Getting the Most out of New Technology Thursday 16 th July 2020 - - PowerPoint PPT Presentation

Getting the Most out of New Technology

Thursday 16th July 2020

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Getting the most out

• f new technology for

Manufacturing

AUSTMINE WEBINAR – 16 JULY 2020 Presented by: Hendrik Lourens hendrik@stratflow.com.au

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HENDRIK LOURENS

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Introduction

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Extreme failure rate for new technology

• 25% technology projects fail
• 20-25% don’t show ROI
• 50% need massive rework

Reason given: Poor management and cultural obstacles

SOURCE: Bernard Marr Forbes Magazine 2013

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Overview

• 1. Obstacles to new technology
• 2. ERP systems example
• 3. Business environment
• 4. Solutions

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Part 1: Obstacles to new technology

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Obstacles

• Overloaded Management
• Culture
• Change programs
• Operations instability& limited agility of resources

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Typical digitisation issues (1)

• Siloed data that cause communication issues.
• Not knowing which information is crucial for the overall system.
• Not knowing how to deliver information to the right departments and decision makers and not

knowing what info we already have.

• Not able to identify the crucial information each department requires and how changes in other

parts of the system affect this.

• Not knowing in advance how decisions could affect other stakeholders and therefore not knowing

where to start and how to adapt.

• Not having the right skills and/or not knowing what the right skills are

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Typical digitisation issues (2)

• Managers that are overloaded
• Lack of ownership and resistance
• Culture, measurement and reward systems

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Typical automation issues

• Not understanding or improving process
• Wrong stakeholders involved
• Undiagnosed bottlenecks or quality issues
• Unclear goals for implementation
• Retraining, buy in
• Automating areas that do not deliver to the

bottom line

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Part 2: ERP system

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Four questions when implementing technology

• 1. What is the power of the new technology?
• 2. What limitation does it diminish?
• 3. What rules helped us accommodate the limitation?
• 4. What rules should we use now?

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Productivity is well below its best

Since 2014, mining productivity has reversed course with a gradual increase

SOURCE: Company reports and websites; MineLens by McKinsey; McKinsey analysis

MineLens Productivity Index (MPI), 2004 = 100

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Utility of paradigm

Utility of paradigm A crisis period when

• ld methods struggle

to solve today’s problem, leading to the emergence of new solutions. Industrial age Information age Ecology age Today Time

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Balanced capacity chain

10 10 10 10 10 10

Raw material supply Product

Each Resource can perform at an average rate of 10 parts per hour

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Scientific fact 1: Variation

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Input Output 10 12 Performance Time Max Ave Min Industrial Processes: NEVER a NORMAL distribution

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Scientific fact 2: Interdependence

A B C D E F

Mineral resources Product

BLOCKAGE STARVATION

X

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Variation and interdependence

10 10 What will the output of the two resources in combination be? Time Performance 12 10

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Variation and interdependence

10 10 10 10 10 10 Time 12 10 5 Performance

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Multiplication of KPI’s

• Hold employees accountable
• Multiplication of interfaces and metrics, many
• pposing
• Should I maximise my measures, even at expense
• f others?
• Reduced trust and cooperation
• Productivity and engagement drops

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Information age: ERP system

• Tremendous amount of data available
• Often implemented in top down fashion

by finance

• Can become the straitjacket preventing

improvement

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Part 3: Business environment

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Businesses need to make money now and into the future

SOURCE: Rich Karlgaard: The soft edge

Engagement The soft edge

Managerial Attention Constraint

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Employee engagement

Australia/NZ

• 2013 – Highly engaged 24%
• 2017 – Highly engaged 14%

Gallup State of the Global Workplace

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Management focus for future manufacturing success

• Put the customer at the centre of the

business

• Pursue lean operations and waste reduction
• Embrace innovation
• Digitise and automate
• Empower employees

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Part 4: A holistic solution

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What does a good solution look like?

• Managers do excellent work with technology implementation
• Culture changes happens quickly and easily
• Creates effective change platform
• Improves stability and creates agility
• Simplifies processes and provides focus
• Guide management towards future success/balance triangle

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A dual operating system

• The Productivity Platform (PP) implemented in more

than 40 manufacturers and more than 90 mines since 2000

• Delivered +20% increase in output and significant

financial gains within 6 month using same resources

• Change Platform to shift thinking and doing

SOURCE: John P Kotter, Accelerate

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PP: The Flow Room

• A place where the critical data is immediately

visible

• Where heads of departments and their direct

reports are present every day, horizontal coordination

• Where decisions are made looking forward and

holistically

• Where we practise dialogue and strengthen the

new paradigm

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PP: Focus and buffers increase flow

10 ? ? ? ? ?

Protective capacity (flexibility) Protective capacity (flexibility)

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Time Performance

12 10

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The story of a technology implementation

• Business unit about to close down
• Digitisation as part of new strategy
• Freeing up management time and cultural

change

• Buy in
• Turnaround in six months

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References

• Social licence and digitisation requires new thinking, H. Lourens G. Wong , AusImm, April 2020
• Mining Differently, H. Lourens G. Wong, Austmine, May 2019
• Turning mining performance around requires new thinking, H. Lourens Australian Mining, 2017
• Manufacturing differently, H. Lourens, AMT Magazine, Feb/Mar 2020
• Drawing a new map: Strategic Learning and Strategic Alignment, Amazon Kindle, 2013
• Accellerate, J.Kotter, Harvard Business Review Press, April 2014

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THANK YOU!

www.austmine.com.au

Questions

www.austmine.com.au

Upcoming Webinars

NSW METS – In Focus Wednesday 22 July 2020 The Future of Autonomous Operations in Mining Thursday 23 July 2020 METS Tech Talk Webinar Series 2 Starting Wednesday 29 July 2020