Value Chain Optimisation

Case Study

The Customer

A globally recognized entity in the resources sector, known for its expansive operations that span from extraction to logistics and shipping.

This corporation prides itself on pioneering sustainable practices and leveraging cutting-edge technology to enhance operational efficiency and reduce environmental impact.

Business Function

Continuous Improvement – Iron Ore Value Chain

BSC Function

Execution Services – Operational Planning

Product

Qerent VDT Modelling Software

Project Timeline

Four Months

Solution Scoping and Design
0 weeks
Solution Development
0 weeks
QA & User Acceptance Testing
0 weeks
Deployment and Training
0 weeks

The new process was able to identify and unlock USD 150 M worth of improvements.

The Problem

Inefficiencies stemming from siloed operations and misaligned agendas within the value chain were undermining the corporation’s ability to maximize business value and operational efficiency.
Improvement initiatives were typically run in each business activity or area, where the “size of the prize” was measured in isolation / independently. But in reality, overall operational improvement may only be determined when taking both up and down-stream impacts into account.
As a result, improvement agendas were dictated by the biggest perceived value (or biggest voice) rather than the real operations-wide impact.

The Solution

BSC developed an integrated Value Driver Tree (VDT) model of the entire operation – from pit / panel to port, which included the production value stream as well as economics (cost, revenue and EBIDA).
Using an easy to navigate web-based interface, Continuous Improvement (CI) teams across the entire operation were able to collaborate in analysing and understanding where key bottlenecks and challenges lie, and what drivers underpin performance or profitability.
This allowed CI teams to qualify the real impact of their improvement initiatives and collaborate across the organization more efficiently.

The Value

The solution provided a means for the entire CI team to collaborate, and as a result realigned the thinking and focus applied to the generation of improvement agendas.
Areas identified as key bottlenecks focused on the critical drivers that unlocked value, while areas determined to have sufficient headroom focused on cost rationalization.

Operations will always be complex. Managing it doesn't have to be.

Business Science Corporation

Global Mining Operations | 25+ Years Proven Expertise

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Case Studies