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Medium Profitability Operations Optimization Production Management

TBell Mining

#Mining #Materials & Extraction
ProHub Comment

This case tests the candidate's ability to identify operational inefficiencies through data analysis, specifically a mismatch between actual production composition and technical specifications. The key insight involves recognizing that fine particles are being excluded from the finished product during screening when the technical datasheet allows up to 25% fines, revealing a process optimization opportunity that increases both output and profitability while reducing waste inventory.

Estimated Time 15 minutes
Difficulty Medium
Source IESE
50 / 100
Everything that is not cultivated or fished has its origin in a mine. Your client is a mining company that extracts rocks from an open pit in the mountains. The company is experiencing difficulties in optimizing its production process. On the one hand, their facilities are at top capacity working 3 shifts per day working at almost 100% capacity utilization. On the other hand, the finer products are piling up (more than 500 000 t) since the mine necessarily produces fine particles in the milling process. The client wants your consulting team to help them identify and evaluate the best solutions to optimize their production process and increase their output while driving profits up.

Clarifying Information

  1. The mining company has been operating for several years and has a well-established production process
  2. The production process consists of several stages, including drilling, blasting, crushing and screening. Once the mountain is blasted, they mineral is crushed into smaller pieces and then classified into the different products
  3. A product is considered a range of grain sizes. For example, 8-17 mm (rocks from 8 to 17 mm), 50-150 mm, etc. Every product must comply with a technical datasheet (TDS) that stablish thresholds for the different grain sizes. If not met, TBell faces a penalty from the client.