Mining companies have little control over the demand for, supply of, and pricing of their product. Even more so over the last few years, the level of uncertainty has increased significantly, and there is always a degree of risk due to constant changes in global mining policies. Because of this, there is clear opportunity for mining companies to add value to their businesses by having the ability to react quickly to market changes. Even in situations with a robust underlying demand, having the ability to improve productivity, efficiency and profit margin can be the difference between attracting and not attracting capital, not only for newcomers but also for those well established in the mining industry.

There are many challenges facing mining companies today

Mining companies need to make strategic decisions that involve the allocation of significant amounts of capital at all stages in the mining process from exploration through to production. All along the way, they must also make operational decisions designed to maximize return on their investments on an ongoing basis. Small improvements in efficiency in the production line can have a fairly large impact on the bottom line. But to truly achieve operational efficiency, information and data must be shared across the operation, between departments, and between management levels.

Often complex and large in terms of both organisational and budget requirements, projects in the mining industry are often in remote locations. Because of this, the ability to track operations closely and quickly is a key to success. ASX listed mining companies also contend with providing accurate, forward-looking financial guidance to the capital markets, where results are highly scrutinised and “missed quarters” can have a negative impact on stock price. This is yet another reason why having accurate and timely data is critical for mining companies.

Move from siloed data sources to Integrated Planning in mining

A cloud-based connected planning platform unifies data, people, and plans within a single system. From an operational and tactical perspective, the Chief Operating Officer, together with regional and mine management teams, need specific and accurate financial and operational information to assess each situation and make the right decisions regarding different mining sites.

Changes in commodity prices, or currency fluctuations coupled with changes in production costs (i.e. fuel increases), can impact the overall mining plan as well as the financial plan. Having the ability to quickly, easily, and accurately assess the necessary data to alter assumptions used to plan and forecast and to keep key stakeholders aware of any changes is critical to business success. When you can confidently and transparently keep track of all the resources going into various capital projects, it makes it easier for the entire organisation to plan its allocation of resources and communicate progress to investors and key stakeholders.

Empowering mining companies to make better more timely decisions.

A Connected Planning approach for mining companies means that all relevant data is modelled in a single, centralised platform. In addition to traditional financial planning, a connected planning platform can be used to plan for, and link together plans from every functional area of the business, including production, Supply chain,  HSEC, Workforce planning etc..

This empowers businesses to make quicker and better-informed decisions, creating a competitive advantage. Models can be built quickly and without dependence on IT or advanced coding skills to connect different time horizons. This allows users to predict monthly and quarterly production figures on the fly, based on actual daily production.

Because all relevant data is stored within the same system and shared collaboratively, it improves the natural downstream flow of information in the production process and stockpile management.

Bi5 Solutions has built a reputation based on many years of experience working with mining companies in Australia to improve the enterprise performance management processes.

We’ve partnered with mining and mining services companies on improving the following: strategic and long-range planning, financial close and consolidation, detailed mine site planning, reporting and analysis of various aspects of mining operations (both financial and operational), and detailed business intelligence (BI) projects at mine-site level.

Contact us at bi5.com.au to find out more.

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Many organisations today still use spreadsheets or specialised legacy systems for budgeting and planning; however, these systems were never designed for analytics or reporting.

Those same organisations, if they are using analytics at all, are often relying on their IT to support stand-alone BI solutions.

Today, planning and analytics tools are playing an increasingly critical role in transforming the way organisations gather, store, analyse and interpret data for strategic business decision making.

In the information age we are now living in, managers must   start viewing information as an important strategic resource that if used intelligently will improve their business’s performance and competitive advantage.

The volume, variety, velocity, and veracity of data affecting the organisation’s operations and bottom line continues to increase on daily basis and not all of this data is relevant for strategic decision making.

Data is also dispersed across many ‘point solutions’ that address specific operations of the business. These systems are critical however, to get a complete and overall picture of what is happening in the business, relevant data from these various systems must be integrated into a single source of the truth which is then used for both planning, reporting and analysis.

As an example, we have a client who has a fleet of over 150 trucks and ~300 pieces of equipment and that use sophisticated tracking software and sensors to capture data about routes, speeds, cycle times, etc. A second ‘system’ built into the vehicles which captures engine performance, and a third to measure loads. The financial data on fuel, insurance and other costs associated with the vehicles are yet in a fourth system.

Meaningful data from all these systems needs to be identified, extracted, and integrated into a single complete picture.

The base data used for planning and forecasting, in many cases, is the same as the recent historical actual data used for reporting and analytics.

