TOC Mining A Theory of Constraints Application

GOLDRATT Group SA

Theory Of Constraints(Eli Goldratt)

The Productivity Choice

Presenter:Henning du PreezManaging Director

Goldratt Group Southern Africa

Run of Mine Tons per day (Opencast)

TOC Mining A Theory of Constraints Application

GOLDRATT Group SA

-

5 000

10 000

15 000

20 000

25 000

30 000

40%

60%

Proven Process Capacity

Reef Tons Hoisted per day (Underground)

TOC Mining A Theory of Constraints Application

GOLDRATT Group SA

40%

60%

Proven Pocess Capacity

GOLDRATT Group SA

THE BARRIER to Productivity

40%

60%

Proven Process Capacity

Productivity of the process < 70%(Across mining types, across continents, across companies)

Are we all facing the same type of productivity barrier ?

Barrier

TOC Mining A Theory of Constraints Application

GOLDRATT Group SA

Theory of Constraints

Dr Eli Goldratt was an Israeli physicist who became a business management guru. He was the originator of Theory of Constraints.

One bottleneck per process(A chain is only as strong as its weakest link)

TOC Mining A Theory of Constraints Application

Root Cause behind the 60% BARRIER=

The bottlenecks are managing us versus we are managing the bottleneck

GOLDRATT Group SA

Theory of Constraints

Dr Eli Goldratt was an Israeli physicist who became a business management guru. He was the originator of Theory of Constraints.

How do you know if the bottlenecks are managing us?

TOC Mining A Theory of Constraints Application

Symptoms of the root cause-> Bottlenecks developing (daily & weekly) there where we can least afford to have them.-> Constant changing priorities and fire fighting (management don’t have time)-> De-motivated people (people are blamed for all the problems)->Ave daily production <70% of proven Capacity ->Falling short of required targets

TOC Mining A Theory of Constraints Application

GOLDRATT Group SA

Manage your BOTTLENECK increases the process PRODUCTIVITY dramatically

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5 000

10 000

15 000

20 000

25 000

30 000 Series1Moving average (Series1)

Bottleneck managing us

We manage the Bottlenecks

Implemented theTheory of ConstraintWay of managing a Bottleneck

GOLDRATT Group SA

Underground Mine (on one level)

31-Jul

2-Aug

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1-Sep

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0

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TOC Mining A Theory of Constraints Application

67% 80%

Implemented theTheory of ConstraintWay of managing a Bottleneck

TOC Mining A Theory of Constraints Application

GOLDRATT Group SA

Decide where the bottleneck should be Underground => The Cleaning Cycle must be stronger than the Blasting Cycle [Today it is

frequently the opposite]

Opencast => The mining side must be stronger than the plant side

Planning, Budgeting and Measuring

=> Plan to meet 80% of your bottleneck performance consistently => Budget for the required buffers for reliability and consistency of performance => Continuously measure your constraint rate and the status of your buffers

(single measure single priority)

The Future of Mine Planning and Design

GOLDRATT Group SA

The Productivity Choice

TOC Mining A Theory of Constraints Application

31-Jul

3-Aug

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0

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Let’s move from a marginal mine (65%) to a mine with a margin (80%) – From bottlenecks managing us to us managing our bottlenecks.

The Choice is yours!