Katlego Mabote_16 TOCPA_April 2015_South Africa_with corrections

16th International Conference of the TOC Practitioners Alliance - TOCPA

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Johannesburg, South Africa

16th International Conference of the

TOC Practitioners Alliance - TOCPAwww.tocpractice.com

The Critical Conflicts of Efficiency

measurements and TOC in Mining

Katlego Mabote, TOC Optimization ManagerSouth Africa Lonmin23th April 2015


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Katlego Mabote Resume

2015/07/17


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Critical Conflicts in Application of TOC in MiningCritical Conflicts in Application of TOC in MiningCritical Conflicts in Application of TOC in MiningCritical Conflicts in Application of TOC in Mining

Conversations to be Outlined Conversations to be Outlined Conversations to be Outlined Conversations to be Outlined

2015/07/17

3 Focus Areas of the Topic 3 Focus Areas of the Topic 3 Focus Areas of the Topic 3 Focus Areas of the Topic

Efficiency Measurements in ApplicationEfficiency Measurements in ApplicationEfficiency Measurements in ApplicationEfficiency Measurements in Application

TOC approach to ChangeTOC approach to ChangeTOC approach to ChangeTOC approach to Change

Mindset required for ChangeMindset required for ChangeMindset required for ChangeMindset required for Change

What are the Critical ConflictsWhat are the Critical ConflictsWhat are the Critical ConflictsWhat are the Critical Conflicts What to Change to What to Change to What to Change to What to Change to

Variability to Remove W Variability to Remove W Variability to Remove W Variability to Remove W Effect AnalysisEffect AnalysisEffect AnalysisEffect Analysis

Investing in TOC as a strategic approach to identify bottlenecks and sustainable leadership to ensure Investing in TOC as a strategic approach to identify bottlenecks and sustainable leadership to ensure Investing in TOC as a strategic approach to identify bottlenecks and sustainable leadership to ensure Investing in TOC as a strategic approach to identify bottlenecks and sustainable leadership to ensure profitable future and excellence, How Lonmin is investing in TOC and the results Lonmin is achieving profitable future and excellence, How Lonmin is investing in TOC and the results Lonmin is achieving profitable future and excellence, How Lonmin is investing in TOC and the results Lonmin is achieving profitable future and excellence, How Lonmin is investing in TOC and the results Lonmin is achieving


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Questions we Answer

4

Shaft Revenue Potential

4 Year Tons performance-Trend Graph

MO s Picture View History

Project Initial Bottleneck Identified Flow Model

Project Initial Bottleneck Identified Management`s View

Project Initial Bottleneck Identified Supervisor`s View

Project Saffy Outstanding Project 2015


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Revenue Potential: 4BShaft

4B Shaft83 Panels

R 21 m per day

Section 1Panels

Section 2Panels

Section 5Panels

Section 4Panels

Section 3Panels

Crew Salary: R250 000 per monthTotal Crew Salaries: R24m per month

Material Costs:


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Total Shaft Where we where? Performance

6


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7

MO Section 41 Johan Kemp

History Tons Trend Action Plan Potential Revenue

Underground Stores

Half Level Bottleneck

Development

1,6

Million/Day

TOP Bottlenecks

Level 7

Level 6Level 6

Level 7

230t 230t

230t230t

Belt Tips

DevelopmentConstraint on 6,7?

Blast on MeshNo Panels

Fault

Belt Tips

MO Section 41

UG2

1. Development

2. Blast on Mesh

3. No Panels

Task By Who By

When

Panels to be Panels to be

Blasted

10


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2015/07/17

Unpacking the Flow Model

Management View

ROWLAND SHAFTTOC Operational Flow Model

2013-03-18

Call:Reef: 190 000t/m, 8000 t/dAIM for: 9500t/dWaste: 1000t/d

26 level

28

29

30

24

2322

21

22

20

1918

17

3x250t

1600t

8000t

Production Crews:69 Panels in Mer & UG2

5 White areas

Reef and Waste ore passes 100t - 200t

3 hours flow

Flow / HLReef : 500-800t/dWaste: 75-100t/d

1,2 km

Chair Lift600 people /h

Gondola40-50 Cars/d

Cross Tramming:3x locos, 63t / span

200t in 40 min, 300t/h

Skip: 25tReef 600t/h

Waste 480t/h

Cage:180 people

14 min cycle to 26 level

(Increase to 230)

Decline belt1200t/h

Buffer Store per H/L:Agreed l ist, Including Winches

Stock for 4-5 daysReplenished by Logistics,

2x per weekEngineering Spares

Well Managed

Optimised Half Level: 5 Production crews (each producing550m2 Mer, 540m2 UG2, Reef 14000t/m-800t/d 5 Reef raise crews, 3 Raises holed. One Flat end & Travelling way crew(producing 35m/m, 1500t/m). Flat end5 raises ahead of raise crews,

