Managing variability is one of the most significant challenges in mineral processing. Stability underpins operational excellence by driving efficiency, safety, and productivity. Yet, mining operations are inherently variable, with fluctuations in ore grades, equipment performance, and human decision-making contributing to inefficiencies. Addressing these challenges requires a proactive and systematic approach, where advanced digital tools play a central role in stabilising processes and unlocking production potential.
This updated article explores the nature of variability in mining, its impact on production, and how advanced digital tools can help operations achieve consistent and measurable improvements.
The Link between Variability and Production
Variability is the silent disruptor of productivity. Processes with minimal variability operate closer to their optimal capacity, reducing inefficiencies and costs. Conversely, uncontrolled variability leads to downtime, increased waste, and missed production targets.
A 2023 Deloitte report revealed that reducing process variability by just 5% can drive productivity improvements of up to 15%. This underscores the importance of stabilising operations to achieve peak performance.
Key Drivers of Variability
To manage variability effectively, it is essential to understand its root causes. In mining operations, these typically include:
- Ore Characteristics:
Natural variability in ore grade, mineralogy, moisture content, and impurities.
- Equipment Performance:
Differences in equipment reliability, wear rates, and maintenance schedules create bottlenecks.
- Human Factors:
Operator skill levels, decision-making inconsistencies, and fatigue.
- Data Silos:
Fragmented systems and unstructured data hinder the ability to detect and respond to variability in real-time.
Each factor contributes to operational instability, reducing overall equipment effectiveness (OEE) and increasing costs.
Let’s take a quick step sideways to consider OEE
The operational equipment effectiveness (OEE) model is one tool for helping us understand these instability drivers and manage variability.
OEE is the ratio of Fully Productive Time to Planned Production Time. It is calculated as the product of its three constituent factors:
OEE = Availability × Performance × Quality
The nature of this calculation makes achieving a high OEE score quite challenging. For example, if all three factors are 90%, the resultant OEE will only be 73%.
In practice, the generally accepted best-practice goals for each factor are quite different, as shown in the image below. Note that these figures apply to discrete manufacturing (as opposed to process industries).
While manufacturing industries aim for a benchmark OEE of 85% [*1], the mining sector generally trails behind. A 2022 McKinsey report notes that mining OEE averages 40–60%, primarily due to input variability and operational inefficiencies.
*1 In his 1984 book, Introduction to TPM, Seiichi Nakajima introduced a “world-class” minimum OEE goal of 85%. Based on his practical experience, he defined these numbers as minimums for which companies should strive.
EY’s research [*2] further strengthens this argument. Their framework for improving mining productivity identifies managing variability as the cornerstone for bridging the gap between mining and other sectors.
This involves three key approaches:
- Digital Maturity: Leveraging data analytics and automation for predictive capabilities.
- System Thinking: Focusing on interconnected systems rather than isolated problems.
- Workforce Engagement: Empowering teams with actionable insights and collaborative tools.
*2 Paul Mitchell: Can mining decode the opportunities of the future?
While challenges such as natural ore variability and real-time measurement limitations persist, adopting these approaches paves the way for significant gains.
Now back to the broader topic of managing variability
Digital Tools as Enablers for Variability Management
Modern mining operations must embrace digital maturity to tackle variability effectively. Digital tools provide the means to monitor, analyse, and manage real-time variability, empowering teams to address challenges proactively.
Here’s how advanced digital tools make a measurable difference:
- Real-Time Variability Detection:
Sophisticated sensors and control systems can detect fluctuations in throughput, ore grade, and equipment performance, offering immediate insights.
- Predictive Analytics:
Algorithms analyse historical and real-time data to forecast variability trends and recommend preventive actions, such as adjusting feed rates or scheduling maintenance.
- Centralised Data Integration:
Digital platforms consolidate data from disparate sources, breaking down silos and providing a single source of truth for decision-making.
- Collaboration and Communication:
Cloud-based tools enable multi-disciplinary teams to collaborate across shifts and locations in real-time, ensuring collective responses to variability events.
- Automation of Reporting and Processes:
Digital systems streamline reporting and automate routine tasks, allowing operators to focus on high-value activities such as optimisation and planning.
Key Considerations when evaluating Digital Tools
Not all digital tools are created equal. When assessing solutions for managing variability, operational managers should ask the following questions:
- Does the tool provide real-time variability detection and actionable insights?
- Can it predict variability trends and support proactive decision-making?
- Is it adaptable and user-configurable to suit specific operational needs?
- Does it integrate seamlessly with existing systems, such as control systems and data historians?
- Does it enable collaboration across teams and locations?
Selecting tools that meet these criteria ensures that variability management becomes a continuous and iterative process rather than a reactive one
A Holistic Approach to Managing Variability
Advanced digital tools are a critical component of variability management, but they must be part of a broader, holistic strategy that incorporates people and processes.
This involves:
- Enhancing Workforce Engagement: Equip operators and engineers with actionable insights and empower them to make informed decisions.
- System Thinking: Focus on the interconnections between processes, ensuring that improvements in one area do not inadvertently cause variability elsewhere.
- Continuous Improvement: Establish feedback loops to evaluate the effectiveness of variability management strategies and refine them over time.
Unlocking the Potential of Digital Maturity
Mining operations that invest in digital maturity are better equipped to manage variability and achieve operational excellence. By implementing advanced tools, operations can reduce costs, improve safety, and increase throughput.
Digital maturity is not a one-time effort but a journey that requires ongoing investment in technology, training, and process optimisation.
What’s Next?
Variability is inevitable in mineral processing, but it doesn’t have to be a roadblock. By leveraging advanced digital tools and adopting a holistic approach to variability management, mining operations can transform variability from a challenge into an opportunity for optimisation.
If you’re ready to explore how digital maturity can help you stabilise processes and unlock new levels of performance, take the first step today. Assess your current systems, identify areas for improvement, and develop a tailored roadmap to build resilience and achieve operational excellence. Contact us to begin your digital maturity journey.
Check out these related articles
The Digital Maturity Model for MMM
Digital transformation is reshaping the mining industry, but navigating this complex process requires a clear…
Digital Transformation: Roadmaps as a proven methodology for change
In this article, part six of our 6-part Digital Transformation Series, we look at digital…
Digital transformation is not just about technology
In this article, part five of our 6-part Digital Transformation Series, we examine a key…
