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THE IMPACT OF LEAN ON THE MINING INDUSTRY: A SIMULATION EVALUATION
APPROACH

A Minor Dissertation Submitted in Partial Fulfilment of the Degree of

MAGISTER PHILOSOPHIAE

in

ENGINEERING MANAGEMENT

at the

FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT

of the

UNIVERSITY of JOHANNESBURG

by

SHINGAI AGGREY MAUNZAGONA

30 November 2016

SUPERVISOR: DR ARNESH TELUKDARIE

 ACKNOWLEDGEMENTS

To my supervisor, Dr. Arnesh Telukdarie, I would like to extend my heartfelt appreciation for the
guidance and input in this minor dissertation. It is because of your deep industrial and academic
experience that I could produce a document of high quality.

To my parents, Mr. Aggrey Maunzagona and Mrs. Moleen Maunzagona, I would like to express my
deepest gratitude for your moral and material support. Even in the tough times, you made sure that
your support is always available. To my two sisters Mufaro and Tanyaradzwa, thank you for your
support and prayers.

Special mention to my wife-to-be Grace Makoni. Thank you for being my best friend and my motivation
to succeed.

To the members of the Faculty of Engineering and The Built Environment of the University of
Johannesburg, thank you for providing me with assistance whenever I required it. To the Postgraduate
School of Engineering Management staff, thank you so much for nurturing me until I was able to
conduct this research.

To the management and staff of the case study diamond mine, thank you for allowing me to access
your operations especially considering how sensitive such an operation is. If it weren't for
confidentiality considerations, I would have mentioned you by name.

All the glory goes to the Almighty God for being the perfect strength in my times of perfect weakness.

i
 DECLARATION

I certify that the minor dissertation submitted by me for the degree, Magister Philosophiae in
Engineering Management at the University of Johannesburg is my independent work and has not been
submitted by me for a degree at another university.

SHINGAI AGGREY MAUNZAGONA

ii
 ABSTRACT

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

iii
Lean evaluation. The study provides specific recommendations for the case study diamond mine,
industry and academia. The researcher reflects on the strengths and weaknesses of the study and
provides suggestions for future study.

iv
 TABLE OF CONTENTS

ACKNOWLEDGEMENTS .................................................................................................................................. i
DECLARATION .................................................................................................................................................. ii
ABSTRACT ........................................................................................................................................................ iii
LIST OF TABLES ............................................................................................................................................. vii
LIST OF FIGURES ......................................................................................................................................... viii
LIST OF ACRONYMS ...................................................................................................................................... ix
CHAPTER 1: INTRODUCTION ....................................................................................................................... 1
1.1 Introduction ......................................................................................................................................... 1
1.2 Problem statement ............................................................................................................................ 2
1.3 Rationale for the study ...................................................................................................................... 2
1.4 Research design ................................................................................................................................ 3
1.5 Importance of the research to the Engineering Management discipline ................................... 4
1.6 Summary............................................................................................................................................. 4
CHAPTER 2: LITERATURE REVIEW ............................................................................................................ 6
2.1 Introduction............................................................................................................................................... 6
2.2 Synopsis of the Lean management principle ...................................................................................... 6
2.3 The history of Lean ................................................................................................................................. 8
2.4 Key Lean Tools ...................................................................................................................................... 10
2.5 The mining industry ............................................................................................................................... 16
2.6 Simulation modeling ........................................................................................................................ 25
2.7 Synopsis of the outputs for the simulation model for the current study .................................. 32
2.8 Gaps in the current level of knowledge ........................................................................................ 33
2.9 Conclusion ........................................................................................................................................ 34
CHAPTER 3: RESEARCH DESIGN ............................................................................................................. 35
3.1 Introduction............................................................................................................................................. 35
3.2 Sample data Collection......................................................................................................................... 36
3.3 Current State Value Stream Mapping (VSM) .................................................................................... 36
3.6 Proposed variables.......................................................................................................................... 37
3.7 Outputs under investigation ........................................................................................................... 37
3.6 Simulation Modeling.............................................................................................................................. 38

v
 3.7 Quality of the study ............................................................................................................................... 42
3.8 Conclusion .............................................................................................................................................. 43
CHAPTER 4: RESULTS AND DISCUSSIONS ........................................................................................... 44
Introduction ................................................................................................................................................... 44
4.2 Sample data collected in each process unit ...................................................................................... 44
4.3 Current state Value Stream Map ........................................................................................................ 47
4.4 Optimization experiment results .......................................................................................................... 49
4.5 Graphical Illustration of simulation experiment ................................................................................. 52
4.6 Overall Analysis of results .................................................................................................................... 57
4.7 Conclusion .............................................................................................................................................. 58
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS ................................................................... 59
5.1 Introduction ....................................................................................................................................... 59
5.2 Overview of the study and objectives ........................................................................................... 59
5.3 Contributions to the body of Knowledge ...................................................................................... 60
5.4 Recommendations .......................................................................................................................... 60
5.5 Strengths and limitations of the study .......................................................................................... 62
REFERENCES ................................................................................................................................................. 64

vi
 LIST OF TABLES

Table 1: Mining stages ......................................................................................................................... 16

Table 2: Comparison between the mining and automotive industries ................................................ 22

Table 3: Annualized achievements in the carbon blake furnace from 2004 to 2006 .......................... 25

Table 4: The role of DES In Reducing Waste...................................................................................... 32

Table 5: Proposed variables for the study ........................................................................................... 37

Table 6: Study outputs ......................................................................................................................... 38

Table 7: Simulation constraints............................................................................................................ 40

Table 8: Proposed simulation experiment for determining the most significant variables .................. 41

Table 9: Proposed iterations for the simulation experiment ................................................................ 42

Table 10: Drilling and blasting data ..................................................................................................... 45

Table 11: Loading and hauling data .................................................................................................... 45

Table 12: Crushing and screening plant data ...................................................................................... 46

Table 13: DMS plant data .................................................................................................................... 46

Table 14: Recovery plant data ............................................................................................................. 47

Table 15: Simulation experiment results for determining the most significant variables .................... 50

Table 16: Variance analysis table for testing variable significance ..................................................... 51

Table 17: Simulation optimization experiment results ......................................................................... 52

Table 18: Suggested Lean tools to reduce cycle times ....................................................................... 62

vii
 LIST OF FIGURES

Figure 1: TPS House (Liker, 2004) ............................................................................................. 9

Figure 2: Example of a Value Stream Map for a mineral processing plant (Viljoen, 2015) .........11

Figure 3: The 5S process (Liker & Meier, 2006) ........................................................................12

Figure 4: The S-Curve of incremental improvement (Nicholas, 2011) .......................................15

Figure 5: Schematic of the crushing and screening plant of the case study diamond mine .......18

Figure 6: Schematic of a simplified DMS plant at the case study diamond mine .......................19

Figure 7: Schematic of the recovery plant at the case study diamond mine ..............................20

Figure 8: Rough diamonds global prices and forecast per carat (Paulzimnisky.com, 2016) ......21

Figure 9: Process steps in the simulation model .......................................................................39

Figure 10: Simulation modeling stages in Anylogic ...................................................................40

Figure 11: Current state Value Stream Map for the production chain of the diamond ................49

Figure 12: Mining cycle time from the simulation optimization experiment.................................53

Figure 13: DMS cycle time outputs from the simulation optimization experiment.......................54

Figure 14: DMS throughput outputs from the simulation optimization experiment .....................55

Figure 15: Recovery cycle time outputs from the simulation optimization experiment ...............56

Figure 16: Lead time outputs from the simulation optimization experiment................................57

viii
 LIST OF ACRONYMS

ABM Agent Based Modelling

ADT Articulated Dump Truck
DES Discrete Event Simulation
DMS Dense Media Separation
IDC Industrial Development Corporation
JIPM Japan Institute of Plant Maintenance
JIT Just In Time
PLE Personal Learning Edition
QCO Quick Change Over
SMED Single Minute Exchange of Dies
T/H Tons Per Hour
TPM Total Productive Maintenance
TPS Toyota Production System
VSM Value Stream Map
WIP Work In Process

ix
 CHAPTER 1: INTRODUCTION

1.1 Introduction

The mining sector plays a very important role in the African economies, particularly through its
contribution to foreign exchange earnings generation. It also contributes regarding value addition and
employment creation (IDC, 2013).

The mining industry’s profitability has reduced significantly due to rising costs emanating from social
and environmental demands for sustainable development (Wijaya, Kumar & Kumar, 2009). Matters
pertaining to the environment coupled with corporate social responsibility, require the mining
companies to invest money significantly in fulfilling that mandate.

The downtrend of mineral prices which reduces the profitability of mining companies also has a
damaging effect on economies dependent on mining (Wills, 2006). Due to these challenges, It is
imperative that mining organizations increase operational efficiency and reduce production costs so
as to survive and remain profitable. Companies are increasingly being forced to explore alternative
solutions to increase the viability of doing business (Gamme & Aschehoug, 2014).

Various industries have adopted the Lean principle as applied in the automotive industry, particularly
the Toyota Production System (TPS). The correct implementation of Lean has brought about waste
elimination and increased productivity in industry and the mining companies that have looked upon its
adoption. Lean has proven to be an effective tool to minimize the mentioned challenges and improve
on process efficiency in the mining sector. Increased understanding of the Lean principle will help
management in the mining companies to correctly implement it so as to realize the intended benefits.

It is important for the mining companies to be able to assess and validate the impact of applying the
Lean principle. Simulation modeling has emerged as a tool to analyze and debug complexities that
arise in the optimization of industrial and business processes.

1
1.2 Problem statement

If the above-mentioned challenges facing mining companies are not countered with effective tools and
strategies to mitigate them, there will be continued damage in the economies dependent on mining.

Various literature asserts that the Lean management principle has various benefits in various
industries but there are a few papers that explore the Lean principle in the mining industry. A few
authors have managed to create a model that verifies the benefits of implementing Lean focusing on
the mining industry. It is against this background that the following research questions are presented:

1.2.1 Primary research objective

The primary research objective is to evaluate the impact of applying the Lean principle in a mining
company using simulation modeling

Research Question

The study aims to answer the following critical questions:

1. What effect does the Lean management principle have on mining operations?

2. How can simulation modeling be used as a tool for lean evaluation scenarios?

1.3 Rationale for the study

Lean has proven to be one of the most effective tools in the reduction of waste and increase in
productivity from the car manufacturing sector to other industries. Falling commodity prices coupled
with other reasons discussed in this study have significantly affected the mining sector. Some
companies have ceased operations as the business will no longer be viable. The mining industry has
slowly adopted the Lean management model. If the research proves that Lean will positively impact
the mining companies, then it can help them to make an informed decision in the adaptation of the
model. The above-discussed reasons are a motivation for this study as it explores on the Lean
principle and brings an understanding to mining industry professionals and researchers.

There is still a gap regarding literature which relates to Lean as applied to the mining industry.
Therefore the study provides more insights to the body of knowledge.

2
The research takes a systems approach to validate data and simulation modeling is utilized. Simulation
modeling provides an alternative for optimizing not only mining operations but business systems as a
whole.

