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Total Operational Excellence 21/04/23
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Case Study:Improvement Projects
Leila Sarcia- BI Specialist Rio Tinto Group- Energy Resources Aust.
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Learnings from the Case Study
• Gaining active involvement of C-level – sponsorship and ownership
• How to influence executive decisions and sponsorship with winning business case for continuous funding
• Selling and marketing your improvement projects/ programmes with maximum visibility of outcomes and financial gains
• Establishing and driving executive ownership – knowing how to keep management on board for sustainable change
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• In 2009 up to present, Improvement projects initiative was rolled out, the metric is for each department to generate cost reduction projects that will impact the annual operating budget expense.
• It is a “cost” reduction initiative intended to reduce the plan operating expense.
• The cost savings will be achieved and recognized as a result of team’s efforts.
Case Study: Improvement Projects
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Project Charter
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• Project charter contains the business case showing the benefits of the project.
• To be approved by the sponsor.
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• Consolidated tracking and verification through project review.
• Periodic reporting on a monthly basis by each Manager to provide information on the progress.
• Each senior leaders are accountable to achieve the target. Each Manager to measure and report the achievement by the end of the year.
Case Study: Improvement Projects
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Improvement Projects
Process Flow
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• Review of each project charter to make sure that the target savings can be verified.
• To assess the quality of project to assure that the results can be measured and are aligned with the intent to reduce plan costs.
• All initial reviews will be completed by the end of Quarter1.
1. Initial Review
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2. Periodic Reporting
• A periodic reporting on a monthly basis by each Manager to provide information on the progress.
• A project tracker will be maintain at a department level and consolidated at the business level.
• Tracker will be updated by each department every end of the month.
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Tracking ToolsProject
No.Project Title Accountability
Planned Savings $000
Forecast Savings
$000
Actual Savings $000
LOC-001 Neutralisation Lime Usage Reduction 1000 4400 2670LOC-002 R&D Projects Tax Return to the Business 1530 1530 1530LOC-003 Leach Tank Repairs 350 350 0LOC-004 High Cr Grinding Media Trial on BM1 300 150 40LOC-005 Pond water usage reduction - using Brine 500 150 148LOC-006 Rod Mill Liner Wear Monitoring and Reline Strategy 130 130 110LOC-007 Calciner Fuel Reductions 100 30 10LOC-008 L.E.D lighting changes 30 30 8LOC-009 Leach Chemistry Optimisation TBD TBD TBDLOC-010 Fine pH control in Leach Tanks TBD TBD TBDLOC-011 Primary Screen Bottom Deck TBD TBD TBDLOC-012 Alternative to Water Truck Hire 47 70 70LOC-013 Mineralogy Assay Reprogramming 60 30 28LOC-014 Rationalisation of Plant Ops Roles 200 200 200LOC-015 Solar Array 3 3 2LOC-016 Cooling Tower Treatment 15 25 0
Planned Forecast ActualTOTAL $4,265 $7,098 $4,816
(millions) $4.27 $7.10 $4.82
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Planned Forecast Actual
TOTAL (millions)
$5.23 $8.28 $5.25
2012 Cost Savings Metric• Updated and reported monthly
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3. Closeout Review
• A final review will take place to determine whether your targeted savings were realized based upon the agreed measurement established in the initial meeting.
• All reviews will be scheduled by the end of November of every year.
• All closure reviews will be completed by the end of January of the following year.
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Cost Savings (2009-2012)
$5M
$3.5M
$13M
$8.3M
0
2
4
6
8
10
12
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2009 Actual 2010 Actual 2011 Actual 2012 Forecast
(mil
lio
ns
)
2009 2010 2011 2012
$5M $3.5M $13M
$8.3M
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Thank You!
The success of Improvement projects?................................................. Striving for Operational excellence.
