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“The value derived from the PIP intervention is on record. However, more important to me is that the fundamentals of sustainabilty have been addressed - and I would like to thank the PIP team for a most satisfying and rewarding experience. Their value add is evident both in our business and in our personal growth..”

Gerald Boting,
General Manager,
Skorpion Zinc,
Anglo Base metals

Business improvement process in mine

gold mine
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At the end of the four-week project, there was a number of outcomes achieved, see below for details

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Capital optimisation of a copper/gold project

Gold bars
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The client identified significant improvement across all major financial KPIs including an increase in NPV in the order of 50%.

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Cost reduction

Money
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The client achieved $18m of cost reduction opportunities were approved by the management team across HR, SHEQ (Safety Health Environment & Quality), Finance, Discretionary. Spend (travel, telephony, consulting, postage and courier etc), Shipping and General Management

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Supply chain diagnostic 

Strat sourcning
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The client identified 17–31% of EBIT improvement opportunity and captured the gaps between customer expectations and client’s understanding of what customers valued 

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Design NPV optimisation – major coal mine/rail/port project

Heavy mobile
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The client identified more than 200 capex reduction ideas with the potential to reduce the capex by $3.6 billion and increase the NPV by $5.2 billion  

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Tightening the process for reviewing options in capital projects

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The client moved the first project into the engineering phase within 2 weeks from the identification of the alternatives (after it had sat around for 2-3 months)

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Diagnostic for MARC maintenance provider
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The client now understands where they stand relative
to other MARC contractors in terms of margins and
have a plan to change the MARC from money-losing to breakeven.

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Optimising sustaining capital budget and processes
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30% reduction in the capital budget with an
additional 10% identified if the company's cash flow
situation became dire given the price cycle

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Copper plant design NPV optimisation
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Identification and acceptance of ideas to generate a
US$1.1b uplift in expected value of the project across six
categories

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 Increase sustaining capital pipeline speed
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$19.5 M was cut from the Sustaining Capital Plan by removing poor business cases

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Open Pit Copper Mine
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By implementing a new run of mine (ROM) stockpile management process, the client achieved a 41% reduction in feed variability, and reduced consumables spend by $2.3m p.a.

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Reactor relining shutdown critical path reduction
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Despite the addition of four steps with a critical path duration of 104 hours, the team incorporated eight improvements worth 141 hours into the plan, resulting in a net critical path reduction of 37 hours or 5% from 30 days to 28.5 days.

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 Marine services provider
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The client chose not to pursue the acquisition, on account of the fact that the initial revenue forecast for FY 2010 was not going to be met

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Mining equipment manufacturer
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Client submitted a bid but was not successful. Instead of buying their way into the target's markets it was cheaper to organically enter the markets which the client initiated once the bid was not successful.

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 Drilling services business
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Client satisfied it had sufficient insight to make a decision within target's specified timeframe

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Latin American iron ore producer
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80% increase in NPV, a 49% increase in NPV / ton, and an 11% reduction in Capital Intensity

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 North American chemical site
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Opportunities to increase production in both the ammonia and acid plant by 2% by ensuring cross-crew adherence to best practice SOPs.

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Open pit and underground oil shale mine expansion
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Identified critical areas to be focused on during the next stage of the project planning

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Engineering Company Growth Strategy
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Five specific growth opportunities were identified

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Coal seam gas
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Identified cost areas where each mine had significant opportunity for improvement in operating cost per ton

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Arctic benchmarking
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Identified cost areas where each mine had significant opportunity for improvement in operating cost per ton

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 North American explosives manufacturer
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Opportunity to decrease unscheduled downtime by 20%. A more systematic PM program has the potential to dramatically reduce un-expected plant failure.

