Sam Walsh, Rio Tinto’s iron ore chief, attributes this
advantage through smart use of technology and innovation. “It’s about thinking of mining as a factory”,
Mr Walsh says[1].
By taking ideas from the car industry, which happens to be
one of the largest customers, Rio Tinto has been able to adopt the principles
and approaches to innovation and sharing of ideas.
It is a little know secret to many that Mr Walsh stems from
the car industry. Utilising the same
leadership and management techniques that transformed the Japanese
manufacturing sector, Mr Walsh has been able to implement these across several
Rio divisions. The key concepts used are
problem solving methods, eliminating variations and removing waste.
Sam Walsh says “If I look at the various things I have
shamelessly lifted from the car industry, the most obvious is the business
improvement model”[2].
One of the areas that Mr Walsh highlighted was that Mining
is no different to any other business and that data is of high importance. His vision is to create a seamless and
controlled environment comparable to a well-oiled production line, allowing the
handling of billions of tons of dirt annually in a smooth manner. The aim is to utilise automation enabling
repeat processes and clear forecasting.
Just like in a car factory that combines many different parts to build
the car, the mining operations have the same principles apply to them in areas
such as planning, scheduling and product flow.
On the forefront of all this is communication backed up by
knowledge of individuals and data to support the operations. Principles like JIT (Just in Time) are
readily used and form critical foundations for the day to day operations. Mr Walsh discusses change as an important
part, driven by a centralised decision making structure.
With the concept of running the Pilbara with the principles
of a Toyota factory, the results were to look at the processes required, and
the control needed to ensure a smooth supply chain supported by data. Mr Walsh told the Federation of Automotive
Products Manufacturers: “What they now see is a business that is very
sophisticated and in some ways more sophisticated than areas of the automotive
industry”[3].
I would highly recommend that you read the article by Peter
Roberts from the AFR Boss Volume 13 in October 2012. It further proves the case and need for
implementations like our Lean Resources and Lean Construction to ensure long
term sustainability of these industries.
One are Mr Walsh did not directly address, but which is critical to the success of any change and business program is leadership and culture. Through the right leadership we can foster a culture that will create innovation from within. The Chase leadership and culture programs address just this.
Lean in resources is widely used and with the use of government incentive programs, we can deliver programs over a twelve to eighteen month period, with a pay back of less than two months in most cases. All programs are delivered on site, and focus on project implementation, and supporting the organisation with extra resources enabling their resident lean improvement specialists to achieve even better outcomes.
Have a look at one of our case studies with Leighton's HWE Mining or read up on how we are assisting over 700 people at Bluescope Steel in the same way. There are many more case studies, but at the end, we will collaborate with you and create a partnership that will allow for the creation of a program that suits your business, whether it is supporting what you already do, or implementing a whole new program.
For more information, please contact us at Chase Performance
on 1300 880 338 or contact
us through our web site www.chaseperformance.com
[1]
Roberts, P (Oct 2012), Drilling Down, Australian Financial Review: Boss,
Innovation Section (pages 16-24)
[2]
Roberts, P (Oct 2012), Drilling Down, Australian Financial Review: Boss,
Innovation Section (pages 16-24)
[3]
Roberts, P (Oct 2012), Drilling Down, Australian Financial Review: Boss,
Innovation Section (pages 16-24)
