1. Case Study – Proactive Approach to Industry Downturn
INDUSTRY CHALLENGE
In a year of global economic uncertainty, with falling commodity prices and rising capital and operating
expenses, the mining industry has been hit hard. Players across the board are feeling the pinch, and spending
cuts, project delays and job losses are the result. The decreased demand for thermal coal world wide, and the
resulting abundant stockpiles have created a buyers market. The resulting spot market and competition for
sales have continued to keep prices on a downward trend.
CLIENT APPROACH
Diminished demand for coal, resulting stockpiles and plummeting prices have spawned a variety of reactions.
We’ve seen mines close and radical cost cutting exercises, including major job losses. For one client, the
solution to the industry unrest was to focus on the controllable elements, and not worry about external issues
over which they had no influence. Acknowledging the industry trend over recent years toward lower
productivity at higher cost, they decided to tackle this problem and look towards the longer term profitability
issues. They already boasted a stable workforce who liked the culture, the leadership group, the camp
facilities, rosters and the $ on offer. Like many companies in the region, the inflated coal prices over the last
couple of years had caused them to relax a little, and as a result productivity levels had slumped. The solution
was a conversation with Confiance about a pro active approach to assess the reasons for their reduced
performance, particularly with their truck and shovel fleets, and the development of initiatives for
improvement.
Utilizing the technology of Real Time Video (RTV) and the expertise of the Confiance team, this client was
able to use video analysis of truck drivers and excavator operators as an opportunity to up skill their
workforce, promote team dynamics and improve mine productivity. The development of the RTV analysis
concept, allows the analysis and assessment of key areas for performance improvement. The technology, in
conjunction with open workshops with operators, allows organisations and individuals to self appraise and
assess crew performance, and assists operators to recognise their individual strengths and development
needs. This client had the foresight to see, that the gains in productivity, if achieved, would more than
outweigh the cost of the RTV process. The additional benefits of focused skill development, team building and
work place satisfaction, along with the identification of strengths and developmental needs in the work force is
invaluable.
OUTCOME
What the client observed was a significant reduction in both reaction and spot times under the excavators, and
a greatly improved performance at the dump site. Operators, seeing their own performance on video, were
quickly able to see areas where they could improve. Even more interesting, is the fact that the veteran
operators saw, perhaps for the first time, why it is important to keep spot times low, why it costs money to
have an excavator bucket not swinging, and the knock on impact to productivity from bunching - simple, but
powerful wake up calls, shared in a Jo Westh, Confiance General Manager on 07 3864 0500.
For more information please contact non-threatening team environment. Ultimately the company was able to
use this slower economic period as a time for consolidation, internal growth and development.
Confiance would like to share the value in our simple but powerful solutions to productivity decline. We
encourage you to explore the concept of RTV as an invaluable tool to improve the outputs from your
workforce, encourage team building and unity, and reinforce performance improvements.
For more information please contact Jo Westh, Confiance General Manager on 07 3864 0500.
Offices: Level 2, 11 Lang Parade Tel: + 61 (0) 7 3864 0500
MILTON QLD 4064 Fax: + 61 (0) 7 3864 0599
Email: info@confiance.com.au Website: www.confiance.com.au