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Global market sizing for mining and construction equipment
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Developed a global expansion strategy focused on the high growth areas

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Airline – freight and FIFO
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Estimated future market growth based on planned projects and estimated project size (resource extraction, staff numbers, service requirements)

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Heavy equipment hire company
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Executed a comprehensive, 4-week commercial due diligence of the potential acquisition target

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 Portable equipment hire market sizing
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Built up a CSG demand forecast based on our assessment of the likelihood and timing of the proposed LNG projects

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 Medical business merger synergies and opportunities
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Identified significant value that could be realised through a merger

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FIFO Airline
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Able to reach decision in less than 4 weeks of PIP due diligence

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 Earth moving & mining services provider
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Provided focused insight into key market drivers, dynamics and outlook

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 Equipment manufacturer
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Identified issues with growth strategy

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 Underground contract mining services
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Identified slight exaggeration in management forecasts on existing mine life

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 EPCM contractor
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Sound summary of the target business structure and market positioning

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 Equipment parts manufacturer
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The value of the investment has increased over 40% in an 18 month period, with significant upside still possible

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 Review of building products business
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Client and debt providers better understood the business outlooks and were able to renegotiate terms

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Defence support
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Trained over 300 defence personnel in Lean and additional 30 personnel in how to implement Lean in a sustainable way

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Light commercial vehicles - global resources
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Savings of 28% - 39% across full range of light commercial vehicles (LCV)

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Print media sales force effectiveness
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$10 - $20 million in increased sales

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 Wooden products manufacturer
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Comprehensive assessment of the target positioning within the market with strategic insights into the likely long term financial performance of the target

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 Earth moving and mining contractor
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Comprehensive assessment of the target positioning within the market with strategic insights into the likely long term financial performance of the target

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 Specialist medical business
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Able to reach decision in less than 1 week of PIP due diligence

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 Building products business
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Provided focused insight into key market drivers, dynamics and outlook

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 Improving shutdown execution
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Confirmed and crystallised internal thinking on the need to increase shut team resourcing and provided a framework to build alignment on this issue with senior management

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 Australian Casino and Food/Beverage & Hotel Operation
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An improvement idea pipeline of $13mpa (25% more valuable than original target)

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Health benchmarking cost reduction
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5% labour cost saving opportunities identified within 4 weeks

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Open pit iron ore mine
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Identified opportunity to increase volumes worth $20 m USD per year

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Reformer shutdown critical path
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20% reduction in critical path – from the 40 days baseline to 32 days at completion

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 Underground Coal Management Operating System
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More detailed and comprehensive planning process

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Enhanced ability to react to change (within a shift, between shifts, over time)

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 Business Improvements – Fertiliser Production
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Increased throughput of an annualised value of $6 million and reached production target.

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Mining services provider
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Able to reach decision in less than 2 weeks of PIP due diligence

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Business restructure and sale during a down turn
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More than doubled appointments from sales calls

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Maintenance Services – Heavy Industry
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Savings of 16% in maintenance cost

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Heavy mobile equipment – global resources
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USD$150 million savings on capital, spares and services

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Strategic sourcing mining division
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Through consolidation and re-tendering, savings of over R8 million per annum (15% of addressed spend)

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Global food company
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Improved accountability through regular tracking and reporting of KPIs developed to reflect business group performance

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Mining House Strategic Sourcing
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Across the four categories sourced in wave 1, the client achieved $33 million of annualized savings locked-in.

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Metals Manufacturer – Sales and Marketing Effectiveness
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20-25% sales volume growth across product lines

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Cost reduction - coal
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Reduced actual cash cost by 13%

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Capital Optimization – Power Station Coal Supply
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Extend the life of supply, closing the gap between mine and power station life by 5 years

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Coal port capital optimisation
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Identified 40 ideas with an initial value of more than $400m through Idea Generation Sessions on an initial $2.0B capital spend

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Rapid sourcing savings across mines
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~3.5% reduction in spend of addressable suppliers in 21 weeks

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Capital optimisation Latin America
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Significant improvement across all major financial KPIs including an 71% uplift in NPV, 25% uplift in IRR and 15% reduction in Capital Intensity

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Capital optimisation - Longwall underground coal mine expansion
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$46 million of prioritised savings opportunities around design and scope

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Lean implementation at a government supplier
of electricity and energy
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The engagement had a rapid start with a pipeline of over 40 improvement ideas expected to deliver a 19% PoW throughput (physical ‘jobs’ completed) increase, amounting to an additional $147M p.a. in productivity, and reducing non-value-adding costs by $36M to $50M p.a

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Logistics Optimisation of a Mineral Sands Producer
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Identified $4million savings per annum, achievable in the first year, at an NPV of $16-19million

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Electricity Industry - Capital Works Program
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A simple practical suite of KPIs, tightly linked to individuals, and able to measure and predict performance against schedule requirements.

