VALUE ENGINEERING & VALUE MANAGEMENT

Transcription

1 VALUE ENGINEERING & VALUE MANAGEMENT MINING: REDUCING OPERATIONAL COSTS INTRODUCTION The Value Methdlgy was applied t turn arund a Gld Mine in Suth Africa with the main purpse f reducing peratinal csts withut sacrificing the safety, sustainability and emplyees rights. In an example f gd leadership the first step was t determine why such an interventin was necessary. What wuld be the reasn fr such a change? The answer was explained by the General Manager f the Mine: The current peratinal csts are t high and will cntinuusly increase. It is necessary t create a new way f ding things where we manage the mine tgether with ur emplyees and ptimise peratinal csts, imprve efficiencies and extend the mines life t ensure sustainability fr many years t cme. This will have an implicatin n hw we perate ur business and we are aware that we have t cme up with a new way f thinking. T achieve this we need t invlve management and ur emplyees, ensuring that ur peple d knw where we waste mney and where ur in-efficiency is. PROCESS EXPLAINED The initial change prcess tk place within a facilitated wrkshp envirnment with the Management Team (MANCO - hrizntal representatin f rganisatinal structure), where the Visin and Missin f the cmpany was reviewed and cnfirmed. After that the Purpse Statement f the Turn Arund initiative was created. It must be nted that the whle management team had the pprtunity t be expsed t the principles f Value Management, therefre understanding the prcess and the benefits assciated with it. T establish clear strategies t reduce peratinal csts by 15% by (a given date), withut cmprmising sustainability f the mine. Value Management in a Gldmine - Reduce Operatinal Csts

2 The majr strategies identified were: 01.) Ensure crrect Ore Resurce Management 02.) Optimise Pwer & Water Utilisatin 03.) Eliminate Waste Stres and Salvage 04.) Align Labur Csts (Bnus & Overtime) 05.) Eliminate Shrinkage, Theft and Fraud 06.) Intrduce Value Adding Blasting 07.) Ensure Quality Health Services 08.) Manage Cntractrs & Service Agreements 09.) Reduce Equipment Abuse 10.) Reslve Grading Incnsistency f Panel Crew 11.) Ensure Optimum Grind Cascading Strategies: It was als agreed that each f the strategies established will be cascaded int the rganisatin, respnsibility wuld be allcated t a MANCO member t manage detailed investigatins and wrkshps with representatin frm the relevant stakehlders (vertical representatin f rganisatinal structure). Since the strategy included the empwerment aspect f emplyees all the cnsequential wrkshp activities included the implementatin f Value Management Principles with the bjective f creating an envirnment f cntinuus imprvement initiated by all emplyees. Value Management in a Gldmine - Reduce Operatinal Csts

3 Find belw an example f hw sme f the majr strategies were cascaded dwn int mre detailed activities utilising the same prcess principles applied in the initial VM wrkshp: Frm Reduce Operatinal Csts t Optimise Pwer & Water Utilisatin t Optimise Maximum Demand and Reduce Fresh Water Cnsumptin etc. Value Management in a Gldmine - Reduce Operatinal Csts

4 Anther way t shw the systematic apprach f addressing all the requirements is shwn belw. THE EXAMPLE SHOWS THE ELIMINATE WASTE STORES & SALVAGE STREAM OF INVESTIGATION The stream was divided int MET and Mining & Engineering. The example shws the cascading f MET t Frmalise Planned Maintenance t Ensure Prper Equipment Numbering t the details f Identify Lcatin, Include Safety Instructin and Cntrl Assets. Each area was managed by a senir persn f the mine and pprtunities identified with the relevant participatin f emplyees and external experts. Nte the definitins f the functinal requirements, they are all expressed in verb / nun t clearly state WHAT has t be dne. Value Management in a Gldmine - Reduce Operatinal Csts

5 Each f the prject streams included the basic Value Management principles. T understand the varius principles an example with explanatin f ne f these interventins is shwn belw: (VM Output in italic) OPTIMISE POWER & WATER UTILISATION Establishing a Purpse This refers t the purpse f the study. Clearly scpe the area f investigatin thus ensuring a fcused apprach when selecting apprpriate technlgy fr the prject & determine hw many days the wrkshp / study will take. Selecting the right participants fr the wrkshp. Reduce pwer and water cst at XY Mine Listing Issues and Cncerns List all the Issues & Cncerns applicable t the prject. Include real & perceived Issues & cncerns. 01.) Leaks in cmpressed air pipes 02.) Leaks in water pipes 03.) Excessive use f equipment: Fans (t many) Pumps (t many) Pipes (pressure) Winders (unnecessary trips) 04.) Wrng schedule f pumping hurs (peak perids) 05.) Unnecessary stps f mills and unscheduled start ups (peak perid) 06.) Lack f knwledge n pwer / water business 07.) Open valves (lack f cntrl) 08.) Lights burning at night / day 09.) Air cnditiners / heaters Value Management in a Gldmine - Reduce Operatinal Csts

