The variable nature of mining is no longer considered an ‘inevitable’. Mining and analyzing these big new data sets can open the door to a new wave of innovation, accelerating productivity and economic growth. Digitization for growth, productivity and innovation . and mining Administration Accommodation/ food services Negative Positive Compound annual growth rate, 1990–2000, % 1 Productivity contribution calculated using Moody’s Economy.com data. 2016; Flesher et al. The results come from new data collected by McKinsey’s MineLens Productivity Index (MPI). The mining and metals (M&M) sector is returning to growth, but companies face a transformed competitive and operating landscape. Our objective is to help clients achieve transformational change by developing data driven insights in the area of maintenance and reliability in asset intensive industries. McKinsey & Company is an American worldwide management consulting firm, founded in 1926 by University of Chicago professor James O. McKinsey, that advises on strategic management to corporations, governments, and other organizations. over the past decade McKinsey Mining Productivity Index computed using global data set comprising – Detailed data at mine-site level for ~50 mines from all major mining jurisdictions – 10 years of performance data All values indexed 2014). The recent McKinsey analysis of the mining industry is more evidence for what we already know: Productivity has been going down and has not yet turned up. The Australian economy has switched from being productivity-driven to being “boom dependent", putting $135b in annual income at risk, global consultancy McKinsey warns. The productivity potential for the industry is huge. Optimize productivity with data and insights from MineLens. It also points to ways to improve productivity … When I was a young McKinsey associate, 19 years ago, I was taught that while the amount of good any single member could produce for the Firm was limited, each one of us had the capacity for causing almost unlimited damage to the famed McKinsey brand. Digitization of Globalization ___ Foundations to get right . Companies are in these regions for the long haul, often building out entire communities to support their mining operations. Address productivity. McKinsey measures mine productivity using its MineLens Productivity Index, a measure of physical mining output, employment at the mine site, the value of … In The construction industry employs about 7 percent of the world’s working-age population and is one of the world economy’s largest sectors, with $10 trillion spent on construction-related goods and services every year. View Otto van der Ende’s profile on LinkedIn, the world’s largest professional community. Under the leadership of Marvin Bower, McKinsey expanded into Europe during the 1940s and 1950s.In the 1960s, McKinsey's Fred Gluck—along with … This decline often occurs near the end of a project, when tasks are congested and multiple trades are working in the same spaces. The consulting group McKinsey’s proprietary MineLens Productivity Index (MPI), which showed a more than 35% drop in global mining productivity between 2004 and 2012, has since begun to recover, but the recovery is weak and the index remains over 30% below the levels attained before the boom (Lala et al. MineLens by McKinsey | 1,031 followers on LinkedIn. Catchy numbers: Productivity declined 28% in the last 10 years. See the complete profile on LinkedIn and discover Otto’s connections and jobs at similar companies. example, according to a McKinsey study released in 2015, US mining labour productivity had declined nearly 30% since 2007, while other production sectors such as motor vehicle manufacturing had improved their productivity by nearly 180% over the same period. Mining is now 28 per cent less productive than it was a decade ago, with Australia sitting in the unwanted position of second least productive mining region in the world. Building on the McKinsey Global Institute’s work which looked at automation, Artificial Intelligence (AI) the report focuses on hybrid remote working - combining remote and office – with the impact on productivity. A report by McKinsey & Company discovered that autonomous vehicles expected to have an economic impact of $0.2 trillion - $1.9 trillion by 2025, wide scale use of autonomous/semiautonomous vehicles could save 30,000 - 150,000 people from traffic accidents. 2018). In the US, by contrast, the construction sector’s labour productivity is lower now than it was in 1968, McKinsey found. IT’S the productivity, stupid. 1 Improving productivity is thus a key lever in turning around a project and controlling costs. Otto has 3 jobs listed on their profile. How to compete and grow: A sector guide to policy builds not only on McKinsey & Company’s industry expertise but on nearly two decades of sector-level analysis by the McKinsey Global Institute (MGI) in more than 20 countries and 28 industrial sectors. … The need to improve shareholder returns will drive bold strategies to accelerate productivity, improve margins and better allocate capital to achieve long-term growth. ... McKinsey … According to Lorenz Jüngling, partner and leader of McKinsey’s Global Energy and Materials Practice in Africa, “All African mining companies can and should take steps to improve productivity and reallocate capital, while about half have the capacity to merge with or acquire companies (M&A). Size represents productivity contribution SOURCE: US Bureau of Economic Analysis; Moody’s Economy.com; McKinsey Global Institute Sunrise Productivity Model McKinsey & Co., Inc. provides management consulting services. The consulting group McKinsey’s proprietary MineLens Productivity Index (MPI), which showed a more than 35% drop in global mining productivity between 2004 and2012,hassincebeguntorecover,buttherecoveryisweak and the index remains over 30% below the levels attained before the boom (Lala et al. In this episode of the McKinsey Podcast, McKinsey partner Chris Mulligan and Mukani Moyo, senior expert, discuss the complexities mining companies face in far-flung locations and the impact of technology on productivity. 2016; Flesher et al. Consultant, McKinsey & Company, Mining Engineer, Data Science Toronto, Ontario, Canada 500+ connections. McKinsey & Company has identified three area of focus to address the root causes of productivity decline: embedding effective management-operating systems at mines; prioritising operational excellence; and focusing on innovation. New & improved business newsletter. McKinsey & Company | 4 . The McKinsey Mining Productivity Index reveals that mining productivity globally has declined 3.5% p.a. Productivity tends to deteriorate when problems accumulate and work becomes more complex. View Yakov Dunaevskiy’s profile on LinkedIn, the world's largest professional community. Productivity in mining operations: Reversing the downward trend May 1, 2015 – A new metric shows just how far mining productivity has declined. It specializes in design, marketing and sales, analytics, operations, transformation and restructuring, risk, strategy and corporate finance, and sustainability and resource productivity. 3. 2018). Three opportunities and challenges . McKinsey estimate that data analytic and robotic technology improvements could produce US$290 billion to US$390 billion in annual productivity savings for oil, natural gas, thermal coal, iron ore and copper producers across the globe in 2035. Yakov has 4 jobs listed on their profile. Eran Zimmerman tackles the issue of corporate responsibility and the involvement of McKinsey in the Oxycontin scandal.. The company was founded by James O. McKinsey in 1926 and is headquartered in New York, NY. The report is part of a broader ongoing MGI research effort on the topic of growth and renewal. The McKinsey MineLens Productivity index, which tracks over 240 mining operations globally, shows that “… the productivity of South African mining operations in base metals, iron ore and platinum declined by 0.3% a year between 2013 and 2017. Asset Productivity at McKinsey is an approach to managing assets throughout their lifecycle from engineering concept to decommissioning. 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