1.4 Research design

The researcher utilized a case study of a diamond mining set up. A simulation approach was utilized
to validate findings.

1.4.1 Research Approach

A case study was utilized to identify and examine the production flow that exists on a diamond
production 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 set up 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 historical production records. 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 were 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 provided statistically significant change in the simulation outputs. The study used the statistically
significant variables to optimize the cycle times and reduce the lead time and increase plant
throughput.

1.4.2 Data Collection Procedures

The researcher developed a data collection sheet for the collection of data on the site. The data was
obtained from historical production records, manufacturer specifications, operator estimates,

3
management estimates and direct observations. Follow-ups were conducted in the form of telephone
calls to relevant mine staff to clarify further on issues raised. The study utilized theory related concepts
for the interpretation and comparison of findings.

1.4.3 Analytical techniques

The study used data collected as input for developing a simulation model using Anylogic 7.3.2
Personal Learning Edition software. The simulation model gives a simplified representation of a real
industrial set-up (Nikakhtar et al., 2012). The first simulation run was conducted to obtain the impact
of each individual variable and a variance analysis was performed to determine the most significant
variables for optimization. The data was presented in tables and the researcher plotted graphs so as
to observe trends for each output.

1.5 Importance of the research to the Engineering Management discipline

The study aims to contribute to the Engineering Management discipline in a number of ways. The
study aims to provide mining companies with an in-depth understanding of the link between the Lean
management principle and efficient execution of mining operations. The study contributes to the mining
and general process industry with quantified verification of how Lean optimization of the cycle
(process) times have a bearing on sectional cycle times, overall lead time and plant throughputs. The
diamond mining industry has a few research papers dedicated to it. Therefore, the researcher aims to
provide the industry with its unique documented study on Lean implementation. The researcher aims
to provide industry practitioners with more understanding regarding simulation modeling as a tool for
optimization of processes. The crunching commodity prices and the general volatility of the industry
are motivators for efficient management strategies in the mining sector. The Lean principle when fully
explored helps the engineering managers in minimizing losses and increase organizational efficiency.

1.6 Summary

Chapter one introduced the study and the Lean principle in the context of the mining industry. The
study highlighted the problem statement, introducing the research questions. The study then states
research objectives and the rationale of the study. The research design was briefly discussed, stating
the research approach, data collection procedures and the analytical techniques used in the study.

4
Finally, the researcher discussed the importance of the study to the engineering management
discipline.

5
 CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

A review of literature is conducted to provide an understanding of the lean management principle.

Lean is defined and explained using various literature. The study provides a brief background and
history of the Lean Management principle. The literature study highlights how Lean was adopted from
the car manufacturing industry and implemented in other different industries. The study discusses
various tools of the Lean Management principle. The study provides an overview of the mining industry
and identifies the challenges facing the industry. The study narrows its focus on the diamond mining
industry. The literature review focuses on simulation modeling as a tool to complement the existing
Lean tools. The application of simulation modeling to the lean principle is reviewed using various
literature. The study provides a synopsis of the outputs for the simulation model for the case study and
finally, the literature study identifies gaps in the current level of knowledge.

2.2 Synopsis of the Lean management principle

Companies have always aimed for better business and industrial performance and the Lean
management principle has proven to be a very effective tool regarding productivity improvement
(Urban, 2015). According to Mahmood (2015), productivity is a link between the output produced by a
particular company process and input resources utilized by the process to produce the output. An
organization must be able to maximize the output using minimum input resources

Das, Venkatadri & Pandey (2013) defined the Lean management principle as a philosophy that aims
to improve productivity and reduce waste. The major objective of Lean is to identify and reduce waste
through streamlining of the flow between steps in the value chain (Gamme & Aschehoug, 2014).
Dombrowski, Mielke & Engel (2012) suggest that the Lean management system provides a
comprehensive strategy to eliminate waste within processes, increase product quality and reduce lead
time. It is important to understand and contextualize waste. Baysan et al. 2013 detail the seven types
of waste below:

 Overproduction: Producing more goods than necessary.

 Transportation: Movement and handling of products.
 Motion: It is represented by the movement of the staff and machinery.

6
  Waiting: When the whole process waits for a machinery to complete a given cycle, waits for a
manager to respond to a question or waits for instructions or inputs resulting in a disturbance
of proper flow.
 Processing: Over-processing parts, work orders or projects.
 Inventory: WIP inventory is a product of huge processes with longer process times leading to
an increase in lead time.
 Defects: Defects must be removed instead of utilizing temporary measures such as repairing.

Mahmood (2015) asserts that Lean production utilizes half the labor input in a manufacturing set-up,
half the production space, half the time for product development and half the investment in tools.
Achieving this endeavor goes a long way in reducing manufacturing costs and meeting customer
demand on time.

Many organizations are attempting to implement or have already implemented Lean manufacturing.
According to Gurumurthy & Kodali (2009), some companies have implemented only a few elements,
while others have implemented a whole spectrum. Wijaya et al. (2009) suggest that many companies
in various industries have implemented some of the principles of Lean with an attempt to replicate
Toyota’s success. However only a few have matched the same improvements achieved by Toyota.
Wijaya et al. (2009) went on to give the primary reason as being that many companies have adopted
lean tools but lack understanding of how they work together in a system. It is, therefore, imperative to
contextualize the application of Lean in each respective industry.

Neuman et al. (2012) suggest that the best conditions to implement Lean holistically and successfully
are large company set ups with sufficient financial resources and concentrating in the production of
large quantity of products. This study concentrates on a large diamond mining company which
produces large quantities of diamonds.

According to Womack & Jones (2003), the critical initial point of Lean implementation is value. The
final consumer is the only one that can define value and it begins with the attempt to accurately define
value regarding specific service provided at a specific time and price, through a discussion with specific
customers. This is crucial because the producer can implement Lean tools focusing on meeting the
customer’s requirements, therefore, increasing customer satisfaction.

Das et al. (2014) state that the implementation of Lean principle usually starts with mapping current
process performance level using Value Stream Mapping (VSM). Parameters that are impacted by a
successful Lean implementation drive are cost, flexibility, delivery quality, reliability and delivery time
(Mahmood, 2015). These parameters are key to a successful engineering organization such as a
mining company.

7
According to Nicholas (2011), Lean manufacturing also represents a collection of methods for batch
production, reduction of set-up time, pull production, maintenance and a system for production control
and planning. However, there is some confusion and debate in the various literature about what lean
production is. Womack and Jones (1996) suggested a sequence of considerations when applying
Lean. These are:

1. Identification of specific market (customer) value

The principle aims to identify the value of the market. This is done to eliminate inefficient
operations that do not deliver their right value.
2. Mapping of the value stream
The value stream consists of all the activities in all areas of the company involved in collectively
providing the service. The value stream represents the process, from start to end, that provides
the value to the market or customer.
3. Creation of flow through waste elimination
Creation of flow focuses on designing the processes and establishing the ability for the entire
process to undergo continuous movement without any interruption through waste elimination.
4. Pull
Pull means meeting consumer’s demand for product or service without overproducing. No
production is done unless the product is required by the downstream processes.
5. Pursue perfection
Continuous improvement is a fundamental principle utilized in the elimination of waste. It is a
constant drive in improving the value requirements, redesigning the process steps in the value
chain and improving the speed of the flow. This ensures that obscured waste can be realized
and eliminated.

2.3 The history of Lean

Lean can be traced back to the Japanese industry post World War 2. According to Nicholas (2011),
Eiji Toyoda went to the Ford car manufacturing plant to acquire an understanding of mass production
methods. Eiji Toyoda, Taiichi Ohno and their group built a more efficient production system that is
cheaper and less wasteful than the system of mass production. The system was named, Toyota
Production System (TPS).

The term Lean was initially adopted as the ‘Lean Production System’ by John Krafcik after reviewing
the Toyota Production System (TPS) (Gamme & Aschehoug, 2014). It would be later adopted by

8
various organizations. Schnniederjans et al. (2010), suggests that one individual cannot be credited
for developing the Lean principle, but it is a system with contributions from many people over many
years.

2.3.1 Toyota Production System (TPS)

Figure 1: TPS House (Liker, 2004)

The TPS House shows the different elements that make up the Toyota Production System (TPS). TPS
reduces the time between an order and delivery of the product or service to the customer by eliminating
waste regarding process times and activities. The result is a lean process that delivers excellent quality
to customers at minimum cost with promptness and also enables the organization to realize income
with minimum inventory levels (Liker & Meier, 2006). Averill (2011) suggests that TPS’s success is
hinged on an organizational commitment to invest in human resources and a consistent
implementation of continuous improvement. According to Art of Lean (2006), over the years the Toyota
Production System has strived to achieve the following four goals:

1. Providing excellent quality and service to the customer that match world class standards.

9
 2. Developing each worker’s potential and ability, based on trust and cooperation.
3. Reducing cost by the elimination of waste and thereby increasing profit margins.
4. Developing manufacturing standards with a high degree of flexibility based on customer
demand.

2.4 Key Lean Tools

2.4.1 Value Stream Map (VSM)

A Value Stream Map (VSM) is a grouping of all activities that are required to achieve product flow;
beginning with the raw materials and ending with the finished products (Mahmood, 2015). VSM aims
to identify and eliminate waste in a manufacturing set-up to provide customers with greater quality
products in the shortest possible time (Andrade et al., 2015). In an industrial set-up such as a mining
company, VSM can be utilized to map the production chain from end to end with an endeavor to
identify waste and eliminate it. Das et al. (2014) divided Value Stream Mapping (VSM) exercise into
four key steps. These are:

1. Identification of a product category

2. Construction of a current state Value Stream Map
3. Construction of a future state Value Stream Map
4. Configuration of an action plan

Value Stream Mapping (VSM) methodology begins with the collection of data to understand the current
set-up. That information is then utilized to configure a diagrammatic representation of the value chain
known as a current state Value Stream Map. The current state VSM is used to simulate ideas around
opportunities for improvement and the composition of the process which is the future state Value
Stream Map (Nicholas 2011). The real benefit of Value Stream Mapping is that it eliminates single
point optimization and enables the practitioners to build a realistic system based on material and
information flow across the value chain (Liker & Meier, 2006). However, the static future state VSM
cannot illustrate the impact of the suggested improvement. It is, therefore, important to incorporate a
complementary tool into the VSM methodology to assess the impact of its implementation over time.
The following diagram illustrates an example of a Value Stream Map of a mineral processing plant.
The VSM illustrates how the ore moves from the mine until the final product (gold) is produced in the
smelthouse and delivered to the customer.

10
Figure 2: Example of a Value Stream Map for a mineral processing plant (Viljoen, 2015)

2.4.2 5S

Another important tool in the execution of Lean is the 5S. The term 5S comes from 5 Japanese words;
Seiri, Seiton, Seison, Seiketsu, and Shitsuke which translate to; Sort, Straighten, Shine, Standardize
and Sustain (Das et al., 2014). These phases utilize a step by step approach in their implementation.
During the Sort phase, the team sorts all the items and removes all the unnecessary items. In
production set-up, this helps to remove items cluttering the workspace. In the Straighten phase, the
team organizes necessary items, and define their location. The organization of items helps the
operators to quickly identify problem areas and therefore provide solutions promptly. In the Shine
phase, the team cleans every part of the work area and identifies the source of contamination. Once
the source of contamination is identified, solutions to rectify the problem are easy to implement. During
the Standardize phase, a detailed procedure is outlined to sustain the improvement. Finally, in the

11
Sustain phase, a detailed program is developed to train people for proper work practice and motivate
them to adhere to working procedures (Das et al., 2014).

