Unlock the Potential of Digital Transformation with Lean Management
Phase One: Resetting the Basics
Minsur, a Peruvian mining company, embarked on a transformation journey. With over 45 years of experience, they had to optimize operations, invest in mine extensions, and set up basic management systems. This phase took two to three years and laid the foundation for future growth. By the end of 2015 or 2016, Minsur had a restructured company with strong management systems, a focus on safety, cost reduction, and productivity.They were the second-largest producer of refined tin, the largest producer of tantalum, and a significant producer of other metals. This phase set the stage for the next phase of growth.
Phase Two: Implementing Growth Projects
By the end of 2018, Minsur approved a $1.8 billion capital investment project for a new copper mine. This was a significant step in their growth trajectory, demonstrating their ability to move forward and expand their operations.The company was now ready to take on new challenges and continue their upward trajectory.
Cultural Transformation: Empowering from the Bottom Up
As Minsur grew, they realized the need for a cultural transformation. The old mining culture was top-down and hierarchical, and they wanted to flip the empowerment within the company.They started phase three, a significant cultural transformation program focused on implementing lean management practices. This was not a project with a start and end date but a permanent change in the way the company operated.
Lean Management Principles in Action
Lean management principles played a crucial role in Minsur's transformation. One of the main principles is leading with humility, where leaders ask teams the right questions instead of providing solutions. Another principle is seeking perfection, always striving for more growth and productivity.Embracing scientific thinking with the use of technology, such as artificial intelligence models, helped make decisions based on data rather than gut feelings. Focusing on processes systematically meant finding solutions in the process and generalizing them to other areas of the organization.
Changes at the Pisco Smelter
At the Pisco smelter, the previous general manager believed there was no way to increase throughput. However, the new manager took on the challenge and empowered the operators.Through the lean methodology, they identified the main bottlenecks and implemented operational efficiency initiatives, increasing production by 25 percent in a short time. This shift from an autocratic culture to a bottom-up approach was remarkable and led to a virtuous cycle of continuous improvement.
Long-Term Effects of the Change
The long-term effects of the cultural transformation were profound. Minsur now has an organization that doesn't fear new challenges and is constantly striving for more. People feel proud of their achievements and are empowered to drive change.For example, the unit manager at Pisco presented his next target to the executive committee, showing a bottom-up approach that is rare in hierarchical industries.
People and Technology: Building a Positive Cycle
Embracing new technologies requires an empowered ecosystem. Minsur has moved decision-making away from operators and towards a system of multifunctional experts.Technology, such as data analytics and machine learning, has augmented operators and supervisors instead of replacing them. Cross-functional teams work together to solve complex problems and find new solutions.
Advice for Other Companies
For companies considering similar changes through lean management and next-generation operational excellence, Juan Luis Kruger advises leading from the top. Leaders must be committed and walk the talk.Ferran Pujol adds that taking the time to think about culture, methodology, and impact is crucial. Visiting successful companies like Minsur can provide inspiration and help determine what choices apply.