Managers must be able to identify and separate the relevant data from their systems and find methods on how best to  connect to data from the other systems. The next step in the process is to then “Declutter” by sorting out ‘the clean from the dirt’ and then integrate into a common “Datahub” which can then be used for both planning, reporting and analysis.

Basing decisions on information that is not correct, not current, or not complete is a sure recipe for failure. On the contrary, when the business possesses relevant facts and knows how to use them, improved product innovation, customer relations and operational excellence will be achieved.

Fully knowing and understanding full potential inherent in business planning and analytic tools is the starting point for those companies that strive to repair the broken link between business planning and forecasting and actual performance.

Investments in planning (budgeting and forecasting) and analytic tools if not well researched and planned for can actually cost the company financially, time, resources etc.

As I mentioned above, not all data is important. Remember data collection and storage can be a very costly and time-consuming exercise.

What must you do then to ensure you’re not wasting your time and other resources on non-essential data?

As a manager, you must first establish your company’s competitive parameters within its operating markets and doing so will then help you decide which information to focus on.

To successfully execute your company’s strategies, your strategy should be based on information. In other words, information should be used to as a strategic resource to determine your company strategy.

This means business analytics supporting strategy not only at the functional level but also at the strategic level. In some organisations, business analytics supports strategy performance only at the functional level, monitoring the individual function’s achievement of targets.

There is nothing wrong with this. The problem arises when there is no feedback to the strategic level.

It is therefore important to define targets based on the company’s strategy and the process is made easier if the managers have access to relevant facts that can be used to determine the kind of information relevant for the strategy development and monitoring of performance.

In organisations where business analytics tools give feedback to the strategic level and information is used as a strategic resource, if one department learns to improve its processes through the use of information, the strategy team receives the news and spreads the message throughout the organisation as best practices.

Use of information should both be a bottom-up and top-down process. For example, information should flow down from the top via strategy maps and back up via scorecards and business performance management solutions.

When there is this flow of information up and down, deviations from targets can be measured and analysed and in turn the strategy is adapted and changed to accommodate changes in the market and within the organisation itself.

Dialogue between the strategy and business analytics functions is therefore highly encouraged.

When there is dialogue, there is improved coordination of efforts which can lead to the identification of the organisation’s critical success factors, development of KPIs and the definition of who is responsible for the various KPIs.

Aligning planning and analytics and strategy and in turn linking business analytics and strategy can help provide information about which products create the business’s income over its entire lifetime and information about relevant product attributes to develop for the different customer segments.

Furthermore, investing in business intelligence and analytics and using information as a strategic resource can also provide management with the relevant information and knowledge about which business processes to strengthen and develop in relation to the company’s strategy and competitor’s strengths and activities.

End-to-End Business Operations System for Mining

Why should rolling forecasts become your new normal in budgeting

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Many Australia mining companies have evolved through exploration discoveries, purchase of brownfield operations, rebirth of old operations and the takeovers of ailing operations whose fortunes have fluctuated with the ebbs and flows of their commodity prices. A consequence of this is that for these companies, data gathering technologies have not evolved with the business, and in most case are limited to spreadsheets and stand-alone software packages that require many hours of manual manipulation of information to produce meaningful reports. Coupled with poor control and storage of historical data and it a far from ideal solution for tracking their mining operations.

Most mining businesses have good financial accounting or ERP software in place, due in large part to the universal common structure of finance and accounting. However, when it comes to a mining business’s operations, very few are structured the same. The result of this is there are less, or very few, ready-made out of the box mining operations platforms, which in turn means it is something that generally is not done very well in the mining industry.

Whilst technology is certainly evolving in the industry, many of the solutions are specialist point solutions that address specific areas, for example: drilling, plant management, safety, maintenance, milling, and haulage, where modern mining equipment and vehicles are fitted with sensors to provide performance data, to list a few. Each of these ‘systems’ collect data and report on performance in that specific area, and the do it well. However, to get an overall view of the activities and performance of the company operations, ideally data from all these systems needs to be integrated into a single single source.  The problem is these systems do not easily interface with each other, commonly resulting in large amounts of manual handling and manipulation of data for reporting, invoicing, cost control, budgeting, forecasting etc.

It is in these manual processes where the real hidden costs are. Lack of quality data, repetitive data preparation, and timely availability of data which impact productivity and decision making, are all combining to cost mining companies millions of dollars.

Most of these companies have little appetite for totally changing their systems to a complex and expensive all-encompassing system. As well as the cost, the fear of business interruption, data loss, staff disruption and training, and the stress of running parallel systems in the beginning, can be overwhelming. That is if they can first find the right software package that mirrors their business.

