Case Study: Site Labour OptimisationIron Ore Mine - WA, Australia
The Challenge
As part of a business-wide initiative to reduce operating costs, the client requested the assistance of EnterpriseIS to identify and implement cost savings.
Cost savings were to be implemented within 6 months and be achieved without adversely impacting operations.
The Solution
An analysis of the critical tasks and their associated costs was conducted to identify areas of potential savings in the utilisation of site labour. This resulted in closer scrutiny of workflows to identify current costs of doing business and to build the business case for change.
Our project team worked directly with site personnel to understand the crucial site processes to ensure the solution did not adversely affect service levels. The solution was a workforce model that optimised utilisation of corporate, on-site and temporary labour resources while meeting operational deliverables.
During the implementation phase, the client’s procurement team were engaged to ensure preferred suppliers were used and that their rates were competitive for the services provided. Additionally, training was undertaken by personnel responsible for the process, to ensure on-going application of what the project implemented.
The Results
- At the completion of this project, the client’s operations were aligned with the new structure and processes to significantly reduce the costs of the onsite workforce.
- The project resulted in savings of $1.3M in the first year with ongoing savings expected to be in the vicinity of $980,000 per annum in the following years.