Mining- Case Study

18 Pages2609 Words390 Views

Added on 2019-10-18

Mining- Case Study

Added on 2019-10-18

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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 new appointed CEO of XYZ Limited to reach the following targets:15% improvement in production of saleable product (copper cathode)20+% reduction in operating costs20% reduction in inventory/investmentsTo be able to produce a plan to achieve the ambitious target handed over to the CEO, the current situation must be understood and analysed. The CEO has acknowledged that:The operation produces approximately 100,000t of copper cathode annually The mine site has been operating for about 20 years and most of the fixed plant infrastructure and mobile fleet requires regular preventive maintenanceThe level of unscheduled failure is high at 50+% which impacts the equipment's availability and costs higher to repairEquipment are being sold without the existing spare parts resulting in redundancyTechnical standards for producing equipment is not established resulting to a variety of manufactured 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 generally based on a manufacturing framework and we can acknowledge that mining and processing is different in a way that the raw materials can be highly variable. However; we can say that both has the same goal which is to generate the most profit in the present and the future which is why we can assume 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 of Project Management students who has limited or no experience in project management as well as the mining industry. It is limited to their understanding and will serve as a challenge to apply the knowledge learned in the previous units. In addition to that, information will be solely based on the report provided and the principles of the Theory of Constraints. Time is also limited as two of the project 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 a constant struggle and pressure for companies to maintain their position in the market. The mining industry's cost and equipment reliability are both driven significantly by maintenance putting 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 the prices 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 as decrease inventory/investments by 20%. This project focuses on providing a strategic solution to the CEO of XYZ Limited to reach the targets stated. This project will utilise the principles and thinking tools of the Theory of Constraint 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 and decrease expenses. The main reason of undergoing this project is because of the sudden and sustained decrease in the price of copper. The new appointed CEO is allocated 3 months to either improve the operation performance or the possibility of closure. One of the core cost of operation is maintenance 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 to change to?”, and “how to affect the change?” in sequence, to be able to provide the strategic plan. It will mainly utilise the information stated in the case study in identifying the root cause of maintenance issues, finding a solution, and implementing it by means of the Theory of Constraints’ Thinking tools. Its main objectives are:To understand the relationship between maintenance and the organisation should be vs what is current state To understand what drives the current approach to maintenance practices in mining and why it has persisted

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Mining- Case Study