• Industry: Energy & Natural Resources
  • Type: Business and industry issue, Publication series, White paper
  • Date: 2/7/2014

Operational excellence and profitability: aligning strategy, assets and people 

Operational excellence and profitability
To maintain high productivity in increasingly difficult and dangerous environments, mining companies need people and equipment that can cope with the strain. Technical knowledge and influence should be elevated, to maximize utilization of assets and meet agreed production targets in a sustainable manner.

In their quest to extract ever-larger volumes, many mining companies have put enormous pressure on their capital equipment and geological assets, which have thus experienced excessive wear and tear. This ‘sweating of assets’ means that mining equipment needs constant repair and maintenance to remain productive and avoid accidents.

Ageing workforce and knowledge gap

High-level, engineering skills are required to keep this equipment running, yet the demand for such resources coincides with the departure through retirement of an ageing workforce. Newer, younger recruits do not possess sufficient understanding, experience or judgment to bring assets back into use quickly or to predict future technical problems. This leaves mines with a significant knowledge gap that could impair its ability to achieve planned output quotas.

In addition, many workforces have not received sufficient technical and health and safety training to work in these more difficult conditions, yet they are expected to be proficient. This skills gap can lead to dissatisfaction and, potentially, to industrial action.

“By placing a higher priority on capital equipment and geological assets, mining company Boards can help shift the culture from pure volume to longer-term value.”

Learn more about operational excellence and profitability as a key driver of value (PDF 1.7 MB)


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Hiran Bhadra

Hiran Bhadra

Global Mining Leader – Operational Excellence, KPMG in the US

+1 214 840 2291