About this Presentation
In Mineral Resource Throughput Management Model for Improving the Performance of Mines, Philip Viljoen presents a Theory of Constraints approach to managing mining operations as one integrated flow system. He begins by challenging local optimization and redefining the mine’s goal around maximizing economic value from a finite mineral reserve over the life of the operation. Philip then applies TOC’s Throughput, Investment, and Operating Expense measures to mineral production and introduces the Mineral Resource Throughput Management model, which links geology, mining, processing, recovery, quality, capacity, and market demand around the system constraint. The presentation also shows how Buffer Management can synchronize priorities across the mine and focus improvement on the blockages that actually restrict mineral flow. A practical case study demonstrates how protecting a critical processing resource from starvation can reveal very large economic opportunities, making the session a useful example of TOC applied specifically to mineral resource management and mining.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Philip Viljoen frames the core mining problem as local optimization. Rather than maximizing the performance of individual departments or equipment, he argues that the goal is to make more money now and over the life of the mine from a finite mineral reserve. That shifts attention from isolated efficiencies to the performance of the whole mining system.
Philip applies TOC’s financial measures directly to mining. Throughput is defined as sales revenue minus true variable expense, while Investment and Operating Expense are treated separately. This creates a decision framework for judging whether changes to recovery, quality, utilization, and flow actually improve the economics of the mine.
The Mineral Resource Throughput Management model connects the Five Focusing Steps with the full mineral-flow system. Philip treats the finite mineral reserve as the strategic system constraint, then examines how mining, processing, recovery, quality, availability, and utilization should be subordinated to maximizing Throughput from that reserve rather than optimizing each area independently.
Buffer Management becomes the practical mechanism for synchronizing flow. Philip shows how shared buffer priorities can tell everyone in the system where to act, when to expedite, and when not to react to noise. In the case study, using upstream buffer management to protect Plant 45 addresses approximately 1,500 hours of annual starvation and identifies an improvement potential of R380 million per year.
Instructor(s)
Philip Viljoen
Philip Viljoen has been associated with AGI South Africa, Goldratt Schools, and Theory of Constraints Southern Africa since 1995. He has worked on Viable Vision projects in South Africa and India and has extensive experience across various industries, including mining, sawmilling, farming, engineering, and projects. He now focuses on enhancing the long-term profitability of farmers by improving the system from soil to fork.