Enabling Technology for Integrated Operations Table of Contents

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Enabling Technology for Integrated Operations Table of Contents Enabling technology for integrated operations Table of contents Introduction 1 The impact of technology on the IO journey 3 Overcoming the challenges 4 Challenge one: gaining stakeholder commitment 5 Challenge two: designing, implementing and integrating multiple technologies 7 Challenge three: addressing business process and behavioural changes 8 Conquering complexity 10 Contacts 12 Enabling technology for integrated operations | Introduction Introduction At a time when declining ore grades and operating efficiencies continue to challenge mining concerns, it has perhaps never been more important to make the right decision at the right time. Yet, this has become more difficult to do. For many companies, the perpetuation of organizational, functional, and technological silos remains a major barrier to responding effectively and efficiently in a way that optimizes overall business value. Leading mining organizations are addressing these challenges by adopting integrated operations (IO) philosophies, approaches and processes. At its core, IO is about designing and embedding mechanisms and processes that drive effective trade-off decisions to determine what is best for the whole business, in a timeframe that aligns with the intended value to be achieved. This typically involves rethinking operating models and making significant investments in data governance, integration, and visualization, and supporting upgrades to technological infrastructure and applications. An integrated operations initiative aims to take a more holistic view of the business, with a level of integration that is ultimately a function of organizational maturity, readiness for integration, and the value at stake. The value of IO has proven to be substantial. Organizations have seen significant benefits, including: Increased production Reduced unit cost Improved safety Decreased downtimes Increased productivity Successfully delivering on IO is no easy undertaking as it requires focusing on four key pillars: people and culture, workplace design, organizational processes, and technology (see Figure 1). These pillars are discussed in more detail in the 2021 edition of Deloitte’s global mining report, Tracking the trends, in “Trend 7: The path towards integrated operations.” This report focuses on the technology pillar, since a move to IO may require new or improved infrastructure as well as applications to enable information transfer, and decision-making that supports the value the business is looking to unlock. We also explore the main impacts technology has on the path to integration and outline some of the frequent challenges encountered when embedding technology to enable IO. 1 Enabling technology for integrated operations | Introduction Figure1: The four pillars of integrated operations People and culture Workplace design • Leadership and • Facility location team culture • facility design • Organizational structure • Workplace fit-out • Role and team definition • Floor design • Decision rights and RASCI* • Ergonomics and • Escalation protocols environment • Training and competency Integrated operations Process Technology • Operations strategy • Data collection • Operating modes • technology Infrastructure • Rhythms and standards • IT/OT requirements • KPIs and performance • Network requirements targets • Advanced analytics • Continuous improvement capabilities Source: Deloitte analysis This marks the sixth time Deloitte Canada artificial intelligence and wearables have has collaborated with NORCAT and already advanced and improved operations. NORCAT-affiliated companies to dive into In this report, we address the major trend of an industry challenge, drawing on the integrated operations, which both Deloitte experience and innovation coming from and NORCAT have observed in the market, the NORCAT Underground Centre and the and we aim to provide practical guidance leading IO thinking that Deloitte is continually on how best to manage technology, based developing. Previous reports in this series on the experiences of those who have highlighted how technologies such as successfully navigated IO transformations. 2 Enabling technology for integrated operations | The impact of technology on the IO journey The impact of technology on the IO journey In this increasingly digital and connected Investment in technology typically involves 3. Increasing speed of action and/or world, few will argue that investment in three major areas: improving safety. Technology can be enabling technology is often the difference used to increase the speed and safety between sustaining an organization and 1. Creating situational awareness. The of an activity, which not only ensures succumbing to operating pressures. For the biggest impediment to organizational more stable operations but also removes mining industry, significant investment in performance today is the ability to personnel from harm’s way and de-risks technology is required in three key domains: constantly be aware when a deviation the activity. For example, take moving from plan occurs, and then knowing from manual rock-breakers in ore-bins • Intelligent operations: Improving and what can or should be done to address to automatic and/or remote operation. optimizing operational process through the deviation. Creating situational Since rock-breaking is only required automation, digitization, and robotics. awareness – a state of knowing what intermittently, operations typically • Nerve centres: Bringing together data is currently occurring, what needs don’t use the equipment frequently; from across the value chain and integrating monitoring, knowing when a decision when rock-breaking is required, there’s data from information technology (IT) and is required, and then formulating an usually a delay until someone can operational technology (OT) in order to informed plan of action – depends on be allocated to the machine. Using a make real-time decisions. real-time reports, dashboards, alerts, remote rock-breaker, however, means radio announcements, etc., that only faster responses and better utilization • Intelligent enterprise: Improving and technology can provide. of operators. When coupled with optimizing supporting processes through pressure sensors in the bin, there’s integration, automation, and digitization. 2. Enabling decision automation and also a reduced likelihood of damaging support. Optimum integration at the bin liners because automatic shut-off At the same time, technology has never interfaces happens when human-based logic can be built into the remote been simply a matter of “plug and play.” decision-making is either supported equipment. These technologies also Successful deployment of technology in or eliminated. Organizations that enhance safety by removing people from IO starts with identifying which decisions code decision logic into their control hazardous situations. need to be made, and then designing the system, fleet management system, or underlying architecture to support decision other expert system realize significant makers with the right information to make gains by letting it run and recoding the optimal choices. Ultimately, the rapid system when changes are required. evolution of technology may remove much Using decision logic and automating the of the need for a human-based decision to decision and action processes supports be made in the first place, with algorithm- the application of consistent, predictable, based automation enabling next-level and timely decision-making. Alternatively, response capability. automation can be developed for decision support where personnel have the authority to accept or reject recommendations given their own experience, knowledge, and insight. 3 Enabling technology for integrated operations | Overcoming the challenges Overcoming the challenges Moving toward integrated operations requires changes in the way decisions are made, how resources are managed, what skills are required, and how value is created. Although it should never be technology-led, technology enablement is critical to achieving the desired level and speed of integrating data and information, which in turn enable the desired outcomes. Drawing on interviews conducted with industry leaders associated with the NORCAT Underground Centre, we explore these challenges in detail and look at how companies are successfully overcoming them. 4 Enabling technology for integrated operations | Overcoming the challenges The first challenge starts with creating and selling a competitive value proposition to senior leadership. With the mining industry continuing to come under cost pressure, expenditures to complete large transformational projects becomes increasingly difficult and, given the scope and scale of IO enablement, it’s critical to build and communicate a strong and competitive value proposition. To complicate matters, it often proves difficult to clearly tie value back to the large investment often required for foundational enabling technologies like network infrastructure, meaning these investments need to be considered differently from other value- based ones. Creating and selling a competitive value proposition requires a complete understanding of program goals and makes use of information and insight from all Challenge one stakeholders and partners in the broader operating context, including: Gaining stakeholder commitment • Aligning all stakeholders with the vision, value, and use of a solution • Identifying if there is adequate motivation to execute the project • Striking a balance between the
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