BUSINESS IMPROVEMENT | AUSTRALIA

We delivered immediate bottom line improvements and created disciplined site-wide, continuous business improvement programs that focus on loss and failure elimination for long-term sustainability.

CLIENT

Underground Metals Mine, Australia.

ISSUES

Our client required support to establish a business value improvement methodology and mechanisms to reduce costs. This extended to include:

• Opportunity identification
• Improvement realisation and management
• Benefits capture
• Reporting

OUR APPROACH

To implement a continuous business improvement discipline onsite, our Xenco consultants:

• Engaged at all levels of the organisation to workshop and continuously capture ideas for business improvement
• Identified productivity as a key deficiency and put measures in place to ensure bottlenecks were understood and addressed.
• Implemented a methodology to prioritise initiatives based on risk and value, and tracking and reporting to focus on the most important items
• Established routines for communication updates to maintain focus on implementation and ensure sustained benefits

OUR RESULT

• The initiatives developed by Xenco delivered an overall returned business value of over $10M annually.
• As part of this process, multiple contracts were renegotiated and signed off, resulting in >$0.7M savings.
• A major program was initiated to re-establish and improve the metallurgical performance of the plant; the program’s Net Present Value (NPV) is estimated to be over $40M and led to an internal rate of return (IRR) greater than 100%.
• Major bottlenecks were identified and addressed through operating discipline and the application of overall equipment efficiency (OEE) and Lean principles.
• Increased recovery at 75.3% Metal (previous quarter 71.3% Metal) as the benefits of the metallurgical improvement program are being realised.