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MINING CASE STUDY
1TABLE OF CONTENTS1.Executive Summary2.Business Case2.1.Project Objectives2.2.Desired Outcomes2.3.Benefits2.4.Copyright Issues2.5.Scope2.5.1.In Scope of the Project2.5.2.Limitations of the Project3.Project Plan3.1.Deliverables3.2.Risks3.3.Risk Management Strategy3.4.Project Management Team Structure3.5.Role Descriptions3.6.Quality Management Strategy3.7.Work Breakdown Structure3.8.Project Duration4.Benefits Review Plan4.1.Scope4.2.Accountability4.3.Benefits Measurements4.4.Resources4.5.Baseline Measures4.6.Performance Review5.Appendix A – IO Map6.Appendix B – CRT7.Appendix C – EC8.Appendix D – Gantt Chart9.References
21.Executive SummaryThis proposal serves as a requirement for a project to provide a strategic plan to the newappointed CEO of XYZ Limited to reach the following targets:15% improvement in production of saleable product (copper cathode)20+% reduction in operating costs20% reduction in inventory/investmentsTo be able to produce a plan to achieve the ambitious target handed over to the CEO, thecurrent situation must be understood and analysed. The CEO has acknowledged that:The operation produces approximately 100,000t of copper cathode annuallyThe mine site has been operating for about 20 years and most of the fixed plantinfrastructure and mobile fleet requires regular preventive maintenanceThe level of unscheduled failure is high at 50+% which impacts the equipment'savailability and costs higher to repairEquipment are being sold without the existing spare parts resulting in redundancyTechnical standards for producing equipment is not established resulting to a variety ofmanufactured modelsThis project will use the principles of Theory and Constraints to identify the root cause underlying theknown symptoms in the mining site to satisfy the objectives. The Theory of Constraints is generallybased on a manufacturing framework and we can acknowledge that mining and processing isdifferent in a way that the raw materials can be highly variable. However; we can say that both hasthe same goal which is to generate the most profit in the present and the future which is why we canassume that the principles and methods of Theory of Constrains is applicable to the mining industry.This project is a requirement of the Capstone Integration unit and will be managed by Master ofProject Management students who has limited or no experience in project management as well asthe mining industry. It is limited to their understanding and will serve as a challenge to apply theknowledge learned in the previous units. In addition to that, information will be solely based on thereport provided and the principles of the Theory of Constraints. Time is also limited as two of theproject team is taking three units and one is taking four units which has unit requirements as well.
32.Business CaseMining companies all over the world has generated new competitive forces due to globalisation.Reducing costs and increasing production whilst maintaining the quality of products has been aconstant struggle and pressure for companies to maintain their position in the market. Themining industry's cost and equipment reliability are both driven significantly by maintenanceputting it as an important function which requires high level of management attention. If done so,it has the potential of becoming a factor of competitive advantage.The project is based on a heap leach copper mine of XYZ Limited in the year 2012 when theprices of copper and grade deteriorated. A new CEO is selected with the objective to reach 15%of improvement in production of saleable product, to reduce operating costs to 20+% as well asdecrease inventory/investments by 20%.This project focuses on providing a strategic solution to the CEO of XYZ Limited to reach thetargets stated. This project will utilise the principles and thinking tools of the Theory ofConstraint in order to identify what to change, how to change, and how to affect change in whichwhen identified, will provide the company an strategic plan to improve their production anddecrease expenses.The main reason of undergoing this project is because of the sudden and sustained decreasein the price of copper. The new appointed CEO is allocated 3 months to either improve theoperation performance or the possibility of closure. One of the core cost of operation ismaintenance and if managed well, can be a source of competitive advantage.2.1.Project ObjectivesThis project aims to provide a strategic approach in answering “what to change?”, “to what tochange to?”, and “how to affect the change?” in sequence, to be able to provide the strategicplan. It will mainly utilise the information stated in the case study in identifying the root cause ofmaintenance issues, finding a solution, and implementing it by means of the Theory ofConstraints’ Thinking tools. Its main objectives are:To understand the relationship between maintenance and the organisation should be vswhat is current stateTo understand what drives the current approach to maintenance practices in mining andwhy it has persisted
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