It is interesting to notice that distressed and start-up businesses will display similar signs of trouble. From management style, diversification, debt, weak financial position, poor operating controls, market lag to sales, they have a lot in common.
During the current depressed commodity cycle, several mining companies had to resort to crisis management to stay afloat. Aforesaid management style which business turn-around specialists are very much accustomed to.
Expose yourself to twenty years of turn-around challenges in a broad range of commodities with dissimilar challenges in a variety of disciplines and you become an expert in crisis management.
Thus, if a stressed business in crisis would resort to a turn-around specialist, it makes perfect sense that they would do the same when start-ups begin to fail, which they do. But why wait or take the risk of a potential start-up failure and how can this be avoided.
Well first of all, look for a turn-around specialist company that offers outsourced start-up mine management and avoid the high costs associated with operations improvement / turnaround when failure during start-up occurs.
An outsourced start-up mine management specialist company equip over the skills, experience, systems and controls that are geared for crisis management. The following are some of the reasons why outsourced start-up mine management companies achieve the desired results. For any start-up project the aforesaid specialists:
▫ are suitably experienced to source fit for purpose personnel who are skilled for the position appointed.
▫ employ high caliber and well rounded expertise to manage aforesaid staff throughout the start-up contract.
▫ are fully conversant with training of mine staff and providing them with the necessary guidance and tools to become self-sustained.
▫ internally equip over all the necessary systems and controls that have been developed specifically for turn-around processes.
▫ react rapidly in any crisis situation, are accustomed to dispute resolutions and are risk managers.
▫ are not burdened with laborious administrative procedures which often delay critical decisions, procurement, buying and supplies.
▫ are accustomed to developing systems, SOP’s and COP’s to suit the prevailing conditions.
▫ treat start-ups similar to turn-arounds, as a project with clear definition of SoW, proper scheduling of activities with milestones, ▫ identify critical paths, plan and forecast the project in accordance with the prescribed budget.
▫ manage and track progress and tightly control execution of start-up activities.
▫ carry out procurement internally, draft enquiries as well as contract agreements without having to incur the expense of a legal process.
▫ are cost saving and improvement focused and maintain tight controls over expenditure that is continuously tracked against budgets.
▫ have vast experience in managing contractors, including but not limited to open-pit and infra-structure operations, measurement, certification, dispute resolutions, contract agreements and procurement.
▫ have the knowledge and experience to turn to account in the shortest possible time in order to improve the revenue stream at the earliest.
▫ following hand-over, remain available to maintain and or address any problem that might arise during steady state mining.
▫ when called upon post start-up completion, have in-depth knowledge and experience of the mine and know the staff they sourced and trained during start-up of the mine.