This is the problem the End-to-end Business Operations System (EEBOS) aims to address. Developed by bi5 and Pure Integral, two Perth based companies, this systems fits in with existing systems where required, and can even work with existing spreadsheet based reports and data entry, integrating all of this data through the use of AI, to provide a single source of data on which the full end to end operating process can be monitored and analysed.

bi5 and Pure Integral initially worked together at a well-known mining service company, that is now listed on the ASX. It started life as small construction material supplier of sand, gravel, and crushed stone to the mining industry especially in remote locations. To do this work the business had loaders, road trains, graders, water carts, mobile crushing units and other equipment. Pretty simple and basic activities, however the owner and management of the company decided that technology was going to be their competitive advantage and point of difference so invested in technology right from the start. Whilst they still had the specialist point solutions for the different functions, they focused on automating the integration of data into a single source of the truth for reporting and analysis of the operational and financial performance.

All the performance and load data from the vehicles and equipment is automatically collected and integrated with cost data from Pronto ERP and Payroll systems to provide comprehensive and timely reporting, invoicing both internally and to clients.

The benefits of EEBOS for Mining Operations included:

• Business wide transparency of performance
• Achieve alignment between strategic, financial and operational goals
• Increase, planning, budgeting, forecasting and decision making accuracy and speed
• Automate time consuming and error prone manual tasks
• Drive accountability over results

The first step in our process is to “look under the bonnet” by reviewing all your data capture points. In many cases these are spreadsheets, stand-alone and SAAS software packages. We then trace and map the information flow, collection, and output points. Most importantly we have one on one discussions with all those involved. By doing this we get a good understanding of the problems that need to be solved and we identify your internal clients and what output they require from the data.

We then design a staged workflow that best fits your business. Each stage is designed to stand alone until integrated into the next stage. This methodology provides minimal disruption to staff and systems and is staged to the comfortable capacity of the business. The business is then able to choose when and if it wants to progress the next stage.

Pure Integral and bi5  have now formed a partnership and combined their industry and technical expertise and experience to provide an optional solution to this dilemma. Through well designed, robust, and automated plugin features, smart data bases and Power BI dashboarding we have developed a solution to address this problem and provide a data integration, reporting and analysis and budgeting and forecasting platform with minimal disruption.

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The disruption of business models through the advancement of digital technology has been a reality for other industries for many years. The digital transformation is now impacting the mining industry. From day-to-day data management to the prevention of bottlenecks and inefficiency, information technology is transforming the way the mining industry operates. Increasing demands for efficient production and worker safety are requiring traditional mining companies to embrace innovation and implement information technology to ensure advanced manufacturing and competitiveness throughout the industry.

One of the key issues that hinders data transformation in the mining industry is the fact that most companies have specific point solutions already in place to address the numerous different areas of operations, drilling plant management, safety, maintenance, milling, haulage etc. all with there own data and reporting functions. Most of these organisations have little appetite for totally replacing these systems to a complex and expensive all-encompassing system so they use error-prone manual spreadsheet processes to extract data and cobble together reports for decision making, managment and statutory reporting.

What is reaaly needed is an end to end process which automates the integration function, replacing these manual and repetitive reporting functins with a single source of the truth which provides decision makers with up to date and accurate information they can rely on.

 The following will list three of the main areas that will benefit from the implementation of information technology in the mining industry.

More Data-driven decisions

Mining companies are data-hungry. Information technology can help them locate mineral veins, determine operational risks and streamline operations. It’s no surprise that mining companies are revolutionising how they collect data in the field. With the help of the Internet of Things and advanced software, nearly every device in a modern mine should be “smart” and constantly relaying data such as water pressure, temperature, concentration of gases and other information. With this data, managers can take fast, decisive action to increase efficiency, improve safety and increase the operation’s sustainability.

Process Automation

Mining organisations are realising the benefits of automation in terms of improved productivity, enhanced efficiency and better safety. This translates into greater reliance on technology through remote-controlled equipment and management of mining operations across diverse locations from a central hub.

Mining organisations typically have various systems to manage different sets of data. For mine automation to be effective, it is crucial to ensure systems integration so that all systems work in a synchronous manner to enable seamless data exchange. Since human intervention is minimal, the system should provide automatic alerts and initiate corrective action.

Remote Operations

Connectivity is a challenge that is inherent with mining operations as most sites are located in far-flung areas. This makes it important to ensure remote-controlled operations of the various mining sites through an effective centralized management structure.

Remote operations also translate into lesser on-site team deployment, helping reduce costs and improve employee safety and productivity. At the core of the remote operation is an efficient and reliable communication system – one that ensures seamless channels for interaction between the control hub and various mining sites and enables collaboration between teams at each of these locations.

