Abstract
M.Phil. (Engineering Management)
The mining industry, especially in Southern Africa, is experiencing significant uncertainty and volatility,
and it has become important for mining organizations to find ways to reduce cost and improve
operational efficiency. The Lean management principle mainly aims to reduce waste specific to
resources, time and cost and has slowly been adapted into the mining industry.
The main objective of the study was to evaluate the impact of applying the Lean principle in a mining
company using simulation modeling. The study commences with a literature review so as to explore
Lean and its recent application in mining. The study narrowed to diamond production. The literature
study discussed simulation modeling and its application to Lean. The literature study finally reflected
on the gaps in the current literature, thereby justifying the study.
The researcher utilized a case study to identify and examine the production flow that exists on a
diamond production mine set up. In this study, the key target was to optimize cycle times and observe
the impact it has on the outputs. The diamond production value chain was represented by a current
state Value Stream Map (VSM), describing the products’ movement through the production line and
the resources utilized. The researcher collected sample production and operational data from each
the process unit identified, utilizing direct observation of operations in the production chain and
interviewing mine staff and on-site. A current state VSM was constructed with the help of the mine
staff and the sample data collected. The Value Stream Map and the sample data was then used as a
basis for the configuration of the simulation model using Anylogic 7.3.2 Personal Learning Edition. The
outputs of the simulation model are part of the key performance indicators of the current diamond
mining operation.
The study conducted a test to determine the most significant contributing variables. The study
conducted a simulation experiment, adjusting the variables to minimum one at a time while the other
variables remained at current cycle time. The data used for the test is the current and target (minimum)
cycle times for each process unit. A variance analysis was then conducted to determine the variables
that provide a significant change in the simulation outputs. The study used the significant variables to
optimize the cycle times and reduce the lead time. The study also presents the impact of the Lean
simulation optimization experiment on the plant throughput. The results from the optimization
experiment show that if Lean is correctly implemented to reduce cycle times, the key performance
indicators as represented by the simulation outputs will be improved.
The study contributes to the understanding of the link between the Lean principle and efficient
execution of mining operations. The study also illustrates simulation modeling as a tool to compliment...