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Capital optimisation – Australian coal port expansion
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$370 million of identified savings opportunities around scope and estimate review

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Mining Major – rapid sourcing results
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$4.8m in savings achieved in 12 weeks over three areas

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Tackled $105m of spend

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Capital project management at greenfield mine site
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Bulk earth moving productivity increased from less than 2000 ccm per week to over 3000 ccm per week within 8 weeks

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Major logistics company - rapid sourcing
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Over 6.5% or $5.3 million in savings achieved on 30 non-strategic contracts with annual spend of $80 million

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Underground nickel - rapid start up/commissioning
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7 consecutive weeks above steady-state production rate within 6 months of the first blast.

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Global producer of specialty minerals and Cost Reduction
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The net impact on the business will be in excess of $50m per annum.

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Arctic Mine Performance Improvement and Cost Reduction
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$3 million in purchasing cost reductions, with an additional $5 million identified

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Underground hardrock - debottlenecking drilling
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Daily drilling rates improved 110% (by increasing availability and improving maintenance)

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Incumbent telco customer strategy
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A decrease in key supplier SLAs from 3 days to 3 hours, estimated to significantly further improve customer satisfaction.

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Sourcing and negotiating dedicated coal supply
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Plan for reliable coal supply and strategy for negotiating a win-win outcome for both parties.

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Facilitated discussions between regional and
national bodies of Minerals Association
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Reduction in the number of contractors, enabling the higher frequency and intensity of interfacing between client and contractors, and improving the sustainable economics of contractors.

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Value optimisation facilitation for greenfields
bauxite mine and alumina refinery
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High-level confirmation of potential for 15-20% value savings achievable through 15 major idea areas

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Iron Ore - Major Mine Expansion
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Identified potential for a 15% increase in volume resulting in an incremental NPV impact of $700M

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Port and Rail CAPEX improvement
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Reduction of capex to near original PFS figure – savings of over 20%

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Service Delivery Optimisation: Outsource versus Inhouse
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Reduction in the number of contractors, enabling the higher frequency and intensity of interfacing between client and contractors, and improving the sustainable economics of contractors.

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Precious Metal Refinery
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20% improvement in EBIT

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40% reduction in overtime across the site

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Capital optimisation for an emerging Iron Ore producer
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Identified $202m in Capex reduction ideas through multiple idea generation sessions

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Launching continuous improvement for a
East European coal producer
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Increase mine volumes by 6-10% with the existing equipment and crews by reducing downtime and increasing throughput rate

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Open Cast Coal Mine
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98% of YTD budget achieved, making budget for the first time in 5 years

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Capital Reduction Diagnostic for an Engineering Consortium
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Conforming bid redesigned to come in at 52% of original bid

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Capital Optimisation for a global coal producer
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Identified 120 ideas with an initial value of $1.2 billion through multiple Idea Generation Sessions

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Australian Media Company
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20% of FTE spend eliminated by (i) eliminating outcomes, (ii) reducing targeted service levels, and (iii) simplifying tasks

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Additional 20% of FTE spend transferred back to the BUs for rationalisation

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Division of a Global Miner
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Separation of the 2 businesses without increased headcount

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29 % decrease in G&A headcount relative to pre-merger organisation

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European Nickel Refinery
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$40 million saving in capital cost

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4% increase in output above record production rates, with minimal capital spend

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European Copper Refinery
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80% improvement in "on-spec" loop production (essential to the elimination of cathode downfall

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75% reduction in cathode downfall

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Multi-site Miner
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Over $380m of cash was delivered to the bottom line in 6 months (annualised rate of $530m)

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First cash savings were flowing within 1 week of project inception

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European Head Office Metal Purchasing
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Over 100% increase in tonnes of cobalt produced from custom feed sources

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Approximately $50 million in additional, annualised revenue generated

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Rapid Sourcing - Coal
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Locked in savings of ($8M) within 10 weeks.