The teams implement 5S through frequent inspection and grading of each work area. Cleanliness and
organization are important because without them, opportunities for improvement and sources for
improvement are usually obscured (Nicholas, 2011). 5S is, therefore, a crucial tool to utilize in the
mining industry as it increases visibility for improvement. The following diagram illustrates the waste
elimination cycle utilizing 5S.

Sort

Sustain Straighten

Waste
elimination

Standardize Shine

Figure 3: The 5S process (Liker & Meier, 2006)

2.4.3 Total Productive Maintenance

Total Productive Maintenance (TPM) is a principle introduced in Japan in the early 1970s. Seiichi
Nakajima and the Japan Institute of Plant Maintenance (JIPM) promoted TPM throughout the world
(Samanta & Banerjee, 2015). Total Productive Maintenance is a tool that enables all employees to be
involved in equipment improvement (Das et al., 2014). According to Gustafson et al. (2011), TPM goal
is to maximize the effectiveness of plant machinery and related equipment by adjusting the company
culture to improve the human resources and plant. According to Nicholas (2011), one of the goals of

12
TPM is to optimize the equipment so that it improves performance and requires lesser maintenance
as it ages. TPM is a very useful tool to use in the mining industry because the impact of human beings
is very significant in the mine operations (Gustafson et al., 2011). Energy consumption in equipment
is a key performance measure which requires constant monitoring and can be improved by TPM.
Baysan et al. (2013) listed activities where TPM and energy efficiency can be synergized:

 Energy efficiency optimization can be included in the plant maintenance activities.

 Train staff on energy waste identification and improvement of machine efficiency through
maintenance and operations.
 Implement continuous improvement actions on energy related components to make
equipment more efficient.

Nicholas (2011) stated that all workers should be involved in the drive to satisfy customer needs,
where the customer is located at the next step of the process. A machine malfunction is a form of
breakdown and TPM prevents breakdowns and malfunctions from occurring initially (Nicholas, 2011).
TPM is, therefore, a very important Lean tool to implement in an industrial environment with a high
density of expensive plant equipment. In the context of this study, TPM is a very crucial tool as it lowers
breakdowns, thereby, reducing downtimes. This will effectively reduce the lead times of a production
set-up.

2.4.4 Single Minute Exchange of Dies (SMED)

SMED is a Lean tool utilized to reduce the set-up time of a machine achieved by converting all internal
activities to external. Internal activities are the ones that require the stoppage of a machine and
external activities do not require such (Das et al., 2014). According to Nicholas (2011), the primary
focus in setting up time reduction is on internal time which is the downtime. The successful
implementation of SMED in an organization like a mining company means that there will be quicker
changeovers, reducing plant downtime.

2.4.5 The pull system

The pull system reduces under or overproduction by limiting production of the parts required by the
next process downstream. This is achieved by ensuring that the preceding process produces the
necessary number of parts (Art of Lean, 2006). Art of Lean (2006) suggests that if the demand of the
downstream process is not consistent, the upstream process must adjust the output accordingly to

13
compensate for the inconsistency. Liker & Meier (2006) suggest that there are three main elements of
pull that separates it from push:

1. It is defined. There is a clear agreement about the amount of product and the order of a model
mix between the supplier and market.
2. There is dedication. If two parties are sharing resources, they must be dedicated accordingly.
3. There is Control. Clear control procedures, which are visually apparent and physically
constraining so as to enforce a defined agreement.

An example of the pull system is Just-In-Time (JIT)

Just-In-Time (JIT)

According to Art of Lean (2006), JIT produces and supplies only the necessary parts, within the
required time, in the required quantity using only the required resources. JIT is a tool that targets to
keep the inventory levels to a minimum through each process pulling the flow from the preceding
process instead of pushing the items to the next process (Das et al., 2014). JIT, therefore, saves costs
in a mineral production set-up. Only material required downstream is produced, reducing inventory
costs significantly. In the case of a mining production set-up, the plant upstream must process material
(ore) that can be handled by the plant downstream.

2.4.6 Kanban

According to Mahmood (2015), Kanban provides the same idea as pull system which means a ‘signal’
that is used to activate demand of a product or service. According to Art of Lean (2006), Kanban, can
be classified in the following way:

 Withdrawal Kanban: It is a license to obtain from the stores section

 Instruction Kanban: It is a license to make products such as; instructing a production plant
equipment to produce a given number of units.

In an industry such as mining, Kanban is useful so as to control the amount of inventory that gets into
the production chain in order to minimize losses incurred when excess resources (reagents or spares)
are obtained from stores. Kanban also assists in making sure plant processes delivers material only
required downstream, therefore, reducing storage costs.

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2.4.7 Kaizen

Kaizen is a philosophy that encapsulates gradual progress which is continuous, increasing in value
and intensifying (Karkoszka & Honorowicz, 2009). The following diagram illustrates the phases in
continuous improvement.

Figure 4: The S-Curve of incremental improvement (Nicholas, 2011)

The first part of progress is slow as exhibited by the nearly flat first part of the curve as the studied
process is better understood. As learning accelerates improvement is therefore observed to occur in
like manner. According to Nicholas (2011), Kaizen is a philosophy which significant improvement is
realized from small incremental gains. In an industrial scenario, the organization should, therefore,
strive to continuously improve with regards to productivity and waste elimination. It is, therefore,
important to have a measurement system to compare the performance improvement achieved versus
the number of resources (effort) applied.

The Kaizen method is an important tool that can be utilized to increase productivity, gain competitive
advantage and improve the business performance in a robust business environment (Boca, 2011).

2.4.8 Jidoka

Jidoka is a philosophy that empowers the machines and operators to detect the occurrence of an
abnormal condition and immediately stop work (Baysan et al., 2013). Art of Lean (2006) suggests that
Jidoka will enable practitioners to improve quality by limiting the production of defective parts in large
quantities, preventing injury to workers or damaging equipment when there is an abnormal occurrence,

15
and providing a clear distinction between human work and machine work. In a large industrial set-up
such as a mining company, plant operators should be able to stop the plant and allow the maintenance
team to rectify the condition. By implementing Jidoka, the company saves huge costs incurred if a
significant part of the plant is damaged. It also helps the mining company to achieve its targets with
regards to safety.

2.5 The mining industry

2.5.1 Overview of the mining industry

Mining is the process of obtaining minerals from the earth to supply a given market so as to earn a
profit. It is, therefore, a business that requires efficient business practice to ensure viability and
sustainability. Newman et al. (2010) detail the five stages of mining which are prospecting, exploration,
development, exploitation, and reclamation. The following table briefly describes the activities involved
in each stage.

Table 1: Mining stages (Newman et al., 2010)

Stage Activity
Prospecting Geologists utilize visual analysis and physical measurements of the
earth’s structure to identify mineral deposits.
Exploration Geologists deduce the value of the mineral concentration and variability
by drilling holes and conducting measurements.
Development Permission is obtained to own the land and initial preparations are
conducted by clearing the top material through sinking of shafts into the
earth’s surface
Exploitation Ore is extracted from the ground and it is transported to the surface in
Articulated Dump Trucks (ADTs). Afterward, it can be stockpiled,
conveyed directly to a processing plant, or dumped.
Reclamation Restoration of the mined area to its natural state as much as possible.

According to Awuah-Offel & Adekpedjou (2011), mining provides most of the raw materials for
industrial processes and products. Helman (2012) suggests that the difference in specificity in each
mining company is because the manufacturing process is carried out in the natural environment and
consists of extracting ore from the deposit. High volatility and uncertainty inherently characterize this

16
activity. This means that each business optimization technique has to be adjusted to match the
different scenarios in the different mining set-ups.

Hattingh & Keys (2010) suggest that mining practitioners are increasing their focus on understanding
the value chain, especially how the different parts of mining co-exist to deliver value. This is done to
ensure that effective strategies are implemented to increase process efficiency in the value chain.

2.5.2 Synopsis of the case study: A diamond production process

The researcher utilizes one of the leading diamond mining companies in Southern Africa as a basis
for the study. Therefore, it is important to understand its operations. The production chain of the mine
is therefore summarized below.

Mining operations

The ore reserve at the case study mine consists of five Kimberlite pipes that have intruded into a
granite basement. There are three viable Kimberlite pipes named K1, K2 and K3. Of the three, K2 has
proven in the last few years to have the most recovery. K1 has the largest body at 450 meters in length
and 100 meters in width and K2 is the second largest at 250 meters in length and 150 meters in width.
Open pit mining is done mainly at the K2 pit and up to date the mine has drilled the pipes to more than
250 meters below the surface. The mining team prepares the benches before drilling and blasting.
The mining operations consist of drilling and blasting which the company conducts using contractors
and loading and hauling, using internal resources. The blasted ore is then loaded and transported to
the run of mine pad in preparation for the first part of the processing stage.

Crushing and Screening plant

The first stage of processing is crushing and screening, which is conducted mainly for size reduction
and liberation of diamonds before the material goes into the Dense Media Separation (DMS) circuit.
The current crushing and screening plant is under expansion, but for purposes of this study, the old
system crushing and screening plant is evaluated. The plant consists of a primary crusher, secondary
crusher, and tertiary crusher so as to meet the required size reduction. A double deck screen is used
to separate the different size ranges of the crushed ores and directing them to the relevant circuit,
product bin or stockpile when fully crushed to the specified size.

17
Figure 5: Schematic of the crushing and screening plant of the case study diamond mine

Dense Media Separation plant

After the material has reached the required DMS feed size, it is either conveyed to a stockpile or
conveyed directly to the DMS circuit, where it is conveyed to a scrubber so as to remove deleterious
material which is usually grit and slime.

After scrubbing the material passes through a de-slimming screen for the removal of remaining grit
and slime. The cleaned material is conveyed into the DMS modules. The current set up of the plant
consists of the 90 ton per hour module, 50 ton per hour module and the 10 ton per hour module which
is now being used mainly for re-concentration of DMS products. The medium flow circuit can be divided
into a correct medium circuit and a dilute medium circuit and has three main operations i.e. rinsing,
densification and magnetic separation. The dilute medium circuit consists primarily of ferrosilicon
recovery and contaminants removal. Effluent from the float and sink washing screens reports to the
dilute medium circuit where the ferrosilicon is recovered via magnetic drum separators and recycled
back to the correct medium circuit. The correct medium circuit consists of the densification circuit and
the mixing of correct medium with ore.

18
After concentration of material in the 50 ton per hour and 90 ton per hour DMS modules, it can either
be channeled back to the 10 ton per hour DMS module for re-concentration so as to remove more
waste material from the valuables i.e. diamonds or is channeled directly to the recovery plant.