16

Shaft Schedule

SUBORDINATION Projects:1. Face Time2. Compressed Air Column3. Labour Unavailable4. Drop Raising (Longer term)5. Relationships (Strategic)6. ATM & Kiosk7. Grout infrastructure8. Material Supply Logistics

Ventilation Zones:

PlantStockPile IDENTIFIED CONSTRAINT

Vertical & Decline Shaft System - Men & Material

GroutPlant

SupportPumping

Drop RaiseConstraint

SlusherProgress

Constraint

EngineeringWorkshop per

Level

EXPLOITATION1. Shaft Schedule2. Additional Chairs on Chair Lift3. Extra Deck on Mary-Anne4. Centralised Blasting5. Man Carriages on 16, 17, 18 Levels

31

Cyclone Plant?

HL Store

Main Stores

GuaranteedAvailabil ity

Shaft Store1-2 Weeks

1,3

km

3,3 km

15E 1,0 km

5 R a is e L in e s S t o p in g 3 R ais e sH o l e d5 R ais e s in

D e ve lo p m e n t D ro p R a ise T ra ve l W a yF la t E n d

R e e f

Wa s t e

Bo x

Pr o du c t io n T o n s R a ise T o ns Wa s t e T o n s

D R Bl as t

D R D r i l l

25

2627


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9

Unpacking the Flow Model

Shift Boss s` View


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2015/07/17

Defining the Current Structure and leadership model Defining the Current Structure and leadership model Defining the Current Structure and leadership model Defining the Current Structure and leadership model

Definition TOC within : Improving Capacity and Scope of making more money and Definition TOC within : Improving Capacity and Scope of making more money and Definition TOC within : Improving Capacity and Scope of making more money and Definition TOC within : Improving Capacity and Scope of making more money and creating an enabling environment creating an enabling environment creating an enabling environment creating an enabling environment

REFRAMING REFRAMING REFRAMING REFRAMING

Local Efficiency & Cost World Local Efficiency & Cost World Local Efficiency & Cost World Local Efficiency & Cost World Frameworks towards a Frameworks towards a Frameworks towards a Frameworks towards a

Production Flow Production Flow Production Flow Production Flow

FrameworkFrameworkFrameworkFramework


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Defining the Concept of The WAR ROOM


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200,000

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Rowland Shaft Total Tons

Tons

6M mov ave

Linear (Tons)

W Effect on the Revenue loss is estimated @ 30% of the 200 000

tons amounting 6 Million /month and cumulative Year by Year

Variation

to Big

Indication of the world of efficiency, World less for More and the

World of WHY Approach

NOW

Then

Six Sigma and Lean Interventions The World of efficiency

Recession time

During recession time the world ask business to find new answer to Production, cost

savings and re engineering and apply the concept of less for More.

Lets Unpack

The TOC Change and the Results


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TOC the Clear Results ROI


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The Results- Comparison

The Results- Comparison1. Low Variability

2. Upward trend

3. Movement from Non performance to performance

4. A profit Game


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The Conflict NO 1A (The We and US)

Local vs Global

Definition TOC within : Improving Capacity and Scope of making more money and Definition TOC within : Improving Capacity and Scope of making more money and Definition TOC within : Improving Capacity and Scope of making more money and Definition TOC within : Improving Capacity and Scope of making more money and creating an enabling environment creating an enabling environment creating an enabling environment creating an enabling environment

REFRAMING REFRAMING REFRAMING REFRAMING

How to rescue business leadership from the recession time and begin to How to rescue business leadership from the recession time and begin to How to rescue business leadership from the recession time and begin to How to rescue business leadership from the recession time and begin to

think like business Man not Victims of recession more so Like business think like business Man not Victims of recession more so Like business think like business Man not Victims of recession more so Like business think like business Man not Victims of recession more so Like business

Victors Victors Victors Victors

Parent to Child Conversation

rather Parent to Parent The World of the We

and Us

The world of Rule and Order

The world SOP

Visible

Invisible to Management

The World of I

think and you

DO


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The Conflict NO 1B (No Young Executive Mind-set

Fixed vs Change World )

Levels of

Work

VS

50

years

Years

35

years


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10 10 10 10 10 10

A B C D E F D E FA B C

16 15 14 13 1210

STOP START / DO

Manage EFFICIENCYManage EFFICIENCYManage EFFICIENCYManage EFFICIENCY Manage FLOW Manage FLOW Manage FLOW Manage FLOW

Control EverythingControl EverythingControl EverythingControl Everything Control Leverage PointsControl Leverage PointsControl Leverage PointsControl Leverage Points

Manage SilosManage SilosManage SilosManage Silos Flow of the System as a Flow of the System as a Flow of the System as a Flow of the System as a WholeWholeWholeWhole