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Open Cut Coal Mine
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ROM coal production raised by 45% (12.5Mtpa)

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Raised the capacity of the mine’s major bottleneck, explosive loading, by 73%

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Capital Optimisation – African Underground Mine
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Increased the potential project NPV by roughly 500%

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Increased the maximum potential annual output from the mine by 50%

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Capital Optimisation –
Brownfield expansion of underground Nickel and Copper mine
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Improved the project’s NPV from below zero to over $250 million

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Capital optimisation – Iron ore mine/rail/port system
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20% CAPEX reduction on the primary project under review

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Hard wiring the operation for a successful capital commissioning
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Build the management infrastructure for a multi-billion dollar, greenfield, mining and processing site

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Iron Ore Developing Nation
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The PIP ROCX process identifies the drivers of value

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Infrastructure Bottleneck
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impartial diagnosis and shared pathway forward

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Iron ore port and rail system
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Increasing overall weekly tonnage rate by 35%

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Increasing ship loading rates

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Contractor Reduction - Major Iron Ore House
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Reduced contractor spend by $30m p.a. within 4 months of being on site

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Multi-plant metals processor
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Improvements have been recorded and sustained in almost all performance metrics

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Business Process Outsourcing (BPO)
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Performance turnaround at a leading provider of global outsourcing services

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Capital Project Delivery Assurance
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Identified areas of weakness and high risk in the approach to project execution

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Iron Ore Train Load Out
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63% reduction in railway Wagon Total Turnaround Time (WTT)

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60% reduction in Wagon Handling Time (WHT)

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Procurement - steel (2)

In eight months they had locked in $20m of savings with an additional $56m in implementation.

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Procurement - steel

Total value of ownership driver trees

Reverse engineered suppliers’ costs

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Underground Coal Mine (3)

28% increase in ROM tonnes production rate

10% increase in prime product yield

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Underground Nickel Mine

40% reduction in loader (a bottleneck) breakdowns

11% increase in LHD availability

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Contract Miner Performance Improvement

A number of Contract Mining Companies have engaged PIP to make improvements in their already lean businesses

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Underground Copper Mine
22% improvement in tonnes to the surface
25% improvement in tonnes to passes
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Copper Processing and Smelting
EBIT improvements of $80m for the financial year, and $140m+ on an annualized basis
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Open Pit Coal Mine
Delivered 4 out of 5 months of increased EBIT
Increased extracted coal to exposed inventory ratio
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Strategic Sourcing - Financial Services
Reductions in hardware & software maintenance cost
Significant reduction in contractor hours utilised
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Metals Mine
20% improvement in truck load factor
38% improvement in production drill metres
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Zinc Mine & Refinery
US$4m savings delivered
US$9.5m
in implementation
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Procurement
Reductions in spend per category ranging from 39% to 6%
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Metal Smelter (2)
$7.7 million reduction in costs
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Underground Coal Mine (2)
28% decrease
in costs per
ton of power station coal
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Diamond Mine
weekly underground development
up 50%
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Open Cut Iron Ore
Increasing truck load factor
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Underground Coal Mine (1)
Highest average daily production rate in past 27 months.
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AsiaPacific Call Centre
Level 1 Resolution Rate Improvement
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Nickel Mine and Smelter
The best 4, 5 and 6 month production periods in plant history
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Integrated Steel Mill
Throughput increased by 52%
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Arctic Diamond Mine
20% increase in tonnes mined
7% reduction in total mine costs
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Metal Smelter (1)
Cost curve rank improved from 55% to 15%
Annual improvement of 30.5m/yr
Free cash flow up by 123%
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Australasian Metal Manufacturer
$80m annualised improvement
Reduction of total number of injuries by 15%
Production increase: Zinc & Silver up 28%, Lead up 25%
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Integrated Chain: Commodity Producers/Rail/Port
18% increase in throughput in 4 months
Logistics system de-bottlenecked
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Australian Mobile Phone Company
4.5% reduction in total spend, 24% saving on costs tackled by PIP
Reduced inbound call centre costs by 55%
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Integrated Metals Manufacturer
Cumulative EBIT benefit of $26m
Annualised improvement of $34m/year
Cost/tonne down 28%
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European Paper Mill
26% increase in production
   - folio up 52%
   - A4 up 38%
   - rolls up 13%
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Recycled Fibre Plant
EBITDA increased from $0m to $12m
Production up by 31%
Variable cost down 22%
Total downtime reduced from 11 to 4 hrs/wk
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UK Paper Mill
UK coated market share increases of 110%, UK sheet sales up by 153% (£155/t margin benefits for UK sales over export alternative)
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US Packaging Manufacturer
Reduced procurement spend by 15%
Significant consolidation in suppliers
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Multinational Mining & Mineral Processing Company
8.5% reduction in procured spend in 8 months*
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Mineral Processor
Increased tonnes by 19% in 6 months
16% increase in line rate
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Rapid, sustainable results