Figure 6: Schematic of a simplified DMS plant at the case study diamond mine

Recovery Plant

The final separation of the diamonds from non-diamonds is carried out in the recovery plant. Sizing is
done to have a fractional size of the material to sort at a time. Each fractional sized particle has a
minimum gate opening. The gate must be opened just enough to allow the correct size and amount of
feed to pass. The material goes through a series of x-ray machines and then undergoes hand sorting.
During the hand sorting process, tweezers and scrappers are utilized to remove non-diamond
materials from diamonds in a glove box.

Caustic fusion and acid cleaning processes are conducted to digest non-diamonds and to polish the
surface of the diamonds. The caustic is introduced into the kiln and soaked for a time, and the
diamonds are dipped into the chemical. Hot water is used to quench the soaked diamonds. After this
cleaning, the diamonds are then boiled in the hydrochloric acid for the removal of all surface coating.
After the caustic fusion and acid cleaning the diamonds are sieved and grouped. Each fraction size is
weighed and recorded. The plant operators sort the diamonds while waiting for transportation.

19
Figure 7: Schematic of the recovery plant at the case study diamond mine

2.5.3 Challenges in the mining industry

The mining industry continues to experience low mineral prices, combined with rising operational costs
and volatility in supply and demand scenarios (Willis, 2014). The mineral prices have been on the
downward trend for the past few years. The following graph illustrates the rough diamond prices from
the year 2004 to 2015. The graph also presents a five-year forecast.

20
Figure 8: Rough diamonds global prices and forecast per carat (Paulzimnisky.com, 2016)

From the graph, the volatility of the rough diamond prices is visible. According to Wijaya et al. (2009),
dynamism, uncertainty, volatility and working environment with inherent risk, characterizes mining
work, therefore; there is a need for efficient management processes in place to sustain operations.
The mining value chain consists of a number of complicated elements as visualized in operations,
logistics and marketing. It is, therefore, important to fully understand the challenges associated with
these elements and how to address them so as to ensure efficient, streamlined operations with
maximum profit and reduced risk. This study narrows its scope on diamond production to address the
research objectives.

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2.5.4 Lean in the mining industry

There is not much documentation regarding Lean implementation and optimization in the mining
industry. A few companies have initiated a systematic adoption of the Lean principle, and there is also
limited evidence that illustrates broad acceptance of Lean production in the mining industry (Castillo
et al., 2014). Wijaya et al. (2009) suggest that the mining industry should adopt the Lean principle for
two primary reasons:

1. The mining industry has declined in profitability due to social and environmental demands of
sustainable development. Reducing production costs helps to compensate this effect
2. Both automotive and mining industries rely on efficient industrial processes, value stream
efficiency, efficiency of their operations and have a strict focus on safety. Lean has managed
to improve all those aspects of the automotive industry

Since the Lean management principle was adopted from the automotive industry, it is imperative to
look at the differences between the mining and the automotive industries so as to know how to apply
Lean relevantly to the mining sector. Dunstan et al. (2006) detail a comparison of the two industries in
the following manner:

Table 2: Comparison between the mining and automotive industries (Dunstan et al., 2006)

Mining Industry Automotive industry

Physically constraining environment Ambient environment
Inherently variability Stable work environment
Geographically spread-out teams Compact plants
Inherent variability in raw material supply Consistent supply of raw materials
Remote locations Located in large centers

Wijaya et al. (2009) suggest that the differences between the industries bring about dissimilarity of
values, needs and characteristics that if not carefully considered, lead to consequences. Both the
automotive and mining industries are characterized by different environments and therefore pose
different risks which need to be dealt with in a relatively different manner.

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2.5.5 Lean Mining Case Study: Rio Tinto Aluminium’s Carbon Bake furnaces (Dunstan et al.,
2006)

Background

Rio Tinto Aluminium decided to implement Lean in 2004, after seeing the successful implementation
by other aluminium producers. Rio Tinto Aluminium hired a UK-based consulting firm, Lean
Manufacturing Resources (LMR), to assist in the implementation of Lean. The key consultants in this
project were previously involved in the development and implementation of the Toyota Production
system at Toyota and other automotive companies. Rio Tinto Aluminium selected the model plant for
the initial implementation, and if successful, the management would spread Lean to the rest of the
organization. At the model site, the Carbon Bake Furnace was the first to implement Lean at Rio Tinto
Aluminum’s largest plant, Boyne Smelters at Gladstone in Central Queensland.

The Set-up

The setting of the process was a continuous production line, which was very compatible with the
conventional application of Lean. Intractable problems were inherent in the process, which the
organization failed to fix. Quality problems were faced when the organization implemented a major
process change that required the organization to make more carbon anodes for the alumina reduction
process in a shorter time.

The implementation of Lean

All employees had to be equipped with problem-solving techniques and therefore were able to make
decisions relating to production. A Lean Information Center was set up in the Carbon Bake unit. Old
production meetings were redundant therefore the company implemented a system of capturing
figures on the walls of the information center, thereby creating a real-time view of production
performance.

Information centers

Key metrics were chosen to gauge the progress of production and the mine staff pinned them on the
wall reflecting the suggestions made by operators and crew leaders. These Information centers
typically contained; the master schedule, detailing and tracking the Lean implementation schedule, a
detailed Value Stream Map of the production process identifying points at which value is added or lost
and concern, containment and countermeasure strips that identify and track issues and their
resolution.

5S and Visual Factory

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More than 50 tons of gear was collected and disposed of. In the Carbon Bake area, everything was
given a well-defined place using shadow boards or other types of demarcation that allow a quick audit
by exception.

Total Productive Maintenance (TPM) and Quick Change Overs (QCO)

Work processes were standardized, and the team tagged the equipment with Single Point Lesson
sheets, which identify routine checks necessary to ensure that the equipment is in good order and
used properly. Workers were encouraged to ‘own the equipment' so as to sustain the process

The process identified elements of the changeover and sorted them into those which are done with
production equipment operating (external) and those which are done with the equipment stopped
(internal). The aim of this process was to convert as many internal tasks to external ones as possible,
progressively shortening production downtime.

The Result

The company management reported that the progress was excellent and there was predictability of
about the process due to the implementation of Lean. Just-In-Time (JIT) and Kaizen were amongst
other tools applied to produce positive results. Within six months, the team had resolved previously
intractable issues and the Carbon Bake furnace for the first time was ahead of schedule. Upon
implementation of Lean, the company improved on employee retention in the model site area.
Financial results also improved, and the organization achieved stability quickly. The Key performance
measures started to highlight improvement within months of implementation. The performance on
carbon quality improved and has been sustained since 2006, as evidenced by anode reactivity and
the amount of carbon dust present in the reduction line furnaces.

24
 Table 3: Annualized achievements in the carbon blake furnace from 2004 to 2006 (Dunstan et
al., 2006)

Area Achievements
Health & Safety Incidents - 154 First aid - 24 No Lost work days -1 No Medical treatment - 1
decreased by 67 change change No change
People commitment Turnover - 15.5% Absenteeism - 3.4%
decreased by 9% decreased by 1.8%
Environment & Odors - 14
Communities decreased by 2
Market position Conformance to Anode rejects - 2% Unscheduled
(Internal customer heating curve - decreased by 0.9% changes - 60 p/day
and quality 70% decreased decreased by 8 /day
measures) by 88%
Operational Carbon dust - Net carbon ratio -
excellence 20% decreased 0.431 decreased by
by 6% 0.410

Financial strength Recycled >200 t coke valued at $386 A$2 million annualized savings. A$1.9 million
867. New in-house coke screen saves gain from avoidance of additional fan capacity.
$130 000 pa Delay of $1.2 million furnace re-build.

2.6 Simulation modeling

2.6.1 Introduction

Simulation utilizes mathematical concepts to predict the behavior of a system from a number of
parameters, variables and conditions (Sandhu et al., 2013). According to Love et al. (2000), there is a
lack of a detailed design methodology to guide and benchmark optimization of industrial processes.
Simulation modeling of business processes helps in tackling the inherent difficulties of studying and
analyzing businesses and thereby contributing a high degree of understanding which can be used to
improve processes (Love et al., 2000). According to Paul et al. (1997), there are a number of features
of simulation that make it a suitable for industrial process modeling and optimization. These are:

25
  A systems approach to simulation modeling links to a sequence of activities that describe the
activity of an object in the system (Law and Kelton, 1991).
 It is possible to adjust simulation models to incorporate variations in real systems and
therefore, can be used as a tool for decision support in continuous process improvement.
 It is possible to configure simulation models of planned industrial processes and utilize them
for the design of processes.
 Simulation models can include the behavior of people and machinery in the system.
 Simulation models can include the stochastic behavior of industrial processes and the random
behavior of their resources.
 Graphical representation of dynamic behavior of model objects is possible due to the
interactive nature of many simulation packages

Chances of improving efficiency and effectiveness of the process can be boosted by simulating the
outputs of redesigned processes, thus reducing the cost of experimenting on actual operations (Love
et al., 2000). Paul et al. (2007) suggested a framework for carrying out simulation modeling. These
are:

Step 1: Defining modeling objectives

The researcher has to decide on the outcome of the modeling and the information the model has to
provide. Depending on the research or business optimization objectives, the modeler has to decide
on the model outputs. These outputs must be able to provide sufficient information to allow the modeler
to make informed decisions on optimization.

Step 2: Deciding on modeling boundaries

The researcher has to decide on which parts in the process should be included in the model. The
degree of importance of some processes, the need to redesign processes that are not efficient and
how suitable the processes to be included in a model determines the decision. In this study, the
determination of the modeling boundary is crucial so as to meet the research objectives. The
researcher’s primary focus is on the production section of the mine.

Step 3: Collection of data and analysis

Important data about modeled processes has to be collected and analyzed to include it in the model.
Data is normally collected through consultation with practitioners of the field, observation of current
processes and analysis of process documentation. Standard statistical procedures are then utilized to
analyze the data. The collection of real plant data from real industrial scenarios contributes significantly
to the validity of the model.

26
Step 4: Business simulation model development

Upon completion of business process data collection and analysis, a simulation model is developed
utilizing a software package. The modeler develops the model through a process where initially a
simple model is developed, amplified and then refined until the modeler achieves an acceptable model.
The model should be able to run continuously from start to end without reflection of errors.

Step 5: Model testing

A number of model verification techniques should be utilized to test the models after each iterative
step. The model should be repeatable to provide the same results for each iteration. In the case of
plant throughputs, results should remain consistent.

Step 6: Model Experimentation

Model experimentation can commence after standard testing. The formal experimental design is
relevant where alternative ways of performing the same process are present. Standard rules for
experimental design include:

 The researcher must minimize random errors,

 Experiments must be designed in a manner that includes a number of alternatives so that
recommendations can apply in a broad range of industrial set ups,
 Simplicity should be inherent in each experiment as much as possible,
 The researcher must apply standard statistical techniques, avoiding unrealistic assumptions
regarding the industrial processes.

Step 7 - Output Analysis

Standard statistical techniques linked to the output variable estimations should be utilized to analyze
the output results of the experiment. Depending on the platform utilized for model configuration, built-
in statistical facilities are now a standard feature.

