Reports on productivity in mining abound at present. This column reported on PwC's publication last week. EY have also published a report proposing the need for broad transformation in the industry to return to positive productivity. EY suggests productivity gains could be the most useful measure ie the highest ratio of output to input, which could imply higher outputs to lower inputs. Alternatively called process optimisation, CEEC's own Resource Centre provides numerous Best in Class papers to support a transition to optimisation.
Other suggestions from the EY report include
- greater collaboration between equipment manufacturers and miners to achieve long term innovation success
- the need for increased productivity in the labour sector
- slow pace of innovation in mining technology
- a refocus on the best use of existing capital equipment to increase productivity
- implementing continuous improvement programs
The EY report challenges the industry to consider
- Are you improving or transforming?
- Are your initiatives adding to the long term bottom line or just moving the problem? What's the impact on cash flow and profit?
- Are you thinking about the problem conventionally or with a value chain view?
Download the full report here.