Our Clients' Results Index

BUSINESS IMPROVEMENT PROCESS IN MINE
ROCX COOPER GOLD NPV
COST REDUCTION
SUPPLY CHAIN DIAGNOSTIC
Design NPV optimisation - major coal mine/rail/port project
Tightening the process for reviewing options in capital projects
Diagnostic for MARC maintenance provider

OPTIMISING SUSTAINING CAPITAL BUDGET AND PROCESSES

COPPER PLANT DESIGN NPV OPTIMISATION

INCREASE SUSTAINING CAPITAL PIPELINE SPEED

OPEN PIT COPPER MINE

REACTOR RELINING SHUTDOWN CRITICAL PATH REDUCTION

MARINE SERVICES PROVIDER

MINING EQUIPMENT MANUFACTURER

DRILLING SERVICES BUSINESS

LATIN AMERICAN IRON ORE PRODUCER

NORTH AMERICAN CHEMICAL SITE

OPEN PIT AND UNDERGROUND OIL SHALE MINE EXPANSION

ENGINEERING COMPANY GROWTH STRATEGY

COAL SEAM GAS

ARCTIC BENCHMARKING

NORTH AMERICAN EXPLOSIVES MANUFACTURER

GLOBAL MARKET SIZING FOR MINING AND CONSTRUCTION EQUIPMENT

AIRLINE - FREIGHT AND FIFO

HEAVY EQUIPMENT HIRE COMPANY

PORTABLE EQUIPMENT HIRE MARKET SIZING

MEDICAL BUSINESS MERGER SYNERGIES AND OPPORTUNITIES

FIFO AIRLINE

EARTH MOVING & MINING SERVICES PROVIDER

EQUIPMENT MANUFACTURER

UNDERGROUND CONTRACT MINING SERVICES

EPCM CONTRACTOR

EQUIPMENT PARTS MANUFACTURER

REVIEW OF BUILDING PRODUCTS BUSINESS

DEFENCE SUPPORT

LIGHT COMMERCIAL VEHICLES - GLOBAL RESOURCES

PRINT MEDIA SALES FORCE EFFECTIVENESS

WOODEN PRODUCTS MANUFACTURER

EARTH MOVING AND MINING CONTRACTOR

SPECIALIST MEDICAL BUSINESS

BUILDING PRODUCTS BUSINESS

IMPROVING SHUTDOWN EXECUTION

AUSTRALIAN CASINO AND FOOD/BEVERAGE & HOTEL OPERATION

HEALTH BENCHMARKING COST REDUCTION

OPEN PIT IRON ORE MINE

REFORMER SHUTDOWN CRITICAL PATH

UNDERGROUND COAL MANAGEMENT OPERATING SYSTEM

BUSINESS IMPROVEMENTS - FERTILISER PRODUCTION

COMMERCIAL DUE DILIGENCE: MINING SERVICES PROVIDER

BUSINESS RESTRUCTURE AND SALE DURING A DOWN TURN

MAINTENANCE SERVICES - HEAVY INDUSTRY

HEAVY MOBILE EQUIPMENT - GLOBAL RESOURCES

STRATEGIC SOURCING MINING DIVISION

GLOBAL FOOD COMPANY

MINING HOUSE STRATEGIC SOURCING

METALS MANUFACTURER - SALES AND MARKETING EFFECTIVENESS

COST REDUCTION - COAL

CAPITAL OPTIMISATION - POWER STATION COAL SUPPLY

COAL PORT CAPITAL OPTIMISATION

RAPID SOURCING SAVINGS ACROSS MINES

CAPITAL OPTIMISATION LATIN AMERICA

CAPITAL OPTIMISATION - LONGWALL UNDERGROUND COAL MINE EXPANSION

LEAN IMPLEMENTATION AT A GOVERNMENT SUPPLIER OF ELECTRICITY AND ENERGY

LOGISTICS OPTIMISATION OF A MINERAL SANDS PRODUCER

ELECTRICITY INDUSTRY - CAPITAL WORKS PROGRAM

CAPITAL OPTIMISATION - AUSTRALIAN COAL PORT EXPANSION

MINING MAJOR - RAPID SOURCING RESULTS

CAPITAL PROJECT MANAGEMENT AT GREENFIELD MINE SITE

MAJOR LOGISTICS COMPANY - RAPID SOURCING