Step 8 - Recommendations regarding business process adjustment

Recommendations to organizations regarding industrial process optimization are made utilizing the
analysis of the output of the simulation model. These recommendations must be backed up by sound
theory depending on the area or industry being simulated.

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2.7.2 Methods in simulation modeling

There are three simulation methods, which are; System dynamics, Discrete Event Simulation (DES),
and Agent-based modeling. There are scenarios where it is best to utilize different modeling
techniques. For this purpose, the researcher configures a multi-method model (Anylogic, 2016). The
choice of the model is dependent on the modeled system and the purpose of the modeling (Anylogic,
2016). For this study, the literature review is going to focus on two methods of simulation modeling,
which are; Discrete Event Modeling and Agent-Based Modeling.

Discrete Event Simulation (DES)

The idea of DES method is that the modeler considers the modeled system as a process, i.e.
performing a sequence of operations across entities (Anylogic, 2016). The typical output expected
from a discrete event model is:

 Utilization of resources
 Residence time of the entities in the system
 Waiting times
 WIP Queue lengths
 Process throughput
 Bottlenecks

For purposes of this study, Discrete Event Simulation is chosen to model the diamond production
section of the mine as it is a process with a sequence of process steps.

Agent-Based Modeling

Agent-based modeling is a later modeling method than system dynamics or discrete event modeling.
According to Borshchev & Filippov (2004), the researcher defines behavior at the individual level and
the overall behavior comes out as an output of many individuals, following its individual behavior rules.
These individuals can be co-existing in some environment and communicating amongst themselves
or with the environment. That explains why Agent Based modeling is also known as bottom-up
modeling. Anylogic (2016) suggests that the modeler has another way of looking at the system:

 The researcher may have some understanding into how the system’s entities behave
individually. The researcher can start constructing the model from the bottom up through
identification of those objects and definition of their behaviors.

28
  The researcher can join the agents and allow them to interact or place them in an environment
encapsulating its dynamics. The global behavior of the system is derived from multiple
concurrent individual behaviors.

Borshchev & Filippov (2004) states that Agent Based approach can capture more real life scenarios
than with System Dynamics or Discrete Event approaches. However, there are a lot of scenarios
where System Dynamics or Discrete Event Simulation can be efficiently utilized for problem solving
than Agent-based modeling. In this study, Discrete Event Simulation is more appropriate to meet the
research objectives.

Borshchev & Filippov, (2004) propose that Agent-based modeling is for the researchers who aim to
explore beyond the boundaries of System Dynamics and Discrete Event approaches. Borshchev &
Filippov, (2004) also propose that Agent-based modeling is more appropriate in the case where the
modeled system contains different individual behaviors.

2.6.3 Selection of the software for simulation modeling

Discrete event (process-centric) simulation can utilize a number of software packages. Some of the
simulation packages available in the market include Anylogic, SIMUL8, and FlexiSim. Gupta et al.
(2010) suggest four main categories in the evaluation and selection of software for simulation
modeling. These are:

1. Hardware and software: Coding, compatibility of software and user support.

Coding can be a very important feature in a simulation package as it allows robustness and
flexibility. User support is also very important when considering a simulation package as it
provides quick solutions in cases where there are strict deadlines
2. Modeling capabilities: General features and modeling assistance.
The ability to learn how to use different features in the simulation package is very important. It
is also very important for a simulation package to have online help when required. In this study,
this feature is important because the researcher utilizes the simulation package for the first
time.
3. Simulation capabilities: Visual features, system efficiency, system testability,
experimentation and statistical tools.
In the selection of a simulation package, graphical representations and animations are
important. Efficiency and testability are very critical in testing for effectiveness and verification
of the model. When selecting a simulation package especially for research purposes,

29
 experimentation facilities are very crucial. Statistical facilities are also crucial for the
representation of random data. In this study, such facilities assist the researcher with easy
collection and analysis of data
4. Input and Output considerations: Input and output features, analysis and production
capabilities.
It is important to consider how the user can input data to the simulation package and the quality
of output reports generated. Analysis and manufacturing capabilities are also very crucial. In
this study, not much data analysis is conducted utilizing the simulation package.

Using the above-mentioned criteria plus the availability factor, the researcher selected Anylogic
software. This package can model production processes effectively because of its ability to combine
all the simulation methods; Agent-Based Modeling, Discrete event (process-centric) and System
dynamics. In this study, the researcher is focusing on the production process and therefore chooses
discrete event (process-centric) simulation as the simulation method.

2.6.4. Tools in the Anylogic 7.3.1 Software

The main features in the Anylogic simulation package that will be utilized in the building of the model
are:

Variables

Variables are used to store the outputs of the model, modeling data or entity characteristics that are
time dynamic.

Parameters

Researchers frequently use parameters for representing characteristics of the modeled object. There
is a distinction between variables and parameters. A variable represents a state which is dynamic and
a parameter is mainly utilized to represent objects in a static state. A parameter is usually a constant
in a simulation and the researcher can adjust it when there is a need to change the model behavior.

Source block

A Source block generates agents. In this study, it is the starting point of the process model.

TimeMeasureStart and TimeMeasureEnd

30
TimeMeasureEnd as well as TimeMeasureStart compose a pair of objects measuring the time the
entities spend between them (given points in a flowchart), such as time in system or length of stay.
These two blocks are important in this research as it focuses on cycle times.

Service block

Seizes a given number of resource units, delays the object and releases the seized units. It is equal
to a sequence; Seize, Delay, Release and should be utilized if the object only has to execute a delay
between seize and release. A service block represents each process step of the simulation model.

2.6.5 Application of Simulation modeling to Lean

Venkat & Wakeland (2006) states that in recent years, simulation has emerged as a complementary
tool for the design and improvement of Lean processes. Simulations are utilized for the modeling of
production processes for a major product category and to validate the current state VSM as well as
evaluating alternative scenarios of the future state VSM (Lian & Van Laneghem, 2002). Lian & Van
Laneghem (2002) suggest that there are two reasons for using simulation models. These are:

1. Simulation can be used as a tool to save costs - The use of simulation modeling can help
practitioners visualize the impact of Lean optimization on the key performance indicators
(KPIs) without a significant investment.

2. Simulation as a training tool for the workforce - Utilizing both a simulation model and a VSM
diagram, there is increased understanding and less resistance from the employees.

Lian & Van Laneghem (2002) utilized a simulation tool to prove some effects of lean production;
adjusting processing sequence, redesigning production layout and pulling the production from
downstream, reducing lead times, lowering the Work-In-Process (WIP) inventory, adding value and
eliminating bottlenecks. Simulation can help in the value chain analysis, for example, to estimate the
effectiveness of alternative configurations of a Lean process before actual implementation (Venkat &
Wakeland, 2006). Utilizing simulation modeling, it is feasible to measure performance improvement
which may be realized from the application of Lean principles (Andrade et al., 2015).

McDonald et al. (2002) suggest that simulation should be included in the Lean toolset. Robinson et al.
(2012) discuss how the Lean concept is directly related to the key methodology assumptions of
Discrete Event Simulation (DES). The seven original wastes are compatible with Discrete Event
Simulation application as shown in the following table:

31
Table 4: The role of DES in reducing waste (Robinson et al., 2012)

Seven Original Wastes Role of DES

1. Transportation: movement of products that are not Modeling the process flow and measuring
needed for processing transportation times

2. Inventory: unprocessed Work in process and Modeling inventory queues

finished product.

3. Motion: people or equipment moving or walking Modeling the interconnection between resources
more than is required to perform the processing (people and equipment) and the process

4. Waiting (Delay): waiting for the next production
step
5. Overproduction: production ahead of demand
6. Over-processing: resulting from poor equipment or
product design creating activity
Modeling queues that evolve as a result of
variability in interconnected processes
Modeling the link between variabilities in demand
and production
Modeling the process flow and measuring utilization
of resources and processes

7. Defects: the effort applied in the inspection and Modeling of variability in defect occurrence,
fixing of defects identification and its impact on the flow of processes

2.7 Synopsis of the outputs for the simulation model for the current study

The study identifies key performance indicators for the case diamond mine production set up. These
key performance indicators are chosen to be the simulation outputs so as to observe how they are
affected by Lean optimization of cycle times. These are; sectional cycle (process) times, which
comprise of total cycle time, mining cycle time, crushing and screening plant cycle time, DMS plant
cycle time, recovery plant cycle time, Lead time and plant throughputs which comprise of crushing and
screening plant throughput and DMS plant throughput.

2.7.1 Cycle (Process) times

Cycle time is total time to move a unit of work from the start to the end of a physical process. When
referring specifically to plant operation, it is the time required to complete an entire operation on one

32
part from entering the machine to the exit of the machine (Agrahari et al., 2015). In this study, the cycle
times are used primarily to meet the research objectives. The study investigates lean simulation
optimization and its effect cycle times. The cycle time outputs for the case study are; total cycle time,
mining cycle time, crushing and screening plant cycle time, DMS plant cycle time and recovery plant
cycle time. For study purposes, the researcher observes how long a batch of ore (one ton) takes to
enter each plant until it exits.

2.7.2 Lead time

According to Bharath & Prakash (2014), Lead time is the time spent between the original customer
order and the final delivery of the product to the customer. It is, therefore, important for company
production processes to have small lead times, low costs and high customer service levels to survive.
In this study, the lead time is the time taken by the material to move from the start of the production
chain until the diamonds are fully recovered and ready to be transported to the market. The lead time
consists of both process and waiting times.

2.7.3 Plant throughput

There is a need to improve plant throughput to meet production targets (Alden et al., 2006). According
to Emerson Process Management (2003), increasing throughput enables you to meet more of the
available demand without building new production facilities. The study investigates how Lean
simulation optimization affects plant throughput outputs. The plant throughputs under investigation in
the diamond mine case study are; crushing and screening plant throughput and DMS plant throughput.

2.8 Gaps in the current level of knowledge

The literature study illustrates that not much research has to be conducted focusing on the application
of Lean in mining. Gamme & Aschehoug (2014) compliments the view by suggesting that more
research should include more cases in different industrial sectors which include mining. Though Lean
has proven to be an effective tool for waste elimination and productivity improvement, there is still
need for more quantified studies on its benefit in the mining industry. Castillo et al. (2014) suggest that
future research must focus on analyzing the costs incurred and quantifying the economic impact of
the improvements realized by implementing Lean. Das et al. (2013) state that further analysis of

33
process times can surface new possibilities of improvement during Lean implementation. The
identified gap provide a leeway for this current study as it will narrow down to cycle (process) times.

Sandhu et al. (2013) suggest that the developed simulation models must optimize the responsiveness
of the production and delivery lead time to minimize the total supply chain cost. This will provide a link
between simulation optimization and Lean as Lead time reduction is one of the major objectives of
Lean application in any industrial scenario.

Conducting a study in evaluating the impact of Lean in the mining sector and using simulation
optimization for Lean evaluation, has been therefore identified as an opportunity to close existing gaps
in the literature.

