Unlimited productivity – your operation can achieve it

Introduction Only a person fresh from an information vacuum could not know the status of this nation's economy. The inability of the US to compete in the world marketplace is manifested in many industries, from shoes to computer chips, from cars to copper. What industry will next fall prey to world competition? Perhaps the question should be, what insustry will next fall prey to declining productivity? American industry is being forced into an era where the focus must be on productivity, quality, cost control, and competition in the world marketplace. It is approaching a change that could rival the American Industrial Revolution. The future of the US is bright only if it can increase productivity by trying different and new ways to manage its businesses and people. Unlike the easy successes during the 60s and 70s, success in the decades ahead will depend on an ability to compete in the world market. Any operation can achieve unlimited productivity by developing the resources within its employees. As an industry, mining has harvested the earth's resources. As an industry in trouble, it now has to learn to tap human resources to release the energy and creativity in each person. Recently, I worked with a mining operation to reopen a mine and implement a different management approach. The extensive changes resulted in a 50% reduction in cash cost of producing silver (from $0.40 to $0.19/g or from $12.50 to $6 per oz). Thus, an unprofitable mine became an attractive business venture without technological changes or significant capital infusion. The operation is union-free, in spite of being in a highly unionized area. The mine implemented a real productivity improvement process called "gain-sharing." Employees now recognize their individual success is tied to the success of the business. They recognize the day of the free lunch is over for mining employees. This paper will explore three areas related to productivity: • some of the unspoken "whys" of the mining industry's paralysis and how management has caused unproductiveness in mining operations; • major components of a productivity improvement process; and • characteristics common to companies with successful productivity plans. Unspoken whys When things go wrong, everyone tends to point a finger at someone, anyone. This industry has blamed every conceivable person, corporate group, government agency, foreign government, and private group for its failures. The fault finger will not work anymore. Nobody is listening. It is a characteristic of winners in management to assume responsibility for less than acceptable performance. Excellent people tend to blame others less for problems. Everyone involved in mining should shoulder part of the blame for the industry's illness. Is the problem low prices or our high operating costs? To regain our status in the world marketplace and increase our productivity, we need to painfully and honestly talk about our mistakes.