Radical Innovation Liberating The Potential of TOC in Mining 2019-05-15 Arrie V Niekerk

www.tocpractice.
com
42 TOCPA International Conference

13-16 May 2019, Johannesburg, South Africa
Radical Innovation: Liberating the

Potential of TOC in Mining
Name: Arrie van Niekerk

Company: Tavanec CC
Country: South Africa
Presenter
Arrie van Niekerk obtained his B Eng (Metal) from

the University of Pretoria in 1978, he was trained as
Jonah in 1993 and Jonah-Jonah in 1998. He
was the project leader for the implementation of
TOC in more than 90 mines and 20 manufacturing
companies in South Africa and has 20 years Photo
practical experience in this field.
His key strengths are:

• Recognized expert in the application of TOC
applications
• Developed unique solutions for enhanced
Production Flow in Mining
• Facilitator on TOC and Change management
• Skilled facilitator of Open Dialogue and Team e-mail: arrievn@oiledwheels.co.za
Development as enabling processes Cell: +2782 452 2173
www.tocpractice.com 42 TOCPA International Conference

Radical Innovation?
Radical Innovation:
• New Technology
• Digital technology, New equipment, Robotics
• New Systems
• Artificial Intelligence, Industrial Internet of Things
• Modern Data Architecture, Data Driven Management
What about Radical Innovation of the World of
Management?

Australian Mining Industry
More than 20% drop in Productivity in Mining. WHY?

Mining Industry Productivity

TOC in Mining
(Demonstrative: Normalised to 100)
Production Output ‘000t/month

150
100
50 First Phase Implementation: Successful Implementation:

“Before” Reality: Conceptual Framework Higher Output (+20-40%)
Low Predictability Constraints & Flow High Predictability
Unstable Production Buffer Management Stable Production
High Variation Higher Output (+10-20%) Reliable Operations
Unreliable Reduced Variation Calmness & Good Leadership
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
6
Results over 20 Years
Monthly Production Tons ‘000/month
Before First Phase % Best %

Phase Results* Improvement Results Improvement
Deep Level Gold 34 41 21 53 56

Deep Level Gold 47 61 30 81 72
Medium Level Platinum 130 173 33 212 63
Medium Level Platinum 146 162 11 191 31
Open Cast Iron Ore 650 740 14 1000 46
Open Cast Diamond 242 260 7 296 22
Open Cast Copper 180 200 11 240 33
Average First Phase Improvement: 18%

Average Best Results: 46%
* First phase averages are estimates

Why this difference?
Two Opposite trends in the same period in the

same industry
The fundamentals are different!

COMPLEX Organisations
15
12 16 12 13 13 12
IN 14 15 16 14 10 13 12 13 OUT
11 12 14 15
16

Simplifying Complexity?
10
10 10 10 10 10 10
IN 10 10 10 10 10 10 10 10 OUT
10 10 10 10
10

Combined Effect of
Variation and Interdependence
What will the output

10 10 of the two resources
in combination be?
12
Performance
10
Time
11
Combined Effect of
Variation and Interdependence
10 10 10 10 10 10
12
Performance
10
Time
12
Daily Production Output:
Operations
Production Output: Units/Day
Budget Actual
120
100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Signature Characteristic of a Balanced Capacity Environment

Crusher
Shovel / Dump
Source Loader Truck
& Product
Screen
The operation works one 10 hour shift per day

Each resource has the following capacity:
– Capacity of 100 tons / hour
Each resource has the following availability:
– Average availability of 80%
How much do you expect the operation to produce?
14
Shovel / Dump Crusher
Source Loader Truck & Screen Product
100t/h & 80% 100t/h & 80% 100t/h & 80%
availability availability availability
Resource
Shovel Down Truck Down Crusher Down Availability
2 Hours 2 Hours 2 Hours 80% EACH
100 (8 out of
10 hours)
Performance
Total
1 Hour 1 Hour 1 Hour 1 Hour
= 100t = 100t = 100t = 100t
Output
= 400t
0
0 1 2 3 4 5 6 7 8 9 10
Time
15
Relating the Example to
Narrow Reef Mining
100 100 100
Potential
80 80
80 Statistical 80%
Actual
60
44
40
40
23
20 18.4
10
0
Example Crew Advance (%)Crew Advance (m)
16
Balanced Capacity
10
10 10 10 10 10 10
IN 10 10 10 10 10 10 10 10 OUT
10 10 10 10
10
How much will this system produce?