2.9 Conclusion

The current chapter reviewed existing literature on the Lean principle. A brief overview of the mining
industry and explored its current challenges. A case study was utilized to review the implementation
of Lean in a typical mining set up and presented the benefits. Simulation modeling was introduced and
integrated with Lean and explored the various benefits. The study identified gaps in the literature,
further justifying the need for this study. The next chapter discusses the research design used in the
study.

34
 CHAPTER 3: RESEARCH DESIGN

3.1 Introduction

The study aims to address the following research questions:

1. What effect does the Lean principle have on mining operations?

2. How can simulation modeling be used as a tool for lean evaluation scenarios?

Following the literature study, the researcher sees an opportunity for Lean application in the mining
industry and the application of simulation modeling as a Lean evaluation tool. A case study is utilized
to identify and examine the production flow that exists on a diamond production set up. The production
flow of the diamond mine is in sequence, therefore, the study aims to test how the sequence of process
steps can be optimized. The key target is to optimize cycle times and observe the impact it has on the
outputs. According to literature, Value Stream Mapping is the first stage in Lean implementation so as
to identify opportunities to reduce waste regarding cycle times. The diamond production set up is
represented by a current state Value Stream Map (VSM), describing the products’ movement through
the production line and the resources utilized. The VSM is constructed using data collected from direct
observation of operations in the production chain and utilizing historical production records. The
researcher collects sample production and operational data from each the process units identified.

Since the process steps are in sequence, the literature study has justified the use of Discrete Event
Simulation (DES). Discrete Event (Process-centric) Simulation is, therefore, used as a complementary
tool to evaluate the impact of Lean on a mine production section. Using the Value Stream Map and
the sample data, the simulation model is constructed using Anylogic 7.3.2 Personal Learning Edition.
The study employs Lean optimization in the simulation model focusing on cycle times, which is a key
performance measure at the diamond mine. The outputs of the simulation model are part of the key
performance indicators of the current diamond mining operation.

Experimental Design

The simulation experiment aims to test the impact of reducing cycle times for the different process
steps. The modeling takes a linear approach where current values of cycle times are reduced
systematically to the values set as best practice. The experiment in the process aims to test the
response of the outputs as indicated by the overall lead time and the plant throughputs. The variables
utilized in the experiment are determined by conducting an initial simulation run to test impact of each

35
variable on the outputs. A variance analysis is subsequently conducted to determine the most
significant contributing variables which are then utilized for optimization. Simulation runs are
conducted by combining the significant contributing variables from two at a time, adding one significant
contributing variable at a time to the combination until they are all run at minimum. An optimum
combination is determined.

3.2 Sample data Collection

The researcher collects data from the mine production section of a diamond mine. The areas of focus
are mining, crushing and screening plant, dense media separation plant and Recovery section.
Historical production records, manufacturer specifications, operator estimates, management
estimates and direct observations are utilized primarily to obtain current figures in terms of time spent
in the system, waiting times and bottlenecks. Follow-up telephone calls to relevant mine staff were
utilized to obtain clarity on issues raised.

The aim of the study is to utilize the sample data for developing the current state Value Stream Map
(VSM) and therefore use the sample data and the current state VSM to configure the simulation model
of the mine production chain.

3.3 Current State Value Stream Mapping (VSM)

According to literature, Value Stream Mapping is the first stage in Lean implementation so as to identify
opportunities to reduce waste regarding cycle times. The researcher constructs the current state VSM
of the mine to identify and highlight sources of waste. Andrade et al., (2015) suggests that there are
three types of actions on a value chain’s length:

1. Steps that add value

2. Steps that do not add value but are inevitable
3. Steps that do not create value and should, therefore, be avoided
The researcher decides on which times to eliminate from the non-value adding times in each process.
This decision is reached using the help of mine staff, diamond mining literature and researcher
experience. The sample data collected is crucial in developing the current state Value Stream Map.
The current state Value Stream Map allows the researcher to break the production value chain into
process units and therefore enabling efficient analysis of each process unit so as to identify opportunity
for Lean optimization.

36
 3.6 Proposed variables

The researcher suggests variables which have an impact on the production cycle times. The aim is to
illustrate how the application of Lean to production cycle times result in the reduction of waste
regarding cycle times. The proposed main variable is time and the subsets of the time are: drilling and
blasting time, loading and hauling time, primary crushing time, secondary crushing time, tertiary
crushing time, 50 ton per hour DMS time, 90 ton per hour DMS time,10 ton per hour DMS time, sizing
time, x-ray sorting time, caustic fusion time, lead time. Work In Process is also a variable used to
indicate tonnage observed in the production system.

Table 5: Proposed variables for the study

Variables
Drilling and blasting time
Loading and hauling time
Primary crushing time
Secondary crushing time
Tertiary crushing time
50 tons per hour DMS time
90 tons per hour DMS time
10 tons per hour DMS time
Sizing time
X-ray sorting time
Caustic fusion time
Lead time
Work In Process (WIP)

3.7 Outputs under investigation

The study derives the simulation outputs from the diamond mine’s key performance indicators that are
directly affected by the cycle times. The derived outputs are total cycle time, mining cycle time,
crushing and screening cycle time, DMS cycle time, recovery cycle time, crushing and screening plant
throughput and DMS plant throughput.

37
Table 6: Study outputs

Output Formula
Total cycle time Mining cycle time + crushing and screening
cycle time + DMS plant cycle time + recovery
plant cycle time
Mining cycle time Drilling and blasting time + loading and hauling
time

Crushing and screening cycle time Primary crushing time + secondary crushing
time + tertiary crushing

DMS plant cycle time 50 ton per hour DMS time, 90 ton per hour
DMS time + 10 ton per hour DMS time

Recovery plant cycle time Sizing time + x-ray sorting time + hand sorting
time + acid cleaning time + caustic fusion time

Crushing and screening plant throughput WIP/ (crushing and screening cycle time/60)

DMS plant throughput WIP/ (DMS cycle time/60)

3.6 Simulation Modeling

The researcher utilizes the developed current state Value Stream Map of the production process and
the sample data collected to construct the simulation model of the mine production chain. Although
Value Stream Mapping allows users to see the process in a static sense, simulation provides a
dynamic visualization over time (Detjens & Flores, 2013). In this study discrete event simulation is
utilized due to its capability of manipulating the variability and uncertainty of system’s parameters. The
simulation model is developed using Anylogic 7.3.2 Personal Learning Edition software. According to
Gilbert & Troitzsch (2005), it is easier to use a simulation package than to start writing one’s program
because, during the development of the simulation package, the programmers solve many of the

38
 issues that take time when writing a program. In the Anylogic simulation package, there is a library of
higher level objects that help to create discrete event patterns frequently used in the discrete event
(process-centric) modeling called the Process modeling library.

3.6.1 Simulation modeling stages in Anylogic

Configuration of the process blocks into the model

Production process steps at the mine are configured using service blocks in the Process modeling
library for each process step. The production process steps included are; drilling and blasting, loading
and hauling, primary crushing, secondary crushing, tertiary crushing, 50 ton per hour DMS, 90 ton per
hour DMS, 10 ton per hour DMS, sizing, x-ray sorting, hand sorting, acid cleaning and caustic fusion.

Drilling and Loading and Primary Secondary Tertiary

blasting hauling crushing crushing crushing

50 T/H DMS 90 T/H 10 T/H Sizing X-ray sorting

DMS DMS

Hand sorting Caustic Acid

fusion cleaning

Figure 9: Process steps in the simulation model

Configuration of variables into the model

This section is important in the design of the simulation experiment. The study utilizes variables for
lean assessment at the different process steps. The study discusses the variables and expected
outputs in detail in the sections above.

Collection and analysis of outputs

Outputs from the different processes with the variables are collected from the variable blocks and
analyzed. The researcher utilizes statistical charts available in the Anylogic 7.3.1 PLE for the
visualization of outputs of different iteration runs.

39
 Configuration of process blocks

Configuration of variables

Collection and analysis of outputs

Figure 10: Simulation modeling stages in Anylogic

3.6.2 Optimization experiment

The study utilizes sliders available in the Anylogic Simulation software process modeling library for the
optimization experiment.

Table 7: Simulation constraints

Slider position Implication

Current state cycle time

Minimum cycle time

Test for statistically significant variables for optimization

The study conducts a test to determine the most significant contributing variables. The study conducts
a simulation experiment, adjusting the variables to minimum one at a time while the other variables
remain 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 is then conducted to determine the variables that provide
statistically significant change in the simulation outputs. The research focuses on the statistically
significant variables to optimize the cycle times and reduce the lead time. The following table shows
the simulation experiment. Trial one is run at current cycle times and Trials two to eleven are run
adjusting one variable at a time. The aim is to establish the impact of each variable comparing the
variances from the current state scenario. In the simulation experiment: A = Current cycle time and B
= Minimum cycle time

40
 Table 8: Proposed simulation experiment for determining the most significant variables

Trials
One Two Three Four Five Six Seven Eight Nine Ten Eleven
Drilling and A B A A A A A A A A A
blasting time
Loading and A A B A A A A A A A A
Hauling time
Primary A A A B A A A A A A A
crushing time
Secondary A A A A B A A A A A A
Crushing time
Tertiary A A A A A B A A A A A
crushing time
50 T/H DMS A A A A A A B A A A A
time
90 T/H DMS A A A A A A A B A A A
time
10 T/H DMS A A A A A A A A B A A
time
Sizing time A A A A A A A A A B A
X-ray sorting A A A A A A A A A A A
time
Hand sorting A A A A A A A A A A B
Caustic A A A A A A A A A A A
fusion time
Acid cleaning A A A A A A A A A A A
time

Simulation trials for optimization

The study utilizes the variables that provide significant change for conducting the optimization
experiment. The optimization scenarios adopted are summarized in the table below:

41
 Table 9: Proposed iterations for the simulation experiment

Trial Iteration
1 Current state

2 Top two significant variables at minimum

3 Top three significant variables at minimum

4 Top four significant variables at minimum

5 Top five significant variables at minimum

However, it is noted that there are process units whose cycle times cannot be reduced. The cycle
times for the process units will each remain at current state. The process units are Caustic fusion, Acid
cleaning and X-ray sorting.

3.7 Quality of the study

3.7.1 Validity of the simulation model

The initial construction of the simulation model was conducted utilizing real and current process data.
The researcher configured exact variables observed in the plant and processes. This ensures that the
model represents the actual operation and therefore the deductions from the study illustrates a high
level of validity.

3.7.2 Reliability

Reliability means that the researcher can repeat operations of a study with the same results (Mae &
Ohno, 2012). The different trial runs of the simulation model were repeated and produced the same
outputs for a given iteration.

42
3.8 Conclusion

The chapter presented the research design of this study. The study provided an extensive description
and explanation of the research methods adopted to achieve the research objectives. The next chapter
presents the results and the deductions of the study.

