Mining the benefits of computer technology

Are computers making a positive contribution in mining companies or are they viewed as a necessary cost of doing business?

When we read business articles on computing, we see the same companies brought forward as shining examples of the intelligent use of technology. The many unwritten stories are of systems that failed to meet expectations or failed completely.

The purpose of this article is to suggest that one of the reasons why information technology fails to make a positive impact on organizations is that many companies start at the wrong place. Most companies simply automate existing manual processes or procedures, which is accomplished by acquiring software and hardware. If done correctly, this will speed up a specific process but fail to exploit the real power of new technologies. A recent survey of 300 chief executive officers confirmed that companies were placing a greater emphasis on information technology. The same article stated that the main obstacle to obtaining maximum benefit was “failure to change existing processes.”

The fact that a business process has existed for some time doe not mean it is appropriate in light of the capabilities of new technologies. The following example illustrates the point.

In the 1980s, the Ford Motor Co. reviewed its accounts payable department. Originally the department was charged with matching the vendor invoice with the purchase order and receiving slip. Payment was made only when all items matched.

The process of matching occupied the attention of many people. After a re-design, the purchasing department entered the purchase order into a database, effectively creating a purchase requisition. The receiving department updated the database when goods were received, triggering the creation of a cheque.

In the mining industry, there are many examples where processes can be improved:

— A software package is purchased to handle data collection and ore reserve calculations but geological data cannot be easily passed to the engineering department for mine planning.

— A maintenance management system is acquired but information from existing inventory, purchasing and payroll systems cannot be easily included in work order and equipment costs.

— Because of the remote nature of mining operations, telecommunication costs are high. No review is made of the many options available to reduce communication costs because of a lack of knowledge of the technologies available.

The main point is — don’t start computer projects by buying hardware and software to satisfy the requirements of a specific task. Start by reviewing existing procedures and processes and make changes based on the capabilities of new technologies. Some questions to ask about existing procedures: Can we eliminate it? Is it being done somewhere else? Can we combine it with another step? Is it being done at the right stage of the process? Is it being done by the right person? is the information being collected really needed? Is paper output required? What new technologies are available that may change or eliminate the procedure or process?

This is not to imply computer technology has not been successfully implemented. One industry pundit correctly stated that the four main uses of PCs are “wordprocessing, wordprocessing, spreadsheets and wordprocessing.” Acquiring PCs, wordprocessing and spreadsheet packages for use by engineers and geologists for graphics, statistics and writing reports has had a beneficial result. In many cases, that is as far as computerization has gone. Output from one PC is either placed on diskette, or worse, printed and passed to the next employee for further number crunching or analysis. Again, this is not looking at the process, but simply computerizing existing activities. Changing existing procedures in light of what modern computer systems can do changes the way mining companies do business and in so doing reduces operating costs.

New technology is not the panacea for all problems but, when implemented with a systematic review of current operations, can provide astounding results.

— Gord Lawson is a principal of computer consulting firm Auriga Technologies of Toronto.