Value Management

The senior management of a large mineral processing facility were trying to grapple with the challenge of changing the logistics of transportation
This involved a significant change in the nature of truck fleet configurations and road usage patterns in a remote part ofAustralia
The customer wanted some modeling implemented so they could understand the impact of such changes of logistics management

A detailed simulation of existing volume flows of in inbound and outbound logistics was undertaken
Inbound and outbound logistics utilisation rates were integrated into the model (ie utilisation of trucks and truck configurations)
The model pointed to a deeper challenge that was beyond the scope of the initial terms of reference

The customer agreed to redefine the problem and so a complete value management model was subsequently development
This approach required a holistic approach to analysing all processes involved with adding value, including inbound raw materials and outbound logistics finished product
Significant production bottlenecks were identified in the mineral processing facility and new approaches were identified to address production workflow activities and critical pathways
Completely new paradigms of logistics management were also scoped as part of the project so as to address the issue of reducing the time of inventory in transit and increase production throughput flow rates

A comprehensive report prepared to summarise key issues arising from the project

New approaches to managing production bottlenecks were identified
The project resulted in the customer understanding logistics as part of the entire value chain and not as discrete inputs into the value chain system
The customer came to understand the importance of managing value across the full spectrum of workflow management