43
 CHAPTER 4: RESULTS AND DISCUSSIONS

Introduction

This chapter presents the results of the impact of applying Lean in the mining industry and to assess
how researchers and industry practitioners can use simulation modeling as a tool for Lean evaluation.
The researcher conducted a comprehensive literature study so as to answer the research questions.
A case study of an existing diamond mining set up was conducted focusing on the production side of
the mine. The study focused on the cycle times of the production chain. A current state Value Stream
Map (VSM) was constructed to identify all the process units of the mine production and to identify
waste in cycle times clearly. Historical production records and direct observations were utilized
primarily to obtain current figures in terms of time spent in the system, waiting times and bottlenecks.
The researcher constructed a simulation model and ran the model with the current cycle times and the
outputs namely; Total cycle time, Mining cycle time, Crushing and screening plant cycle time, DMS
plant cycle time, Crushing and Screening plant throughput, DMS throughput and Lead time.

In this chapter, the first tier of results consists of the tabulated sample data collected from each process
unit. Each data set for each section is accompanied by a summary of the observed challenges in each
section. The developed current state Value Stream Map of the diamond mine’s production section is
then presented. The second tier of results consists of the results of the variance analysis illustrating
the significant variables to be used for the Lean simulation optimization experiment. Tabulated
simulation outputs for each trial and the graphical illustration of results for the outputs are presented.
The results are analyzed and deductions are made.

4.2 Sample data collected in each process unit

The study recorded the data collected for each section in tables. Observations made on site together
with information gathered from interviews are also presented.

44
4.2.1 Drilling and blasting

The current targeted drill rate is 25 meters per hour to drill 10 meters deep holes. The diameter of the
hole is around 127 millimeters. The shift target is to drill 20 holes. During the charging process, the
targeted rate of filling the holes with the explosive is 200kg per minute.

At the time of the study, there were delays in the supply of emulsion used for the making of the
explosive. The supply delay would disrupt the blasting schedule. The geology of the rock at certain
levels of the pit caused wear and tear of consumables. Faults in the ore body caused the formation of
boulders which required re-blasting. The following table contains data collected:

Table 10: Drilling and blasting data

Target Current state

Drilling and blasting cycle 606.7 minutes 666.7 minutes
time

4.2.2 Loading and Hauling

There are two 12 hour shifts per day, 1 hour dedicated to general maintenance, 30 minutes for
refueling ADTs and hour dedicated to lunch break.

The researcher observed some unnecessary stoppages when the maintenance staff greased the
machinery mid-operations. Some spares for the machinery were not immediately available at the
workshop causing a delay while waiting for the ordered spares from the central stores. At some
instances, ramp preparations were done at loading bays during operating hours of the ADTs which
caused delays.

Table 11: Loading and hauling data

Target Current state

Loading and hauling Cycle 18 minutes 25 minutes
Time

4.2.3 Crushing and Screening Plant

The current crushing and screening plant is under expansion, therefore, for the purposes of this
research, the old plant set up was utilized. The cycle times for the plant were analyzed per ton of ore.

45
During the study, the crushing and screening plant experienced delays primarily due to the breakdown
of the secondary crusher. The filling up of the bins caused delays as the material cannot proceed to
the next stage of processing.

Table 12: Crushing and screening plant data

Target Current state

Primary crusher throughput 220 tons per hour 160 tons per hour
Primary crusher cycle time 0.273 minutes 0.375 minutes
Secondary crusher throughput 245 tons per hour 185 tons per hour
Secondary crusher cycle time 0.245 minutes 0.324 minutes
Tertiary crusher throughput 190 tons per hour 170 tons per hour
Tertiary crusher cycle time 0.316 minutes 0.353 minutes

4.2.4 Dense Media Separation (DMS) plant

The current DMS plant consists of a 90 ton per hour DMS module, 50 ton per hour DMS module and
a 10 ton per hour module. For proposes of the study, the research focused on sections of the plant
which contribute directly to the processing of the material to the next stage. At the time of the study,
much of the downtime was due to planned shutdown for scrubber maintenance. The front end also
contributed to the downtime as the belt feeder tripped.

Table 13: DMS plant data

Target Current
90 T/H module throughput 55 tons per hour 50 tons per hour
90 T/H module cycle time 1.09 minutes 1.20 minutes
50 T/H module throughput 56 tons per hour 55 tons per hour
50 T/H module cycle time 1.07 minutes 1.09 minutes
10 T/H module throughput 12 tons per hour 10 tons per hour
10 T/H module cycle time 5 minutes 6 minutes
Total DMS cycle time 7.18 minutes 8.27 Minutes

46
4.2.5 Recovery plant

The recovery section of the processing plant has been the same, but the diamond mine upgraded the
DMS plant. The bins in the recovery section were filling up rapidly, thereby causing delays. During
observations, the movement of the material from the sizing bins to the x-ray machines was very slow.
Instead of the normal 10 minutes period, it took 1 hour for the 8/4 and 4/2 size range. The researcher
observed inconsistencies in the supply of water used for most processes in the recovery section,
thereby causing delays. For purposes of the study, focus was directed mainly on the coarse material
channel.

Table 14: Recovery plant data

Target Cycle times Current Cycle times

Sizing 10 minutes 60 minutes
x-ray sorting (first, second 220.5 minutes 220.5 minutes
and third passes)
Caustic fusion 30 minutes 30 minutes
Acid cleaning 210 minutes 210 minutes
Hand sorting 720 minutes 780 minutes

4.3 Current state Value Stream Map

The study presents the current state Value Stream Map developed for the case diamond mine. The
researcher focused on the production section of the mine. The Value Stream Mapping process
enabled the researcher to break down the value chain into process blocks so as to enable detailed
analysis of the cycle and waiting times. The process enabled the researcher to visualize the
bottlenecks and other challenges affecting the current cycle times. The current state Value Stream
Map (VSM) presented below illustrates the product movement along the value chain, the cycle
(process) times and the scheduling structure of the mine production section.

47
 Daily schedule

Vault

30 min 5 min 5 min 5 min 5 min 5 min 5 min 60 min 2 min 10 min 5 min 5 min

666.7m 25 min 0.375min 0.324 min 0.353 min 1.09 min 1.20 min 6 min 60 min 220.5min 720 m 30min 210 min

CT = Cycle time min = minutes

48
Figure 11: Current state Value Stream Map for the production chain of the diamond

Deductions from the current state Value Stream Map

The study developed the current state Value Stream Map as the first stage of lean evaluation. The
diagram documents every step of the diamond production process. The study highlighted the waiting
times in between each process. For the study, the Value Stream Map illustrates a batch (1 ton) of ore’s
movement from the pit until the company transports the final product (diamonds) to the market.

This data provides a framework for developing a realistic simulation model for the diamond production
process. Lean optimization is then employed to observe response times and plant throughputs. The
current state Value Stream Map (VSM) is, therefore, important during the early stages of Lean
optimization as it provides an understanding of how the whole production value chain is structured.
The current state VSM also provides an understanding on the existing bottlenecks and anomalies that
exist regarding cycle times. However, the next section of the study will determine which sections will
be optimized by the simulation experiment depending on their statistical significance.

4.4 Optimization experiment results

4.4.1 Test for significant variables

The study presents the tabulated results of a simulation experiment, adjusting the variables to
minimum one at a time while the other variables remain at current cycle time. Trial one is run at current
cycle times and Trials two to eleven are run adjusting one variable at a time. The simulation results
are used for variance analysis of the variables to determine their statistical significance so as to pick
the significant ones for optimization.

49
 Table 15: Simulation experiment results for determining the most significant variables

Trial
Output 1 2 3 4 5 6 7 8 9 10 11
Mining cycle 692 632 685 692 692 692 692 692 692 692 692
time
(minutes)
Crushing and 1.1 1.1 1.1 0.95 0.97 1.0 1.1 1.1 1.1 1.1 1.1
screening
plant cycle
time
(minutes)
DMS cycle 8.29 8.29 8.29 8.29 8.29 8.29 8.27 8.18 7.29 8.29 8.29
time
(minutes)
Recovery 1301 1301 1301 1301 1301 1301 1301 1301 1301 1251 1241
plant cycle
time
(minutes)
Total cycle 2002 1942 1995 2001.4 2001.5 2001.5 2001.5 2001.4 2001 1952 1942
time
(minutes)
Crushing and 57.0 57.0 57.0 63.2 61.7 59.1 57.0 57.0 57.0 57.0 57.0
screening
plant
throughput
(T/H)
DMS plant 7.2 7.2 7.2 7.2 7.2 7.2 7.3 7.3 8.2 7.2 7.2
throughput
(T/H)
Lead time 2144 2084 2137 2143 2143 2144 2135 2134 2143 2094 2084
(minutes)

The variance analysis table is presented below. All times are in minutes.

50
 Table 16: Variance analysis table for testing variable significance

Drilling Loading Primary Secondary Tertiary 50tph 90tph 10tph sizing Hand
& & crushing crushing crushing DMS DMS DMS sorting
blasting hauling
Normal 2144 2144 2144 2144 2144 2144 2144 2144 2144 2144
lead time
(minutes)
Minimum 2114 2140 2143 2144 2144 2144 2144 2143 2119 2114
lead time
at 50%
(minutes)
Variance 30 4 1 0 0 0 0 1 25 30
at 50%
(minutes)
Minimum 2084 2137 2143 2143 2144 2136 2134 2143 2094 2084
lead time
at 100%
(minutes)
Variance 60 7 1 1 0 8 10 1 50 60
at 100%
(minutes )

From the variance analysis table, the researcher decided to analyze the variances at 100%
minimization of cycle time for each variable. It can be deduced that Drilling and blasting time, 90 T/H
DMS time, 50 T/H DMS time, Sizing time and Hand sorting time are the significant variables which are
utilized for Lean optimization scenarios in the simulation experiment.

51
4.4.2 Optimization Results

The following table presents the results of the lean simulation optimization experiment.

Table 17: Simulation optimization experiment results

Trial
Output 1 2 3 4 5
Mining cycle time (minutes) 692 632 632 632 624.7

Crushing and screening plant 1.1 1.1 1.1 1.1 1.1

cycle time (minutes)

DMS cycle time (minutes) 8.29 8.29 8.29 8.18 8.16

Recovery plant cycle time 1301 1241 1191 1191 1.191

(minutes)
Total cycle time (minutes) 2002 1882 1832 1831 1827

Crushing and screening plant 57.0 57.0 57.0 57.0 57.0

throughput (tons/hour)

DMS plant throughput 7.2 7.2 7.2 7.3 7.4

(tons/hour)

Lead time (minutes) 2144 2024 1974 1973 1969

4.5 Graphical Illustration of simulation experiment

The study analyzes output in the sections with variables considered to be significant regarding
optimization. These are mining cycle time, DMS cycle time, DMS throughput and recovery cycle time.
The study finally presents the graphical analysis of the overall lead time which is the key output in this
study.