6 Establishment f a clear Objective Establish an bjective with measurable target and being time bund. Include Results t Achieve. Results t Prevent, Available Resurces & Cnstraints Envirnmental cmplexity f scpe is referenced in terms f current risks and available supprt. Objective: Reduce current average pwer cst by 15% and reduce Water cst by 5% (with imprvements in peratinal cnditins) befre the end f June 200x RESULTS TO ACHIEVE - Measure unit cnsumptin - Optimise maximum demand - Reduce cmpressed air cnsumptin - Ratinalise equipment use - Reduce water cnsumptin - Schedule effective start-up f equipment - Educate user n pwer and water savings - Imprved pwer factr - Reduce chking f pumps / pipes - Reduce smelting cst - Revisit 3 rd party user - Crrect cst allcatin AVAILABLE RESOURCES - Maximum demand cntrllers & equipment (4 #) - Mine water (dlmite) - Skilled peple - Other miner (experience)i.e. Western Deep Levels) - Envirnmentalist - Planned maintenance - Equipment RESULTS TO PREVENT - Prductin lss - Retrenchment - Prevent flding - Clsure f mine - In-adequate supply f pwer and water CONSTRAINTS - Capital - Time - Actual mine plan (resurces) - Gvernment / legislatin - Unins - Lack f educatin - Lack f mtivatin - Ignrance (pwer / water cst) - RC factr Value Management in a Gldmine - Reduce Operatinal Csts

7 The identificatin f the Functinal Requirements t achieve the Objective and pririties List all the Functins that need t be addressed in Verb / Nun statements Evaluate all functinal requirements against each ther t define pririties and the cause and effect scenari. FAST Diagram, Functin / Cst Analysis r Numerical Evaluatin NUMERICAL EVALUATION Functins Scr Rnk A B3 C3 D3 E2 F2 A1 Reduce Rand Water Cnsumptin 1 B B1 B1 B2 F2 B3 Optimise Maximum Demand 10 2 C C2 C2 F2 C2 Reduce Cmpressed Air Cnsumptin 9 3 D D1 F2 D2 Manage Unit Cnsumptin 6 E F2 E2 Ratinalise Equipment Use 4 F F3 Imprve Pwer Factr 13 1 G Ensure Crrect Cst Allcatin 0 CAUSE AND EFFECT GRAPH Cause / Effect Line Address the 0 functins abve the line and 80% f the Objective is achieved 14 F.) Imprve Pwer Factr B.) Optimise Maximum Demand EFFECT CAUSE C.) Reduce Cmpressed Air Cnsumptin D.) Manage Unit Cnsumptin E.) Ratinalise Equipment Use A.) Reduce Water Cnsumptin G.) Ensure Crrect Cst Allcatin Value Management in a Gldmine - Reduce Operatinal Csts

8 Listing and Evaluatin f Recmmendatins Chse the highest rated functinal requirement first and brainstrm fr better slutins, recmmendatins & alternatives. Apply a Star rating t each recmmendatin Alternatively the Perspective Mdeling Matrix can be applied Finalisatin f Actin Plan with Respnsibilities and Time frames. Establish an actin plan fr all high rated recmmendatins fr implementatin, feasibility studies etc.. (wh and when) Functinal Requirement: Imprve Pwer Factr Recmmendatins: Cmments: When: Wh: 01.) Obtain real pwer factr n all incming Sme f the infrmatin 10/07/200X HY supply: will be available frm XYZ Utility Supplier Electrical Cntractr 02.) Obtain Cnsultant reprt fr ptential savings (evaluate reprt) 15/08/200X JP 03.) Finalise prpsal / reprt fr MANCO Apprval 20/08/200X KL 04.) Identify reactive pwer at each shaft / statin & priritise Obtain assistance frm Electrical Engineer and Shaft Bss 15/09/200X JP Nte that the examples are nly snippets f the actual utcme and are there fr shwing in principles hw the prcess was applied. Value Management in a Gldmine - Reduce Operatinal Csts

9 CONCLUSION During a perid f 6 mnths ver 200 peple participated in ver 17 VM wrkshps / studies, establishing strategies and slutins that reflected in a reductin f mre than $1millin (>15%) f initial perating csts per mnth. Nt ne persn was retrenched. The Mine s life was extended by allwing fr cst effective mining in less prfitable sectins. All imprvements were implemented by the Mine s Management and its Emplyees thus ensuring wnership f their actins and pride in their achievements. At least 100 peple btained training in the VM Methdlgy instilling a culture f cntinues imprvements. Special Nte: The General Manager s rle in this venture was crucial and had a majr impact n the success f this turn arund interventin. Nne f the abve wuld have happened withut mature management thinking, able t questin it self n its current psitin and future stance VM Services THE AUTHOR: KJ Huber, Pr Tech Eng. CVS (Life) Managing Directr, VM Services Pty Limited Kurt Huber is currently Chairman f the Standards Generating Grup Value Engineering (part f the Engineering SGB f the Engineering Cuncil f Suth Africa). Kurt graduated frm the University f the Witwatersrand as an Industrial Engineer in 1991 and is a Certified Value Specialist (fr Life) registered with SAVE Internatinal. Swiss brn, Kurt is als an appinted part time member f staff at the University f the Witwatersrand and lectures at varius Business Schls. He has ver 24 years f Value Engineering experience. He facilitated mre than 350 Value Engineering Wrkshps / Studies and lectured in the Value Engineering / Value Management Methdlgy t ver 3000 peple wrldwide Value Management in a Gldmine - Reduce Operatinal Csts