The Disciplined Approach: How mining companies build profits through strong business processes Fully integrated, process-driven ERP enables global mining companies to simplify and strengthen business processes to maximize mine profitability.
Introduction To weather the volatility of the industry, mining companies today must improve profitability through best-in-class performance and disciplined cost control. Volatile commodity prices, global operations and regulatory compliance all drive the need to closely monitor and manage key business processes. Mining companies can optimize operations through smart use of technology. A cost-effective, extensible and user-friendly Enterprise Resource Planning (ERP) solution enables companies to connect operations across the globe and enforce consistent business processes. In this document we will explore how forwardlooking companies can take a disciplined approach to improve profits. Contents 1. Support fast, confident decision making based on timely, relevant and reliable data. 2. Monitor Key Performance Indicators for continuous process improvement. 3. Plan and control maintenance of capital assets to minimize downtime and unexpected costs. 4. Reduce workarounds and build operational efficiency with processdriven ERP. 5. Manage valuable human resources with strong payroll and HRMS. 6. Apply best practices for a disciplined approach. 7. Next steps. Page 2
Support fast, confident decision making based on timely, relevant and reliable data Today, mining companies have access to more operational data than could possibly be conceived of just a decade ago. Gathering that data and delivering it in a form that adds insight, rather than overwhelms, is the current challenge. Mining companies that still depend on spreadsheets and stand-alone software continue to deal with an age-old dilemma make decisions quickly based on limited information or delay decisions until cross-department data has been collected and manually combined. Both scenarios carry risk and put the organization at a competitive disadvantage to those mining companies with better decision process support. To build the decision support that gives managers confidence, data must be reliable and easily accessible in an understandable format. With real-time, integrated data managed through an integrated ERP solution, managers can view summarized information and can drill down to validate underlying details. From growing enterprises to global leaders, mining companies that leverage the latest technologies to consolidate data can improve decision making to: Monitor project profitability through multi-level phases with real-time cost to budget projections. Maximize productivity through optimized resource utilization. Respond to changing exchange rates and commodity prices proactively. Improved visibility into the data that the organization is collecting is the first step in optimizing productivity and building profits. Page 3
Monitor Key Performance Indicators for continuous process improvement Key Performance Indicators (KPIs) give managers continuous insight into high level operational activity so that they can identify problem areas and respond quickly. Measuring and reporting results against established benchmarks provides the empirical feedback on progress that supports better management decisions. Industry-leading performance is the best way to differentiate your mining operations from the competition. To achieve best-in-class results you need to establish benchmarks and continuously measure progress. KPIs, delivered to managers and decision makers wherever they are, increase your operational agility. Continuous process improvement requires consolidated reporting on the impact of specific activities across the organization. To be most effective, KPIs should: Report performance relative to goals. Be visible across the enterprise in a unified web-enabled visualization. Provide proactive flagging or alerts to bring attention to issues like potential cost overruns and compliance risks. Be regularly evaluated to enable management to keep pace with changes in the business environment. The combination of busy schedules and hard to interpret data is a recipe for disaster. Your managers need information that is easy to consume and relevant to the decisions they make. Page 4
Plan and control maintenance of capital assets to minimize downtime and unexpected costs Continuous monitoring and management of the deployment, operation and maintenance of assets ensures optimum lifetime performance. The ultimate goal is to achieve the right balance between the capital costs of asset replacement and increased operational costs of inefficient or outdated assets. Asset-intensive mining operations save time and money by optimizing maintenance resources to improve equipment up-time and length of service. Capital assets represent major investments for mining companies. Optimal asset performance is achieved when asset usage and condition information, maintenance schedules, and asset tracking data is gathered and reported. Key asset management decisions are made easier by a combination of automated data interpretation and advanced analysis tools. The system should support: Tracking and scheduling preventative maintenance plus the ability to manage ad hoc break/fix maintenance. Alerts to bring attention to assets working outside of their service contract parameters. Accurate estimates of cost of asset operation, individually and in conglomerate, to ensure project profitability. Asset management is more than gathering data. Transforming that data into usable information will drive competitive advantage through optimized equipment usage. Page 5
Reduce workarounds and build operational efficiency with process-driven ERP For mining operations, managing people across multiple cultures and languages, while enforcing consistent business processes can be challenging. To avoid workarounds and unintended use of systems, mining operations need user friendly ERP combined with continuous training and monitoring. The best practices established by a company-wide ERP implementation can quickly erode if users feel that the system is too complex to use. If spreadsheets are easier, people will use them separating valuable data from the corporate knowledgebase and undermining intended productivity improvements. An effective ERP implementation simplifies and automates processes in line with the actual operations of the organization. Drive consistent business processes across the organization with: System requirements that are gathered with input across production facilities, geographies and cultures. Automation of labour intensive manual processes such as financial reporting, budgeting and operational analysis. Continuous training, both on-site and online, to promote best practice system usage. Data centralization and productivity improvements are the drivers of an ERP implementation. Usability is the key to ensuring those outcomes are realized across the organization. Page 6
Manage valuable human resources with strong payroll and HRMS Centralized Human Resource Management Systems (HRMS) allow mining companies to take a consistent approach to employee management. In the mining industry, consistency and training are critical to increase workforce retention, decrease employee turnover costs and maximize productivity. The competition for experienced mining engineers and equipment operators will continue to increase as older workers retire from the industry. Recruiting and retention of good employees provides the foundation for profitable operations. Consistent treatment of employees will foster a positive and collaborative work environment. An HRMS will support a disciplined approach to training through course management and certification tracking. In turn, a well-trained workforce will enable increased productivity. With centralized employee information, your managers will make better choices to: Manage pay rates and benefits to align with local standards, company policies and fair practices. Monitor training and certifications to keep workers safe and build career advancement opportunities. Ensure compliance with local regulations and reporting requirements. Closely monitor personnel actions, HR compliance and benefits administration. Employees are the lifeblood of a successful mining company. Today s wellconnected employees expect proactive, consistent HR policies to be applied company-wide. Page 7
Apply best practices for a disciplined approach To achieve operational excellence, business processes need to be aligned with strategic goals and continuously monitored. The implementation of a new ERP system provides the unique opportunity to evaluate processes and design the system to set the course for best-in-class operations. Data is the fundamental building block of operational efficiency. By harnessing the organization s data across departments and geographies with the latest technology, the decision makers in your organization can optimize operations. A technology partner with experience in mining operations will help you maximize the value of the ERP implementation and data consolidation through the following services: Thorough, collaborative analysis of business requirements, current processes and desired improvements. System design aligned with organizational goals. Best practice recommendations based on industry expertise. Global perspective to promote a unified implementation across geographic boundaries. All components of your mining operations should be aligned with company strategic goals. Choose a technology partner with industry expertise to achieve a disciplined approach. Page 8
Next steps As experts in the mining industry, Caron Business Solutions can help you develop a disciplined approach to your mining operation. We have worked with mining companies to optimize operations through ERP solutions that promote consistent business processes and connect employees across the globe. Caron is a leading provider of ERP solutions for small to mid-sized enterprises. With an in-depth knowledge of Sage ERP and industry-specific solutions, our professionals have provided implementation, training and customization services for over 15 years. Our implementation teams include certified accountants, consultants, former CFOs, CIOs and corporate controllers who are passionate about customer service and who thrive in a dynamic and challenging environment. With the most experienced Sage ERP development team in North America, we are prepared to handle the most demanding client requirements. Call us for a one-on-one meeting to discuss how to improve your mining operations. Contact us at 604-291-6311 or email mining@caronbusiness.com Page 9
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