throughout the mine.

03. Manage the work

  • Implement a management operating system.

04. Improve the work & sustain the improvements

  • Equip the organisation’s leadership with the relevant toolsets, skillsets and mindsets to ensure sustainability going forward.

The project was conducted over 12 months and started on the back of a violent strike, resulting from a restructuring and retrenchment process. The bulk of the programme focused on “Building Capacity” which emphasised individual on-the-floor coaching between OIM consultants and front-line leaders. This, in turn, drove team performance and led to operational improvement. The ongoing engagement with front-line leaders and the measurement of operational KPIs ensured the coaching was customised for each individual.

Outcomes

  • 41% increase ingold production
  • 30% increase in gold mined
  • 86% increase in tons per rig
  • 77% increase in backfill (cubics per day)
  • 42% decrease in mean time between failure
  • 26% decrease in absenteeism
  • Mine returned to profit in last ¼ of the project
  • 112% increase in net cash flow
  • Net profit increase from -$344.8m to R174.7m
  • 31% decrease in total all-in cost / kg
  • ROI 1:46 Pure project cost ROI = 39:1
  • These results were achieved with 28% decrease permanent and contracting staff than the year before

“We’ve seen a remarkable improvement in most production metrics during 2019, resulting from a culmination of initiatives centered around our people – including organisational culture, processes, systems and technical improvement; a process supported by OIM.”

~ Martin Preece – Executive Vide-President Gold Fields

The adoption of OIM Consulting’s “Coaching to PerformanceTM” framework by senior leadership & implemented as a way of working in the mine’s operations has enabled sustainability of performance & increased profitability.

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