Digging Deep for Efficiency: Mining Company Strikes $50M in Savings
increase in productive operating time across mining shifts
improvement in operational efficiency through better equipment utilization
reduction in operational costs
Total Savings
The Challenge
A major mining company in Indonesia was operating at scale—but not at its full potential. Though assets and resources were in place, daily operations were weighed down by:
Excessive fuel consumption in heavy equipment
High rental costs for auxiliary machinery
Frequent equipment breakdowns and idle time
Behavioral issues among supervisors affecting shift performance
Inefficiencies in coal loading and train dispatch leading to demurrage penalties
The result: high costs, lost hours, and underperformance despite strong demand. It was time to go beyond extraction—and start unlocking productivity from within.
SSCX Approach
SSCX led a multi-dimensional improvement initiative blending Lean Six Sigma with frontline behavioral change. The engagement focused on:
Mapping the mining value stream using VSM
Conducting Fishbone Diagrams and Logic Tree analysis to identify root causes
Running statistical diagnostics on equipment performance and fuel logs
Piloting small-scale interventions to test improvements before scaling
Delivering supervisory behavior training to strengthen team management
Each solution was designed not only for technical impact but also for operational ownership—ensuring miners, supervisors, and managers could sustain the results.
Exploration & Validation
Key insights emerged from a data-rich diagnostic phase:
Fuel inefficiency was traced to idle engine time and non-optimal equipment dispatch
Rental costs were inflated by unused standby hours and poor planning
Downtime logs revealed repeat breakdowns caused by gaps in preventive maintenance
Supervisory gaps showed up in inconsistent shift handovers and poor crew coordination
Train loading times consistently exceeded PTKAI benchmarks, triggering demurrage charges
Each assumption was validated using real-world data—from fuel consumption trends to shift observation logs—ensuring solutions were evidence-based and scalable.
The Solution
SSCX implemented targeted interventions with measurable gains:
Fuel Efficiency
Rolled out operator coaching and idle-time reduction routines
Introduced fuel-saving SOPs tested via pilot, saving 3–5 liters/hour per machine
Equipment Rental Optimization
Adjusted planning and shift allocation to cut rental time by 10+ hours/month
Created utilization dashboards to reduce excess standby equipment
Maintenance & Reliability
Instituted preventive maintenance protocols with weekly checklists
Reduced downtime with early detection of high-risk equipment patterns
Loading & Logistics
Standardized train loading SOPs, improving turnaround by 15%
Reduced demurrage by aligning coal flow with rail availability
Behavioral Coaching
Trained supervisors in role modeling, communication, and time discipline
Improved crew alignment and productivity with structured shift briefs
The Result
Within months, the company saw major operational gains:
⏱️ 25% more productive time, simply by reducing waste and unplanned delays
⚙️ 20% higher equipment effectiveness, achieved through better maintenance and planning
💸 18% drop in operating costs, including fuel, rental, and logistics penalties
💰 USD 50 million/year saved, based on real cost data and pilot projections
Supervisors were more engaged, equipment more reliable, and crews more efficient. The mine became a smoother, faster, and more profitable operation—without major capex.
What We Learned
This mining transformation proved that true value isn’t just in the ground—it’s in the process. By treating every hour, machine, and crew as an asset to optimize, the company turned operational slack into strategic advantage.
With data as a guide and behavior as a lever, SSCX helped this mining client shift from heavy to agile—digging not just for minerals, but for margin.
