Developing And Implementing An Enterprise Reliability Strategy (ERS) In Mining Operations

In the last few years major industrial companies have begun to realize the importance of Reliability as an enterprise strategy that, properly implemented, will improve financial performance. Typical results of an effective Enterprise Reliability Strategy include a 20% -50% reduction in maintenance cost accompanied by a 5% - 10%increase in real production capacity, with no capital investment in production equipment. One factor fueling the race to acquire and implement enterprise reliability is the pressure for companies to be increasingly cost-effective and competitive in global markets. In a recent study, Asset Productivity: The Next Wave, the Boston Consulting Group (BCG)stated that, “In order to compete for funds, companies must offer investor returns that are competitive with other opportunities. Alternative investments such as dot-com and others with non-traditional business models have raised the bar.” (APDF version of the study can be downloaded at www.bcg.com). BCG views asset productivity as the most powerful mechanism for increasing shareholder return. The author believes that the most effective way to increase Fixed Asset Productivity is to maximize asset utilization by increasing the Reliability of the Assets and the associated processes. Developing and implementing an ERS requires significant effort and knowledge. Most companies have difficulty finding a sufficient supply of these valuable commodities to implement an ERS Program internally. Many companies also struggle with figuring out how to get started and what direction to proceed.