Summary—115
The new management team of a gold producer wanted to accelerate operating performance because the company was not achieving operating goals. Lack of accountability and poor visibility of opportunities for improvement contributed to the problem. The producer needed to formalize measurement systems to capture the value and address operational issues to attract new investors so that they could pursue a strategy for growth.
We helped the management team sharpen its improvement efforts by analyzing current metrics and designing key performance indicators. With these tools, management was able to focus on priorities that improved company performance.
Challenges
- Lack of communication, synchronization, and planning between management groupsLack of communication, synchronization, and planning between management groups
- No system for measuring improvement
- Unable to reconcile ounces in the ground with ounces in doré
- More than 100 KPIs were being used, which prevented business priorities from being determined
Results
- 90% reduction in metrics from more than 100 KPIs to a total of 17 90% reduction in metrics from more than 100 KPIs to a total of 17
- 30% improvement in cash cost per ounce quantified
- 23 constraints identified across planning, operations, processes, maintenance, materials, and finance
- 100% improved visibility of key drivers in the value chain from the geological model to doré