Manage by Budget Manage by Budget Manage by Budget Manage by Budget Manage the Constraint(s)Manage the Constraint(s)Manage the Constraint(s)Manage the Constraint(s)

Individual KPIsIndividual KPIsIndividual KPIsIndividual KPIs Buffer ManagementBuffer ManagementBuffer ManagementBuffer Management

Cost world (Input control)Cost world (Input control)Cost world (Input control)Cost world (Input control) Throughput world (Lost Throughput world (Lost Throughput world (Lost Throughput world (Lost revenue)revenue)revenue)revenue)

Management by NumbersManagement by NumbersManagement by NumbersManagement by Numbers Management by Means Management by Means Management by Means Management by Means (What)(What)(What)(What)

People just work for a People just work for a People just work for a People just work for a salary and must be salary and must be salary and must be salary and must be controlled controlled controlled controlled (Efficiency driven)(Efficiency driven)(Efficiency driven)(Efficiency driven)

People are intelligent People are intelligent People are intelligent People are intelligent

and want to performand want to performand want to performand want to perform

(Leadership, Care & Growth)(Leadership, Care & Growth)(Leadership, Care & Growth)(Leadership, Care & Growth)

Low morale and spiritLow morale and spiritLow morale and spiritLow morale and spirit Positive and enthusiasticPositive and enthusiasticPositive and enthusiasticPositive and enthusiasticculture culture culture culture

The Conflict NO 2 (The World of what to thinkThe Conflict NO 2 (The World of what to thinkThe Conflict NO 2 (The World of what to thinkThe Conflict NO 2 (The World of what to think

Not How to think) The World of Produce to Stock not by OrderNot How to think) The World of Produce to Stock not by OrderNot How to think) The World of Produce to Stock not by OrderNot How to think) The World of Produce to Stock not by Order


www.tocpractice.comThe Conflict NO 3 ( The Lack of the Executive View) and Business Unusual

East 3 4B

Hossy Saffy

The 10 10 Chain Balanced Capacity Production Design


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2015/07/17

The Conflict N0 5( The Lack of Buffer

management System)

Production HL's

Chair LiftGondola

Cross Tramming

Skip

Cage

Decline belt

Shaft Schedule

GroutPlant

SupportPumping

5 R a is e L in e s S t op in g3

Ra i s e sHo led

5 R a is e s i nDe v e l o pm e n t

D r op R a is e T r a v e l W a y F la t E nd

Re e f

W as t e

B o x

P r o d u c t io n T o n s Ra is e T o n sW as te T on s

D R B l as t

DR D r il l

PlantStockPile

Main Stores

Shaft Store

10 10 10 1010 10

TOC principles non existences

1. No Buffer management system

2. No concept of the War Room

3. Primary and Secondary Chain

not designed for TOC


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NON PERFORMING ZONE

Shafts Achieving 60 % of the Budgets

The Conflict NO 6 ( The Finance reporting vs Revenue Calculation) The Language Sap system

(Innovation is squeezed out)

20

PERFORMING ZONE

Shafts Achieving 40% of the Budgets

How the project trial was commissioned


www.tocpractice.comThe Conflict NO 7 (The W Effect Impact

Principle Efficiency vs Through -Put)

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Buffer Management SystemBuffer Management SystemBuffer Management SystemBuffer Management System

Performance against TOC (5 to 10) % above Plan Performance against TOC (5 to 10) % above Plan Performance against TOC (5 to 10) % above Plan Performance against TOC (5 to 10) % above Plan

Buffer Management SystemBuffer Management SystemBuffer Management SystemBuffer Management System

1.1.1.1. Engineering Buffer Engineering Buffer Engineering Buffer Engineering Buffer

2.2.2.2. Material BufferMaterial BufferMaterial BufferMaterial Buffer

3.3.3.3. People Buffer People Buffer People Buffer People Buffer

W Effect Analysis October

No Buffer

2 Weeks Buffer

Buffer

September W effect


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The Conflict NO 8 (The leadership dilemma)

TRAINING FALLS VICTIM TO SHORT-TERM PRESSURES


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Defining What needs to be Changed

Defining What needs to be Changed

1. Leadership Structure TOC enabling environment

2. TOC Flow principles to be entrenched

3. Promotion of Economic Business Competency


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2015/07/17

The ANSWER to the Solutions-Measurements

1. Overall flow of tons

2. Rate of the identified bottleneck

3. Status of the primary buffers feeding the bottleneck and its effects on flow stability

4. Status of the protective capacity

5. Visibility of the systems reality & Changes

6. Spirit / Vibe / Dynamics of the shaft

7. Level of understanding of the TOC concepts


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25

The TOC is a Sustainable approach Moving Forward

The Conclusion

Katlego Mabote_16 TOCPA_April 2015_South Africa_with corrections

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