52
4.5.1 Mining cycle time

Mining cycle time outputs

700
690
680
Time (minutes)

670
660
650
640
630
620
610
600
One Two Three Four Five
Simulation trial

Figure 12: Mining cycle time from the simulation optimization experiment

Deductions

The researcher observed a reduction from 692 minutes in trial one to 632 minutes in trial two. The
reduction in mining cycle time is because of the reduction of drilling and blasting time to a minimum in
trial two. The mining cycle time remains at 632 from trial two to trial 5 because no other variable was
adjusted from the mining section

53
4.5.2 DMS cycle time

DMS cycle time outputs

8.3

8.25
Time (minutes)

8.2

8.15

8.1

8.05
One Two Three Four Five
Simulation trial

Figure 13: DMS cycle time outputs from the simulation optimization experiment

Deductions

From trial one to trial three the DMS cycle time remained at a current value of 8.29 minutes because
no variable in the DMS section was adjusted in the first three simulation trials. Trial 4 recorded a
reduction from the current 8.29 minutes to 8.18 minutes because the 90 T/H DMS time was reduced
to a minimum. Trial 5 recorded the lowest DMS cycle time of 8.16 minutes because both the 90 T/H
DMS time and 50 T/H DMS time were reduced to a minimum. However, the contribution of the 50 T/H
DMS module to the optimization of the DMS cycle time is very minimum.

54
4.5.3 DMS throughput

DMS throughput outputs

7.38
7.36
Throughput (tons/hour)

7.34
7.32
7.3
7.28
7.26
7.24
7.22
7.2
7.18
One Two Three Four Five
Simulation trial

Figure 14: DMS throughput outputs from the simulation optimization experiment

Deductions

From trial one to trial three the DMS throughput outputs remained at a current value of 7.2 tons per
hour because no variable in the DMS section was adjusted in the first three simulation trials. Trial 4
recorded an increase from the current 7.2 tons per hour to 7.3 tons per hour because the 90 tph DMS
time was reduced to a minimum. Trial 5 recorded the highest DMS plant throughput of 7.4 tons per
hour because both the 90 T/H DMS time and 50 T/H DMS time were reduced to a minimum. However,
the contribution of the 50 T/H DMS module to the optimization of the DMS plant throughput is also
very minimum.

55
4.5.5 Recovery cycle time

Recovery cycle time outputs

1320
1300
1280
1260
Time (minutes)

1240
1220
1200
1180
1160
1140
1120
One Two Three Four Five
Simulation trial

Figure 15: Recovery cycle time outputs from the simulation optimization experiment

Deductions

The researcher observed a reduction from 1301 minutes in trial one to 1241 minutes in trial two. The
reduction is because of the reduction of hand sorting time to a minimum in trial two. The recovery cycle
time records its lowest value of 1191 minutes in trial three because both variables, hand sorting time
and sizing time are reduced to the minimum value. The recovery cycle time remains at 1191 minutes
from trial three to trial five because no other variable in the recovery plant is changed.

56
4.5.3 Lead time

Lead time outputs

2200

2150

2100
Time (minutes)

2050

2000

1950

1900

1850
One Two Three Four Five
Simulation trial

Figure 16: Lead time outputs from the simulation optimization experiment

Deductions

The lead time is the key output for optimization in this study. As the cycle times are minimized, the
lead time output reduces significantly from the current lead time of 2144 minutes in trial one to 2024
minutes in trial two. The lead time also reduces significantly in trial 3. Trial 5 has the lowest lead time
output as all the significant variables chosen for optimization will be at a minimum.

4.6 Overall Analysis of results

The simulation experiment illustrates how the different optimization scenarios impact the overall lead
time and plant throughput. The experiment tested variables; current state for trial one, top two for trial
two, top three for trial three, top four for trial four and all the five chosen significant variables for trial
five.

Trial five records the least lead time output, reducing the lead time from the current 2144 minutes to
1969 minutes. However trial three shows the optimum lead time as less input is required to produce a
significant reduction in lead time. Lead time output in trial 3 is 1974 minutes which does not show a

57
significant difference in output with trial five when all the chosen variables for optimization are
minimized.

The study, therefore, recommends the case diamond mine to implement the scenario in trial three to
minimize Drilling and blasting time, hand sorting time and Sizing time, for an optimum lead time.
However minimizing all the chosen variables will produce the least lead time and also impact the DMS
plant throughput, which is also a key performance indicator.

The results from the simulation experiment illustrate that if Lean is correctly implemented to reduce
cycle times, the key performance indicators represented by the lead time will be reduced and DMS
plant throughput will increase. This simulation experiment illustrates how simulation modeling can be
useful in testing the impact of implementing Lean on the productivity of the diamond mining set up.

These results obtained from the simulation outputs provides evidence of how simulation modeling can
complement Lean tools such as Value Stream Mapping to evaluate the impact of Lean optimization
before actual implementation.

4.7 Conclusion

The chapter presented the first tier of results consists of the tabulated sample data collected from each
process unit. Each data set for each section is accompanied by a summary of the observed challenges
in each section. The developed current state Value Stream Map of the diamond mine’s production
section was presented. The study presented the second tier of results consisting of the results of the
variance analysis and the statistically significant variables to be used for the simulation experiment.
Tabulated simulation outputs for each trial and the graphical illustration of results for the outputs were
presented. The results were analyzed, and deductions were made. The next chapter presents the
conclusions and recommendations of the study.

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 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter provides the conclusion of the study, reflecting the findings against the research
objectives. The chapter then discusses the contributions to the body of knowledge. The study presents
recommendations for both the case company, industry and academia. The study finally presents the
strengths and limitations and proposes suggestions for further research.

5.2 Overview of the study and objectives

The primary research objective was to evaluate the impact of applying the Lean principle in the mining
industry using simulation modeling. The study proved that Lean optimization can improve process
efficiency through reduction of Lead times and increase in plant throughputs. Secondary objectives
were identified so as to achieve the primary objectives.

a) To come up with a clear understanding of the Lean principle and its application in mining.

It was necessary to understand the Lean principle so as to meet the research objectives. The study,
in the literature review chapter, discussed the Lean principle from its origins to the current state. The
key tools of Lean were discussed with a particular focus on those tools relevant to the study.

The study narrowed to the mining industry and discussed the Lean principle as applied to the mining
industry. A case study in literature was discussed to verify the impacts of applying the principle to a
mining operation. Lean tools studied in the literature review such as Value Stream Mapping were then
used effectively as part of the research methodology to address the research objectives.

b) To evaluate the impact of using simulation modeling and optimization in the Lean evaluation
process.

The study discussed simulation modeling as part of the literature review. The study then presented a
synopsis of the Anylogic simulation software followed by the application of simulation modeling in
Lean.

The study employed a case study of one of the leading diamond producers in Southern Africa as part
of the methodology. The researcher incorporated the production chain of the mine into a simulation

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model with the aid of a developed current state Value Stream Map (VSM) and sample data. An
optimization experiment was designed to observe the response times and the plant throughputs in the
simulation model if Lean was implemented to reduce cycle times. The experiment proved that
simulation modeling complements Lean tools such as Value Stream Mapping in providing a Lean
evaluation framework. Simulation modeling is a useful tool in testing the impact of applying Lean
before the actual implementation.

5.3 Contributions to the body of Knowledge

Contributions of this study to the body of knowledge are summarized as follows:

a) The study provides mining companies with an in-depth understanding of the link between the Lean
principle and efficient execution of mining operations

b) The study provides the mining and general process industry with quantified verification of how
sectional cycle (process) times have a bearing on overall cycle times, lead times and plant
throughputs.

c) The study provides the diamond mining industry with its unique documented study on Lean
implementation.

d) The study suggests to industry to incorporate simulation modeling as a tool for lean evaluation
before actual implementation.

5.4 Recommendations

The study presents recommendations in two dimensions. The first one is to make recommendations
specific to academia and the general industry and the second one is to make recommendations
specific to the operations of the case company.

5.4.1 Recommendations to industry and academia

Following this study, the researcher presents the following recommendations for researchers and
industry.

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  The study recommends application of Lean in the mining industry to improve process
efficiency, reduce lead times and improve plant throughputs
 The study recommends simulation modeling as a complimentary tool for Lean evaluation in
mining companies and other industries. The simulation modeling technique will provide
practitioners with the ability to test how key performance indicators will be impacted by Lean
optimization thereby saving costs incurred during actual experimental tests on real operations.

5.4.2 Recommendations for the case study company

The case study company has taken steps to implement some tools of the Lean principle. However, it
requires a framework of holistically monitor its operations on Lean. From the results of this study, the
researcher recommends that the diamond mine should minimize Drilling and blasting time, hand
sorting time and Sizing time, for an optimum lead time. The study presents the following sectional
recommendations based on observations during the study:

Mining section

The study recommends that a sub-stores be established at the mining section workshop, where the
staff stores critical mining spares so as to cut on the delay times incurred during the ordering of spares
from the central stores.

The study also recommends a more synchronized maintenance and operations schedule so that minor
maintenance routines do not cause unnecessary stoppages and delays mid-shift. Therefore a more
coordinated Total Productive Maintenance program is proposed

Crushing and screening plant

A more robust Total Productive Maintenance (TPM) program is suggested to improve the plant
throughputs and reliability to avoid bottlenecks as exhibited by constant filling up of plant bins.

Recovery plant

The processing plant is currently undergoing the second phase of expansion, but the recovery section
has remained unchanged. The study proposes that the recovery plant undergoes expansion so as to
match capacities upstream. The expansion will go a long way in reducing bottlenecks and unnecessary
delays due to filling up of bins.

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The following table presents the suggested lean tools to implement in each section where the
researcher observed challenges.

Table 18: Suggested Lean tools to reduce cycle times

Section Cause of delay Lean tool to resolve

Drilling and Blasting Delay in supply of  Value Stream

emulsion for blasting Mapping
 Just In Time
 Visual
management
Loading and Hauling Stoppages mid-shift for  Value Stream
greasing of machinery Mapping
 Standardized work
Crushing and screening Breakdown of secondary  Value Stream
plant crusher Mapping
 Total Productive
Maintenance
(TPM)
DMS plant Tripping of belt feeder  Total Productive
Maintenance
(TPM)
Recovery plant Delay of movement of  Value Stream
material from sizing bins to Mapping
x-ray machines (jet pump  Total Productive
malfunction) Maintenance
(TPM)

5.5 Strengths and limitations of the study

5.5.1 Strengths of the study

A significant strength of this study is the unique choice of a case diamond mining company, providing
an opportunity to apply Lean and simulation modeling techniques to the southern African mining sector
which is crucial to the economies of southern African countries.

A second strength of the study was the ability to get full access to the whole production chain, providing
with an opportunity to make observations and making comparisons with historical records. The insight
was helpful in capturing realistic data into the simulation model, thereby, producing more reliable
outputs.

A third strength of this study is the availability of a time dynamic tool in form of a simulation model to
test data, which has more impact than normal static charts.

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5.5.2 Limitations of the study

Despite the mentioned strengths, the researcher noted a few limitations of the study;

Firstly, the case study was able to use a few lean tools effectively. Though the literature study proves
that it is virtually impossible to apply every Lean tool in an operation, however, more tools would have
strengthened the study on evaluating impact of Lean on mining operations

5.5.3 Suggestions for future research

The study provides a framework with particular focus on the production side of the mine so as to meet
the objectives. A more holistic and integrated study is therefore suggested expanding the scope to
production, maintenance, logistics and management of the whole mining set up. The researcher
suggests that future research should focus on constructing a simulation model incorporating all those
aspects and utilizing Lean optimization to improve the whole mine efficiency and productivity.

The researcher proposes activity based costing in the simulation model so as to be able to evaluate
the impact of Lean optimization on operational costs.

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