The Future of Mining

With time, information technology’s predictive and analytical capabilities will improve. Management won’t be pushed out of their decision-making role, but in situations where many variables are at play or time is of the essence, mining companies will likely move operations to algorithms. Data and specifically the ability to organise, manage, process and utilise that data will become a competitive differentiator.

We can also expect to see further developments to make mining more sustainable. Companies will put the power of data toward minimising mining’s negative effects on surrounding ecosystems and communities, moving toward resource extraction with minimal footprint.

Information technology is radically transforming mining, with an eye toward productivity, safety and sustainability. With time, we’ll see even more significant changes.

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Mining Companies Must Transform Their Businesses

The mining industry is being reshaped by trends requiring executives to adapt efficiently to realise opportunities and manage challenges. Mining is characterised by volatile market conditions, capital intensive assets and reactive operating models. Now, it is being faced with the shift towards renewable energy, labour disruption and operational/regulatory challenges. Due to this, being able to access insights to inform decisionmaking and action is one of the most valuable assets to managers.

As mining companies progress to a margin based approach rather than output, the focus is on improving efficiency, productivity, service and differentiation from competitors. This requires companies to capitalise on the benefits of business intelligence in mining and to start extracting insights from their own data.

Solving Industry Challenges Through Business Intelligence

Mining executives who want to overcome industry challenges and stay ahead in the game can leverage the power of business intelligence (BI) solutions to provide them with the right insights and agility to maintain performance whilst reducing costs. This software can help executives make faster, more informed decisions when it comes to HR planning, legal compliance, trend analysis, logistics and strategic planning.

By implementing a BI software that is tailored to the company’s needs, managers can make well-informed business decisions and gain a competitive advantage. For example, they can use information from indicators in the external environment and make accurate forecasts about future trends or economic conditions. Timely, quality information is like having a crystal ball that can indicate the best course of action to take.

How Business Intelligence Software Can Improve Mining Operations

With the future of business intelligence in mining, it is possible for companies to make decisions based on concrete facts about performance and potential. Mining companies are able to look at areas of quality and areas that fuel inefficiency, this allows for strategic decision making and increased efficiency. Whether a mining operation is looking to open up a new dig, expand their workforce, or market their products to a new customer, using comprehensive business intelligence tools can help guide them to better decisions. Every aspect of a company’s operations can be analysed using big data and BI software so that no potential failures or inefficiencies slip through the cracks and cause potential assets to be lost.

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The modern mine site is a complex large scale operation reliant on technology, equipment, staff and a multitude of decisions. To maximise profitability, engineers, machine operators and supervisors must drive efficiency throughout the entire process, but often the insights required to do this effectively are hidden in data.

In a previous blog, we outlined the benefits of an integrated business planning system. Read on to find out how this approach, combined with business intelligence, is being used by leading mining organisations to drive digital transformation, better decision-making and greater financial returns.

Integrated Business Planning for Mining Companies

Mining companies are faced with complex production lines requiring precise metrics and speedy execution. Each station, department, and division deals with masses of data and works to tight production schedules. Usually, huge volumes of data are stored in various ERP software, which leads to siloed data and a lack of visibility across the entire organisation.

Understanding the true cost of drilling, transportation, refining and labour at your mine site is vital for ensuring efficiency throughout the process. This is impossible to achieve without a centralised view of accurate data and transparency into the impact operations has on various areas of the business.

Integrated Budgeting and Planning (IBP) solutions overcome these challenges and create numerous benefits for mining companies through:

• Activities such as quality control and production management can be monitored, cross-examined and planned in accordance with resource availability.
• A centralised view of what is required to produce the mineral/metal, incorporating planning, machinery, labour and production costs creates transparency and allows for a fast response to any inefficiencies or obstacles that may become apparent.
• Providing supply and demand forecasts for the product to ensure the most efficient use of resources.

A unified solution for business intelligence and enterprise performance management is achievable by implementing the right software such as; Board, Jedox, Acterys & Microsoft Power BI

Maximise Performance & Minimise Cost

IBP simplifies the costing of each production line by pulling together data from multiple sources automatically without the need to rely on spreadsheets from each department. It also enables budgeting to be standardised across each department via workflow processes, creating transparency and control.

Ultimately, it provides clear visibility into variables such as labour and machinery in order to accurately match capacity with resources required for production.

Final Thoughts

Mining has always been a competitive, high-stakes industry. Today, it faces highly volatile markets, increasing financial regulations and growing exposure to high-profile environmental issues. The need for greater visibility and control throughout the entire production process is apparent. No matter which stage you sit in, an integrated business planning solution will give you the transparency you need and help drive digital transformation.

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