Bottleneck FLOW Principles
Mineral
resource 15 16 14 10 13 12 Product
The BOTTLENECK determines the Output of the system as a whole

One hour lost on the bottleneck = One hour lost for the total system
In the Presence of a Bottleneck, all the rules change!
18
On the Constraint
10
Running Time?
Implication of Standing Time?
Maintenance?
Operator availability and skill?
Quality control?
Product value?
19
Subordination to Flow
? ? ? 10 ? ?
10
Protective Protective
Capacity
10 Capacity
(Flexibility) (Flexibility)
20
? ? ? 10 ? ?
12
10
Performance
Time
21
Radically Different
Shovel /
Loader
100t/h & 80%
availability
Shovel / 2x Dump Crusher

Source Loader Trucks & Screen Product
100t/h & 80% 100t/h & 80% 100t/h & 80%
availability availability availability

Measurements & Impact
Mine A
Drill &
Shovel Truck Crusher Screen Process
Blast
These shovels will not and should not have Same

the same performance characteristics. The logic for
shovel in Mine A should have 20% lower these
utilization than the shovels in Mine B crushers
Mine B
Load & Bench Drill &
Shovel Truck Crusher
Haul Prep Blast
23
The Radically NEW
15
13
12 16 12 13 12
IN 16 16 15 14 10 13 12 13 OUT
11 12 14 15
16

Two Different Mental Frames
10 15
13
10 10 10 10 12 16 13 12
10 10 12
IN 10 10 10 10 10 10 10 10 OUT IN 16 16 15 14 10 13 12 13 OUT
10 10 10 10 11 14 15
10 12
16
What we do: (Input Measures) What we do: (Input Measures)

– Optimise every component – Optimise Flow
– Plan for cost and efficiency – Buffers & Protective Capacity
– Control everything – Control only Leverage Points
What we get: (Outcomes) What we get: (Outcomes)
– Unstable & Unpredictable output – Stable & reliable output
– Higher Cost, Lower Efficiencies – Lower Cost, Higher Efficiencies
– Closer to bankruptcy – Making much more Money
25
Two totally different worlds !!!
Mineral
resource 10 10 10 10 10 10 Product
A B C D E F
Protective Capacity
26
Optimised Flow in a Mine
A B C D E F
Protective Capacity
F E D C B A
Protective Capacity
27
DBR in a Platinum Mine

Mine Constrained Operation
Drilled Staked
Waste Charge Ore
Blocks & Blast Blocks
Blasted Stake
Waste Prepared
Drill
Blocks 3-5
7-10 Exposed Days Drill
3-5
Days 7-10 Ore
Drill Days
Days Drilled
Prepare 10-14 Ore
Load
Drill Pad ORE Days Blocks
WASTE & Haul
Staked CYCLE
3-5 CYCLE
Waste 10-14
Days Cleaned
Blocks 2-5 Cleaned Days Ore 3-5
Days Waste Days Charge
Blocks 14-21
Blocks & Blast
2-5 Days
Stake
Days
Load
Prepare & Haul
Drill Pad
Blasted
Prepared Ore
Drill 2 000 000t Other Plant
Blocks Finger Stockpiles Feed
Stockpile
29
Why do so many Mining Companies struggle?
“Efficiencies, Costs, Utilisation, Availability …. “If you want to make money, ...
These measurements tell you NOTHING about
MOST of your resources MUST be IDLE from time to
the overall performance of the business”
– Dr Eli Goldratt
time”
– Dr Eli Goldratt
“Do you want to make Optimise every

