Successful intervention by Kaizen Institute South Africa in platinum smelting and other areas across the local mining industry mean that the Kaizen method has the potential to make a real difference in this vital sector of the economy.
Mining in South Africa is an important component of the country’s economy, contributing about 7% to gross national product, while employing around 5% of the country’s workforce. Historically mining has been a larger component of GDP and employed more people. Today it remains a vital employer and creator of wealth.
In the increasingly competitive global mining industry, with giant corporations competing for dominance, it is essential that the South African mining and mineral processing industries stay at the forefront of developments, not only in technology, but also in management and optimum use of human resources. African mining businesses need to be globally competitive and establish sustainable, world class organisations and communities. Kaizen Institute South Africa can play a role in this process.
Kaizen methodology provides a framework that utilises continuous improvement (CI) which is applied to critical processes that are integral to the goals of the business, ensuring that the business strategy can be implemented effectively.
The Kaizen approach originated in Japan nearly 40 years ago after Masaaki Imai had identified one of the reasons for that country’s industrial successes. His book, “Kaizen: The Key to Japan’s Competitive Success” led to Kaizen becoming an everyday term used in businesses across the globe.
Today, the Kaizen Institute is represented in more than 45 countries, including South Africa, where it has a strong foothold in mineral processing.
Kaizen Institute South Africa MD Mbuso Nkosi explains, “In the mining sector, specifically in mineral processing, we work to optimise various operations or implement programmes to allow them to work more cost-effectively.
One key success factor of the Kaizen methodology in South African has been to manage the culture change and behaviour from the top of the organization downwards. “Everyone in the company needs to buy into the vision and goals of the company. This means we involve employees at every level, from operators in the stopes right up to management,” says Nkosi. “We have found that employees on the floor and on the stopes are the ones who really own the project.
They not only drive change, but their targets should be aligned to the company’s goals. They need to be aware that the work they do every day contributes to the overall well-being of the company. After many years, they know the operation like the back of their hands.
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These are the people that can identify potential pitfalls or challenges and they should be empowered to influence decision-making. This means that our methodology, by interacting with them and including them when we need to find solutions, empowers them.”
The Kaizen method is holistic and seeks long- and not short-term solutions. “As consultants we look at the entire value stream, we touch every area of the business and involve and empower all people within the organisation, not just management. Critically, the process can never be a short-term solution,” Nkosi says.
How does such a major shift in mindset take place in an organization? “Both top management and the workers need to change the way they operate and think and workers must be comfortable suggesting meaningful solutions. This in turn builds a culture of ownership. In many mines, unfortunately, these key opinions are ignored. By nurturing the Kaizen culture, a mining company can improve its safety record significantly and workers will feel that they are part of the solution, not the problem,” explains Nkosi.
Unions are involved from the start and experience at Kaizen Institute has shown that they invariably buy into the process, because they are aware that the programmes ultimately benefit their members.
The success of the Kaizen method across the world has resulted in the concept being copied, usually without success. Nkosi says, “Due to ‘knock-off’ imitators around the world, the true power of Kaizen is still not fully harnessed by many businesses. In fact, most organisations have not yet grasped the depth of the real Kaizen methodology and have not aligned their entire corporate activities holistically.”
There are many reports available, both local and international, that attest to the success of the Kaizen method in mining. “We can supply potential clients with case studies of successes around the world. These come from our own experiences here in the platinum industry, amongst others, right across to Canada, where the client was facing rising costs of delivering facilities associated with Steam Assisted Gravity Drainage (SAGD) well pads. Over 200 ideas were put forward by the functional teams and this resulted in a reduction of Lead Time in excess of 25%, eliminating 4 weeks of schedule per well pad, saving over $3M per well pad.”
In the rapidly-evolving and increasingly competitive world of mining, South African companies need to remain nimble and open to change. The Kaizen approach offers them the chance to increase efficiencies and reduce costs while simultaneously enhancing the mood and culture amongst employees – from the CEO to the operator on the front line.