UNDERGROUND NICKEL - RAPID START UP / COMMISSIONING

GLOBAL PRODUCER OF SPECIALTY MINERALS AND COST REDUCTION

ARCTIC MINE PERFORMANCE IMPROVEMENT AND COST REDUCTION

UNDERGROUND HARDROCK - DEBOTTLENECKING DRILLING

INCUMBENT TELCO CUSTOMER STRATEGY

SOURCING AND NEGOTIATING DEDICATED COAL SUPPLY

FACILITATED DISCUSSIONS BETWEEN REGIONAL AND NATIONAL BODIES OF MINERALS ASSOCIATION

VALUE OPTIMISATION FACILITATION FOR GREENFIELDS BAUXITE MINE AND ALUMINA REFINERY

IRON ORE - MAJOR MINE EXPANSION

PORT AND RAIL CAPEX IMPROVEMENT

SERVICE DELIVERY OPTIMISATION: OUTSOURCE VERSUS INHOUSE

PRECIOUS METAL REFINERY

CAPITAL OPTIMISATION FOR AN EMERGING IRON ORE PRODUCER

LAUNCHING CONTINUOUS IMPROVEMENT FOR A EAST EUROPEAN COAL PRODUCER

OPEN CAST COAL MINE

CAPITAL REDUCTION DIAGNOSTIC FOR AN ENGINEERING CONSORTIUM

CAPITAL OPTIMISATION FOR A GLOBAL COAL PRODUCER

AUSTRALIAN MEDIA COMPANY

DIVISION OF A GLOBAL MINER

EUROPEAN NICKEL REFINERY

EUROPEAN COPPER REFINERY

MULTI-SITE MINER

EUROPEAN HEAD OFFICE METAL PURCHASING

RAPID SOURCING - COAL

OPEN CUT COAL MINE

CAPITAL OPTIMISATION - AFRICAN UNDERGROUND MINE

CAPITAL OPTIMISATION - BROWNFIELD EXPANSION OF UNDERGROUND NICKEL AND COPPER MINE

CAPITAL OPTIMISATION - IRON ORE MINE/RAIL/PORT SYSTEM

HARD WIRING THE OPERATION FOR A SUCCESSFUL CAPITAL COMMISSIONING

CAPITAL OPTIMISATION - IRON ORE

INFRASTRUCTURE BOTTLENECK

IRON ORE PORT AND RAIL SYSTEM

CONTRACTOR REDUCTION - IRON ORE

MULTI-PLANT METALS PROCESSOR

BUSINESS PROCESS OUTSOURCING (BPO)

CAPITAL PROJECT DELIVERY ASSURANCE

IRON ORE TRAIN LOAD OUT

PROCUREMENT - STEEL (2)

PROCUREMENT - STEEL

UNDERGROUND COAL MINE (3)

UNDERGROUND NICKEL MINE

CONTRACT MINER PERFORMANCE IMPROVEMENT

UNDERGROUND COPPER MINE

COPPER PROCESSING AND SMELTING

OPEN PIT COAL MINE

STRATEGIC SOURCING - FINANCIAL SERVICES
METAL MINE
ZINC MINE & REFINERY
COAL PROCUREMENT
METAL SMELTER (2)
UNDERGROUND COAL MINE (2)
DIAMOND MINE

OPEN CUT IRON ORE

UNDERGROUND COAL MINE (1)

ASIA PACIFIC CALL CENTRE
NICKEL MINE AND SMELTER
INTEGRATED STEEL MILL
ARCTIC DIAMOND MINE
METAL SMELTER
AUSTRALIAN METAL MANUFACTURER
INTEGRATED CHAIN: COMMODITY PRODUCERS/RAIL/PORT - DEBOTTLENECKED
AUSTRALIAN MOBILE PHONE COMPANY
INTEGRATED METALS MANUFACTURER
EUROPEAN PAPER MILL
RECYCLED FIBRE PLANT
UK PAPER MILL
US PACKAGING MANUFACTURER
MULTINATIONAL MINING AND MINERAL PROCESSING SITE
MINERAL PROCESSOR
 

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Access detailed analysis of process, timing and outcomes by clicking the see detailed analysis links beside specific projects

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