money, or do you want “In any serial production
to show off efficiencies? component through chain, you can optimise
….” cost and efficiency. ONLY ONE link”
– Dr Eli Goldratt – Dr Eli Goldratt
“The closer you are to a balanced “If a company tells me they experience moving
capacity chain, the closer you are to bottlenecks, my response is:
bankruptcy” You have NO bottlenecks and most of your resources
have at least 30% spare capacity”
– Dr Eli Goldratt
– Dr Eli Goldratt
How do we handle Complex
Corporate Environments?
15 15
12 16 13 12 12 16 13 12
17 17
IN 11 15 16 14 10 13 12 9 OUT IN 11 15 16 14 10 13 12 9 OUT
11 18 11 20 11 18 11 20
19 19
15 15 15
12 16 13 12 12 16 13 12
12 16 13 12
17 17 17
IN 11 15 16 14 10 13 12 9 OUT 11 15 16 14 10 13 12 9 OUT 11 15 16 14 10 13 12 9 OUT
11 11 20 11 18 11 20 11 18 11 20
18
19 19 19
15 15
12 16 13 12 12 16 13 12
17 17
IN 11 15 16 14 10 13 12 9 OUT IN 11 15 16 14 10 13 12 9 OUT
11 11 20 11 18 11 20
18
19 19

Optimise & Systemise
15
12 16 12 13 13 12
IN 14 15 16 14 10 13 12 13 OUT
11 12 14 15
16
10
10 10 10 10 10 10
IN 10 10 10 10 10 10 10 10 OUT
10 10 10 10
10
10
10 10 10 10 10 10
IN 10 10 10 10 10 10 10 10 OUT
10 10 10 10
10

How do you facilitate the switch?
10
10 10 10 10 10 10 A Significant
Switch in the
IN 10 10 10 10 10 10 10 10 OUT way we do
Business!!!
10 10
10 10
10
15
13
12 16 13 12
12
IN 16 16 15 14 10 13 12 13 OUT
11 14 15
12
16

How do people change?
“Do you really believe that people

change their behaviour through the
understanding of linear logic?”
Louwtjie Bouwer

Dr Dean Ornish on
Changing BEHAVIOUR
People who have experienced a real

heart attack were placed before a
crucial life decision: Change your life
style or Die!
− Lose weight, eat healthy, reduce
your stress levels and exercise
regularly, stop smoking
– After 3 years, 1/10 changed their
life style; 90% did not!
BUT, after a positive, provoking

experience of the following:
− Losing weight, eating healthy and
exercising regularly, stopped
smoking
− After 3 years, 77% changed their
life style, only 23% did not
− This is done through a new
experience of the “Joy of Life”

Facilitating Change
An Experience of the Joy of Life is much

more Powerful than the Threat of Death
(Logic & Fear seldom works)
An Experiential Learning Solution has a

75% chance of success

Rapid Results as
Experiential Learning
One Way is to Enable New Thinking and

New Behaviours through application of
the Rapid Results Approach (100 Days
Projects) to the Constraints & Flow Chain
The Results are Astounding!

What Is Rapid Results?
Multi-level & Multi-disciplinary teams, really ambitious Targets,

Enabling them and give them limited time to achieve the results
Carefully designed to inspire frontline teams to set unreasonable
goals, and harness the intense levels of innovation, collaboration,
and execution required to achieve them.
This choreography puts teams at the forefront & helps leaders
learn new ways to support them - ensuring the sustainability of
each project.
Dealing very effectively with operational, social ..

Rapid Results Approach

100- Day challenges
Leaders Teams launch Midpoint Sustainability What’s Next

Design Session workshop Review Workshop workshop
15
13
12 16 13 12
12
IN 16 16 15 14 10 13 12 13 OUT
11 14 15
12
16
- 50 - 20 -2 1 50 100 150
Supporting implementation during the 100-day Helping leaders lock
Mobilisation & Direction setting
journey in the gains
Weekly Bi-weekly
Team meetings Sponsor-team leaders feedback
Results dashboards Sponsor check-in
Leaders check-in

Results Obtained
• Increased the output of an Iron Ore mine

by 23% in 100 Days
• Improved the Mining production of a low
grade Gold mine by 45% in 100 Days
• Achieved stable production and improved
output of an Underground Coal mine
from 14500 t/d to 19000 t/d in 100 Days

New Insight
It’s never enough just to tell people about some

new insight. Rather, you have to get them to
experience it in a way that evokes its power and
possibility.
Instead of pouring knowledge into people’s
heads, you need to help them grind a new set of
eyeglasses so they can see the world in a new
way.
– John Seely Brown, Seeing Differently: Insights on Innovation

Direction for Solution
1. Give people an Experience of a different alternative

in a way that challenges their existing mental frames
2. Allow / Facilitate Deep Reflection on the Cognitive
Dissonance (E.g. Experience of True Enablement)
3. Facilitate Intrinsic Reframing of old Mental Models
towards the new
4. Hardwire New Frames through Rehearsal & Real Life
application until the old frames have been replaced

43
What Next?
What If:
• We can give people an experience of a new reality
of their own environment
• The same configuration with different management
philosophies
• Different Measures, Focus, Decisions, Outcomes
• Create a Safe playing field - No risk of real numbers
• Challenging impact that will enable new behaviours

Radical Innovation
New Mental Frameworks / New Reality

New World of Management
Virtual worlds / “Near True to Life”

Simulations
The real Work, the new Frontier
is Knocking on the Door!

Radical Innovation Liberating The Potential of TOC in Mining 2019-05-15 Arrie V Niekerk

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www.tocpractice.

42 TOCPA International Conference

Radical Innovation: Liberating the

Name: Arrie van Niekerk

Arrie van Niekerk obtained his B Eng (Metal) from

His key strengths are:

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference

More than 20% drop in Productivity in Mining. WHY?

www.tocpractice.com 42 TOCPA International Conference

Production Output ‘000t/month

50 First Phase Implementation: Successful Implementation:

Before First Phase % Best %

Deep Level Gold 34 41 21 53 56

Average First Phase Improvement: 18%

www.tocpractice.com 42 TOCPA International Conference

Two Opposite trends in the same period in the

The fundamentals are different!

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference

What will the output

Signature Characteristic of a Balanced Capacity Environment

www.tocpractice.com 42 TOCPA International Conference

The operation works one 10 hour shift per day

How much will this system produce?

www.tocpractice.com 42 TOCPA International Conference

The BOTTLENECK determines the Output of the system as a whole

Shovel / 2x Dump Crusher

www.tocpractice.com 42 TOCPA International Conference

These shovels will not and should not have Same

www.tocpractice.com 42 TOCPA International Conference

What we do: (Input Measures) What we do: (Input Measures)

www.tocpractice.com 42 TOCPA International Conference

“Do you want to make Optimise every

IN 11 15 16 14 10 13 12 9 OUT 11 15 16 14 10 13 12 9 OUT 11 15 16 14 10 13 12 9 OUT

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference

“Do you really believe that people

www.tocpractice.com 42 TOCPA International Conference

People who have experienced a real

BUT, after a positive, provoking

www.tocpractice.com 42 TOCPA International Conference

An Experience of the Joy of Life is much

(Logic & Fear seldom works)

An Experiential Learning Solution has a

www.tocpractice.com 42 TOCPA International Conference

One Way is to Enable New Thinking and

The Results are Astounding!

www.tocpractice.com 42 TOCPA International Conference

Multi-level & Multi-disciplinary teams, really ambitious Targets,

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference

Leaders Teams launch Midpoint Sustainability What’s Next

www.tocpractice.com 42 TOCPA International Conference

• Increased the output of an Iron Ore mine

www.tocpractice.com 42 TOCPA International Conference

It’s never enough just to tell people about some

www.tocpractice.com 42 TOCPA International Conference

1. Give people an Experience of a different alternative

www.tocpractice.com 42 TOCPA International Conference

www.tocpractice.com 42 TOCPA International Conference